Annual Budget 2002 Memo "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
Ocoee S.SCOTT VANDERGRIFT
(13( o CITY OF OCOEE DANNYHONEELL
al 150 N. LAKESHORE DRIVE SCOTT ANDERSON
OCOEE,FLORIDA 34761-2258 RUSTY JOHNSON
"•"y ?" (407)905-3100 NANCY J.PARKER
ffP Or G000`�i CRY MANAGER
JIM GLEASON
MEMORANDUM
TO: EMPLOYEES \c\
FR: JAMES GLEASON, CITY MANAGER
DA: AUGUST 10, 2001
SU: 2002 ANNUAL BUDGET
I am taking this opportunity to advise you of what I am proposing for the next fiscal year
budget.
First, let me say that the available funds are limited for 2002 and the elected officials will
have difficult choices to make. I have made every effort to take into consideration the
needs of our citizens and the services they have come to expect from our City. The
requests from our elected officials have been considered as a result of dialogue each have
had with constituents and needs in different areas of Ocoee.
Secondly, one of the most important considerations I faced in this budget was each of
you, our family of employees. When a budget is so tight and money scarce often
Managers will begin the process of eliminating positions within specific departments. I
refuse to do this. Each of you is important to the City of Ocoee and much needed.
Faced with the dilemma of how to present a balanced budget including the roll back tax
rate, has been a challenge. Nation-wide government entities are faced with rising
insurance costs, and increased costs for all benefits. I am proposing the following to
contain costs and to maintain the level of medical insurance our employees have come to
expect:
1. I am proposing a 3% cost of living increase for all our employees however in
order to do this I proposed freezing the minimum and maximum levels of all
pay-grades. In other words employees who have not reached the maximum
within their pay-grade level will receive the 3% within their pay-grade and
employees who have reached the maximum level of their pay-grade will
receive a check for the cost of living increase on October 19, 2001.
2. I am proposing a merit increase of 0% to 2.5% for those employees that have
not reached the maximum within their pa ade. I believe that the automatic
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Protect Ocoee's Water Rcmurces i.
increases of the past have not been fair to the system. It rewards all employees
the same increase regardless of skill level and productivity levels. It will be
more important now for evaluators to evaluate employees based on
performance and actions versus just automatic increases.
3. I am proposing the following change in the vacation schedule:
a. One through five years of service 80 hours
b. Six through ten years of service 120 hours
c. Eleven through fifteen years of service 160 hours
d. Sixteen years+ 200 hours
e. Employees will be required to take the time off shown above. Failure
to take all the time required shall cause the employee to lose the time
not taken on October 1"
f. No longer will employees combine sick and vacation to meet the time-
off requirement.
4. I am proposing the elimination of the two additional personal leave days that
were added to the employee leave account for perfect attendance.
5. I am proposing that new employees must first complete the one-year probation
period in order to qualify for the two personal holidays.
6. I am not proposing changes to our Health Insurance coverage nor am I
proposing changing companies. I recommend we continue with Blue Cross
and Blue Shield. The deductibles will remain the same and we will provide
the same Health benefits you have come to expect. The annual cost paid to
Blue Cross and Blue Shield for 2001 is $1,370,237.00 and this will increase to
Sl,740,235.00. I am therefore proposing the following:
a. All employees hired and employees adding dependent coverage
on or after the open enrollment period during September, 2001
shall be responsible for 100% of the premium for dependent
coverage on all insurances.
b. Employees with dependent coverage before 10/1/01 who now
pay$35.18 bi-weekly will pay $51.02 bi-weekly on 10/1/01 this
is a difference of $15.84 bi-weekly or an increase of 3.7%.
This increase will bring the employee dependent coverage
contribution to 25% of the premium. The City will pay 75%
of the premium for dependent coverage. The proposed 3% cost
of living increase will offset this change.
7. I am proposing only two new positions this year. The position of Technical
Support/Trainer will be added to the IS department and one of these positions
will be assigned to the Police/Fire/Communications departments. The Police
position is actually an athletic aide that is presently a temporary position
(through 9/30/01)to assist with the boxing program.
8. I am proposing two title changes. They are title changes only and the pay-
grade is the same. There are some transfers of employees from one
department to another,however, this has no financial impact on the budget.
What I have described are some of the most significant changes I am proposing. Below
you will note the significant increases that have negatively impacted the budget that
required me to propose the changes mentioned in this memorandum:
1. Workers' Compensation 2001 $262,046; 2002 $345,174 an increase of$89,128 which
represents a 31.72% increase.
2. Dental/Vision Insurance 2001 $89,013; 2002 same premium 0% increase.
3. Life Insurance 2001 $30,190; 2002 $33,208 an increase of$3,018 which represents a
10% increase.
4. Long Term/Short Term Disability Insurance 2001 $114,985; 2002 $109,500 a
decrease of$5,485.00 which represents a decrease of 4.7%. Resulted from changing
the provider with no change in benefits.
5. Multi Peril Insurance 2001 $113,868; 2002 S125,255 an increase of$11,387 which
represents a 10%increase.
6. Auto Liability Insurance 2001 $47,219; 2002 $51,941 an increase of$4,722 which
represents a 10% increase.
7. Public Officials Insurance 2001 $11,456; 2002 $12,602 an increase of$1,145 which
represents a 10%increase.
8. Blue Cross/Blue Shield Health Insurance 2001 $1,370,237; 2002 $1,740,235 an
increase of$369,998 which represents a 27.2%increase.
This year the Budget Team consisted of all the Department Directors who supported the
changes we have had to make in order to submit a balanced budget to the Commission.
Everyone worked long and hard and we all came to agreement on the sacrifices that each
department had to make. Each Department Director is in agreement that the budget we
are submitting is a workable budget and services will not be compromised. I would like
to thank everyone who has worked on this budget.
cc: The Honorable Mayor
Members of the Commission