Page 50 - Keller FY20 Approved Budget

Personnel Services: FY 2019-20 Budget $24,156,604
% of Fund Expenditures 59.4%

Compared to $ Growth % Growth
FY 2018-19 Budget $1,254,646 5.5 %
FY 2018-19 Projection $1,510,826 6.7 %

As the city is a service organization, personnel services is the single largest expenditure category for the
General Fund and includes the costs related to salaries, insurance and retirement. Year-end projections
reflect cost savings due to retirements, vacancies and re-organizations within the city during FY 2018-
19. The budget includes a 1.25% market adjustment for certain Public Safety employees as the market
dictated and that were not at the top of the pay range, and the city will continue the step plans for sworn
and certified employees at 2% annually. The city believes this is a sustainable plan and can be maintained
over time. Civilian staff compensation is a potential total of 3.25% compensation increase with 1.75%
being related to a market adjustment for all employees and another 1.5% merit increase based upon
performance. Due to diligent work by the Human Resources Department, the city was able to negotiate
a manageable increase of 5% to health insurance costs for FY 2019-20. The current and prior year saw
no increase to health insurance costs, meaning health insurance costs have only increased the
equivalent of 1.67% annually over the past three years. In addition to changes in compensation, the city
is adding a police officer for coverage in Westlake and a dispatcher. The officer will cost $94,768, but is
offset by an increase in the Westlake agreement for a net impact to the budget of $0. The funding is still
being considered by Westlake and if not approved, the officer position will remain vacant for FY 2019-20
and reconsidered for FY 2020-21. The dispatcher will cost $66,886, but is offset by regional partnership
agreements with Southlake and Colleyville for a net impact to the budget of $19,923.

As part of the conservative approach to budgeting, the city does not budget for vacancy savings. In FY
2018-19, the city council approved a budget amendment to transfer $1,000,000 in vacancy savings to a
self-insurance fund as part of a long-term goal to be self-insured. The FY 2019-20 personnel budget
increased by 5.5% from the FY 2018-19 budget due to the transfer. With the self-insurance amendment
included in current-year personnel costs, FY 2019-20 personnel costs are only increasing by $254,646
or 1.1%.

Operations & Maintenance:
FY 2019-20 Budget $2,959,881
% of Fund Expenditures 7.3 %
Compared to $ Growth % Growth

FY 2018-19 Budget $ 352,588 13.52 %
$ 443,300
FY 2018-19 Projection
17.6 %

Operations and maintenance expenditures include major categories of supplies, equipment, street,
grounds and building maintenance costs. Approximately $300,000 of the growth in operations and
maintenance expenditures can be attributed to re-categorizing the annual Tarrant County Street
Maintenance project from a transfer to the Street CIP fund to an operations and maintenance line-item.
The remaining growth in operations and maintenance expenditures are related to cost share expenses
totaling $50,000 in Self-Contained Breathing Apparatus maintenance.

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