05/19/2022 - SpecialThursday, May 19, 2022
8:00 AM
City of Clearwater
Main Library - Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
Main Library - Council Chambers
City Council
Special Meeting Agenda
Special Meeting
May 19, 2022City Council Special Meeting Agenda
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into the record.
1. Call to Order
2. Citizens to be heard re items not on the agenda
3. City Manager Reports
3.1 Discuss department reorganization and staffing
3.2 Long term financial forecasts for General Fund and major utility funds.
4. City Attorney Reports
5. Closing comments by Councilmembers (limited to 3 minutes)
6. Closing Comments by Mayor
7. Adjourn
Page 2 City of Clearwater Printed on 5/17/2022
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#22-0506
Agenda Date: 5/19/2022 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: City Manager's Office
Agenda Number: 3.1
SUBJECT/RECOMMENDATION:
Discuss department reorganization and staffing
SUMMARY:
Page 1 City of Clearwater Printed on 5/17/2022
|1CITY OF CLEARWATERFTE and Staffing Discussion100 S. Myrtle Ave. | Clearwater, FL 33756www.myclearwater.com
|2CITY OF CLEARWATERDepartment ReorganizationReview organizational structure, find opportunities that lead to improved efficiency in performance of citywide responsibilities•Public Works Department•Centralize resources under a single department for maintenance and construction of ROW, transportation, stormwater•Engineering, Parks and Recreation, Public Utilities•Utility Customer Service•Create interdepartmental opportunities for staff development, improve efficiency, additional senior management•Utility Customer Service, Finance•Office of Innovation•Create and maintain a framework for innovation within the city and drive implementation; strengthen the link with the community through additional neighborhoods focused resources
|3CITY OF CLEARWATERFTE HistoryFiscal Year (FY) General Fund Other Funds TotalPeak – FY071,281.5 672.81,954.3Low – FY121,018.4 657.81,676.2Change FY07 – FY12(263.1) (15.0)(278.1)Fiscal Year FY221,113.9 734.81,848.7Change FY12 – FY2295.5 77.0172.5
|4CITY OF CLEARWATERAdditional FTEs ProposedCategoryGeneral FundOther Funds TotalAccountabilityAudit, Fire (Payroll), Planning, Information Technology, M&A4.0 4.08.0Operational Efficiency – CM InitiativeOffice of Innovation (Neighborhoods),Public Works, Human Resources (Training), City Clerk (Grant Coordination), Economic Development16.0 0.016.0New CapitalParks & Recreation – Downtown Core Maintenanceand Programming (Imagine Clearwater, Cleveland Streetscape)18.8 0.018.8
|5CITY OF CLEARWATERAdditional FTEs ProposedCategoryGeneral FundOther Funds TotalIncreased Levels of ServiceLibrary – Increased hours at North Greenwood BranchParks & Recreation – Custodial Team, JWB programsPolice – Officers to support increased service demandsMarine & Aviation – Additional after-hours security, increased peak-hour staffing16.7 3.320.0Total – New FTEs55.5 7.362.8Reduced FTEs; Positions RepurposedPositions vacant in excess of one year, reclassed between funds(11.0) (18.0)(29.0)Net change in FTEs (from FY22)44.5 (10.7)33.8
|6CITY OF CLEARWATERFTE Analysis – FY23 ProposedFiscal Year (FY) General Fund Other Funds TotalProposed FY231,158.4 724.11,882.5Change FY12 – FY23140.0 66.3206.3Net Change FY07 – FY23(123.1)51.3(71.8)
|7CITY OF CLEARWATERAccording to the BLS, the number of job openings was at a series high of 11.5 million on the last business day of March 2022.Vacancy RateHighest (2022) = 13.8%Lowest (2010) = 6.0%Average since 2001 = 8.2%
|8CITY OF CLEARWATERTurnover Rate
|9CITY OF CLEARWATERUS Bureau of Labor Statistics (BLS)Separation Data
|10CITY OF CLEARWATERVacancy Reasons in the Last Two Years•54% Resignation•24% Retirement•17% Involuntary or Pending Discipline•5% Health
|11CITY OF CLEARWATERResignation Reasons in the Last Two Years
|12CITY OF CLEARWATERVacancy Contributing Factors•The “Great Resignation” or “Great Reshuffle”?•Workers are quitting jobs at a higher rate•In 2021, 48 million US employees quit their jobs – an annual record•National Labor Shortage•As of March 2022, the labor market contains 11 million jobs and 6 million unemployed, per the Bureau of Labor Statistics (BLS)
