Page 25 - Southlake FY20 Budget

Transmittal Letter

Benefits. This budget includes some changes to the General Fund Expenditure Highlights
employee health insurance benefits.
Highlight Item Expenditure
The City recently entered into a renewal agreement
with Aetna for health insurance. Medical and 2.5% base pay
prescription claims have increased 48% in the Pay adjustment adjustment; merit,
last year and Aetna initially proposed a 33% rate market where
increase. Through negotiations, staff was able to applicable
decrease the proposed increase to 16%. In an effort
to further reduce the increase, the City bundled
dental and vision insurance with the Aetna health Health 10.38% rate
insurance to obtain a 2.5% rate discount on the insurance increase
health insurance. In addition, minor plan design Personnel
changes were made to reduce to overall health
insurance rate increase to 10.38%. For FY 2020, the Dependent $115,000
budget proposes absorbing some of the increase of Healthcare Cost (all funds)
the cost increase for employee dependent coverage Increases
in an effort to maintain competitive insurance rates
with the labor market. The cost of absorbing the IT Support
increase is approximately $115,000 (all funds). Services $57,024
Technician
When evaluating the level of benefits needed to be
competitive within the City’s labor market, it would
be inappropriate to look at each individual benefit Personnel Customer
option separately because of the unique palette of - Service Relations $2,435
benefits offered. A better analysis is to compare the Enhancement Manager
cost of benefits as a percentage of compensation.
The City of Southlake strives to offer benefits at or Development
near the percentage reported for civilian workers by Engineer (HB $131,552
the U.S. Bureau of Labor Statistics. As released in 3167)
June 2019, the civilian benefits percentage is 31.4%.
For FY 2020, the City’s projected benefit costs as a Workers’
percentage of total compensation equals 31.5%. Personnel - Compensation $16,807
86th Texas Rates (SB 2551)
Personnel expenses support Legislative
the focus area of Performance Session Impact Two Part-
Management and Service Delivery, Time Front
Desk Officers
and the strategic corporate
objective of “Attract, develop, and retain a (Former Red $71,748
Light Camera
skilled workforce.”
Officers) (HB
1631)
Operations. The General Fund includes the dollars
needed to provide basic services. Operating Kronos
expenses are relatively stable from FY 2019, with (Timekeeping)
minimal new items. One item to note that is included Operations Upgrade & $86,562
is the upgrade to the City’s time-keeping system at a Implementation
cost of $86,562.

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