07-27-2020 Council Special Work Session Packet

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FORM B-1 2021 ADJUSTMENTS TO BASE BUDGET DEPARTMENT #:402 FUND:101 NAME:ADMINISTRATION B-1 & B-2 TOTAL $9,000 TOTAL B1 CHANGES $9,000 1 Account #:4300 Amount (neg if decrease)$3,000 PROFESSIONAL SERVICES Description of Adjustment: Professional Services has been over budget for the past three years. Contributors to increases in this line item are linked to recruitment and mandated testing percentage increases for drug and alcohol testing. Psychological, drug, and fitness testing is being performed on police and firefighters before each hire. Candidates do wash out in the psychological step of the recruitment process. There are also added testing requirements for our new cross-trained and POC firefighter's regarding fit mask testing. Please note: testing costs also increase over the years for all of the aforementioned. Labor consultant costs were also allocated to this line item in 2019 contributing to the overage. (See Other Consultants) Over budget: $6,731 in 2018, $14,610 in 2019; already over in 2020. Estimated minimum overage of $3,000 for 2020. Taking an average of three years being over, this equates to an estimated budget need of $18,000. Considering the 2019 spike, which should be redirected under labor consultants, staff is asking for a $3,000 increase to the professional services line item. Benefits if done: Brings the City closer in line with expenses incurred. Many of these testing and screening processes are required by law. Implications if not done: Will continue to remain over budget, unless there are no new hires within the year. Please note, there is high turnover with our POC firefighters. 2 Account #:4310 Amount (neg if decrease)$6,000 OTHER CONSULTANTS Description of Adjustment: In 2016, there was $9,000 budgeted for labor consultants. This line item has incrementally decreased throughout the years. Staff has been redirecting labor expenses to department specific budgets and the professional services line item. For example, professional services was over budget by $14,610 in 2019. Approximately $9,000 of this overage was legal fees from labor relations. It's most appropriate to show this under labor consultants due to its descriptors of arbitration and employment law fees. Staff is requesting this line item increase back to 2016 levels in attempt to use this account properly and show true legal expenses linked to labor. Please note, as in 2019, 2020 is also expected to be a significantly high legal expense year for labor relation matters. Staff may still be requesting a number too low for 2021, but this leads the City back in the right direction of coding legal fees correctly. Benefits if done: More accurately reflects the true costs and expenses of legal fees tied to employment law/ labor relations. Implications if not done: Reallocated expenses elsewhere. Impact potential budget overages elsewhere. 15