FY2021 Budget

Other recommendations discussed at that time to further adjust the merit pay structure for performance were to be considered with the FY 2021 budget proposal.

Since that time, how we do our work has changed due to COVID-19. Employees have been absent from the workplace and focusing primarily on essential work through alternative strategies and delivery mechanisms. The ability to accomplish some workplan goals has been compromised for many employees. Other employees, most notably public safety employees, are significantly involved daily in COVID-19 response. As a result, the organization does not have the capacity to effectively conduct meaningful performance evaluations. Due to these factors, I have discontinued the performance evaluation process for this year in lieu of an alternative means of recognition. It is still essential to reward our employees for their work in a fair and equitable manner, and to not undo the progress achieved with the mid-year pay adjustments. I am recommending a 3% pay adjustment (pro-rated for employees with less than one full year of service) for all employees. This recommendation correlates with the recommended minimum Meets Expectations merit pay percentage. A mechanism to address performance above the Meets Expectations level will be developed for consideration in FY 2021 as market conditions allow. Total funds requested to support the 3% pay adjustment and related payroll costs is approximately $450,000 (total compensation). In comparison, the average merit pay increase for FY2020 was 3.52% merit pay increase for FY 2019 performance evaluations as compared to 2.76% in FY 2019 for 2018 performance evaluations. Other Employee Benefits At its meeting in January 2019, the Local Government Employees Retirement System (LGERS) Board amended its policy for employer contribution rates to LGERS for future years. Effective July 1, 2020, the base employer contribution rate with respect to law enforcement officers (LEOs) will increase from 9.70% to 10.90% of reported compensation. With respect to all other employees, it will increase from 8.95% to 10.15% percent of reported compensation. Additional rates, such as rates associated with death benefits, will be added to the base rate to determine the actual contribution percentage. The cost of these increases is estimated to be $151,000 and has been included in personnel total compensation costs. Further increases in the base rates will be effective July 1, 2021, equal to 1.20% of reported compensation each year. Rates will be 11.35% for non-LEO employees and 12.10% for LEO employees, respectively next fiscal year. These projected rate increases have been included in future year forecasts. Part-time pay plan rates have also been evaluated and streamlined as a part of the Munis HR/Payroll upgrade. There is no significant impact on the budget from these recommendations.

Capital Investment Program Expenditures

Several major capital projects were initiated in FY 2020: •

NC54 Corridor Congestion Mitigation Project - Engineering design work for the Airport Boulevard Extension from the intersection of Garden Square Boulevard to Church Street was authorized in FY 2020. One million dollars will be used support initial survey and

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