Page 50 - Keller Budget FY21

Personnel Services: FY 2020-21 Budget $24,802,086
% of Fund Expenditures 63.1%

Compared to $ Growth % Growth
FY 2019-20 Budget $1,645,482 7.1%
FY 2019-20 Projection $2,085,562 9.2%

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 2019-
20. The FY 2020-21 budget includes step plans for sworn and certified employees at 2.0%. Also included
in the budget is a 2.0% merit increase for civilian employees. The step plan and merit increase would be
implemented on October 1. Market adjustments have also been included and may be implemented in
April based upon economic factors such as preliminary property values and sales tax. If implemented as
budgeted, public safety employees may receive market adjustments of up to 4.0% and civilian employees
may receive market adjustments of up to 2.0%. Because the market adjustments would be implemented
in April, they would have an impact of only 2.0% related to public safety employees and 1.0% related to
civilian employees.

Due to diligent work by the Human Resources Department, the city was able to negotiate a manageable
increase of 4.4% to health insurance costs for FY 2020-21. Fiscal year 2019-20 saw an increase to health
insurance costs of 5.0% and fiscal years 2018-19 and 2017-18 saw no increase to health insurance costs.
This means that health insurance costs have only increased the equivalent of 2.4% annually over the
past four years. During FY 2020, the City of Keller partnered with the Humane Society of North Texas
(HSNT) for the management of the Regional Animal Adoption Center. The center serves the cities of
Keller, Southlake, Colleyville, Westlake, and now Roanoke. As a result of the partnership with Roanoke,
the city will be adding an animal control officer position, which will be funded with the regional partners.
During FY 2019-20, the City contracted with HSNT to run the animal control kennel operations and will
be removing the three part-time kennel technician FTEs related to this service. For FY 2020-21, in Police
Operations a police officer position will be reclassified to a police sergeant position and a full-time SRO
position in the General Fund will be moved to a less-than full-time SRO position in the Public Safety
Fund. The SRO position will decrease FTEs by 0.25 in total but will have no impact to service levels or
interlocal funding.

As part of the conservative approach to budgeting, the City does not budget for vacancy savings. In FY
2019-20, 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 2020-21 personnel budget
increased by 7.1% from the FY 2019-20 budget due to the transfer. With the self-insurance amendment
included in current-year personnel costs, FY 2020-21 personnel costs are only increasing by $645,482
or 2.7%.

Operations & Maintenance:
FY 2020-21 Budget $3,017,813
% of Fund Expenditures 7.7%
Compared to $ Growth % Growth

FY 2019-20 Budget $74,932 2.6%
FY 2019-20 Projection $88,921 3.0%

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