|13CITY OF CLEARWATERWage Issues•Market Survey Results•Over 50% jobs behind market•100% of the comparators who responded to our poll hire up to 50% or more through their pay ranges vs our now 20% •Inflation outpacing wage increases•March 2021-2022 10.2% in Tampa Bay area vs 8.5% nationally
|14CITY OF CLEARWATEROther Contributing Factors•Pension plan for non-hazardousemployees•Long vesting period •Average of our comparators’ DB plans is 6.9 years (Clw 10 years)•Contribution (Clw 8%) vs benefits (Clw multiplier 2%)•Average employee contribution is 3.3% and multiplier is 1.75% for all comparator DB plans•Average contribution 5.42% with 2.15% multiplier for comparator DB plans where employees do not contribute to Social Security•Remote work options & flexible schedules•Remote currently not offered, other than for FMLA
|15CITY OF CLEARWATERHow Can We Better Attract New Employees?•Enhanced relationships with schools, prisons, veteran programs, etc.•Increased social media presence (LinkedIn, Facebook)•Job fair attendance•Higher hiring salaries•Cultural assessment•Pension changes under review•Enhanced wellness offerings
|16CITY OF CLEARWATERHow Can We Retain Current Employees?•Increased employee appreciation funding and offerings. •Merit-based increase program•Increased vacation accrual rates and implemented sell-back program•Expanded JPG program•Cultural Assessment•Pension changes under review•Enhanced wellness offerings•Adjustments resulting from market survey data•Formal study planned for FY23
|17CITY OF CLEARWATERWage Recommendations•Re-grade titles identified as behind market*•Provide equity adjustments* to incumbent permanent PT and FT employees:•Based on time in title, advance up to 75% through the re-graded range, up to $7500•4% general wage increase (GWI) for SAMP•Up to 4% merit increase for SAMP•Collective bargaining agreement (CBA) adjustments as previously agreed upon.*Adjustments for CWA positions and employees must be negotiated.
|18CITY OF CLEARWATERQuestions?
Cover Memo
City of Clearwater Main Library - Council
Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
File Number: ID#22-0462
Agenda Date: 5/19/2022 Status: City Manager ReportVersion: 1
File Type: Action ItemIn Control: City Manager's Office
Agenda Number: 3.2
SUBJECT/RECOMMENDATION:
Long term financial forecasts for General Fund and major utility funds.
SUMMARY:
Annual review of long-term financial forecasts for the General Fund and the major utility funds,
including Water & Sewer, Stormwater, Gas, and Solid Waste & Recycling.
Page 1 City of Clearwater Printed on 5/17/2022
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Water & Sewer operating revenues 100,647,044$ 104,206,068$ 107,963,367$ 111,863,643$ 115,912,538$ 120,115,923$
Less: operating expenses (62,834,254) (65,533,216) (68,364,667) (71,117,768) (73,705,196) (76,320,355)
Net Operating Income 37,812,790 38,672,852 39,598,700 40,745,875 42,207,342 43,795,568
Non-Operating Income/(Expense):
Interest earnings 1,584,021 3,009,356 2,782,497 1,602,043 823,364 658,216
Other non-operating revenues 44,000 44,000 44,000 44,000 44,000 44,000
Interest expense (4,625,155) (4,446,255) (5,187,375) (5,922,051) (7,589,772) (14,763,624)
Capital outlay (42,421,159) (51,695,273) (93,285,427) (91,783,703) (60,201,001) (63,693,336)
Add back depreciation exp 14,500,000 15,000,000 15,500,000 16,000,000 16,500,000 17,000,000
Transfers in/(out)(5,008,810) (5,535,587) (5,731,064) (5,937,985) (6,154,501) (6,375,189)
Net change in reserves 1,885,687$ (4,950,907)$ (46,278,669)$ (45,251,821)$ (14,370,568)$ (23,334,365)$
Unrestricted reserves 159,690,241$ 154,739,334$ 108,460,665$ 63,208,844$ 48,838,276$ 25,503,911$
Less required reserves (6 months O&M)24,167,127 25,266,608 26,432,334 27,558,884 28,602,598 29,660,178
Reserves in excess of policy minimum 135,523,114$ 129,472,726$ 82,028,331$ 35,649,960$ 20,235,678$ (4,156,267)$
Water & Sewer Utility Fund
Based on Preliminary Fiscal Year 2022 Rate Study
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Operating revenues 17,090,233$ 17,386,304$ 17,687,556$ 17,994,080$ 18,305,968$ 18,623,314$
Less: operating expenses (10,871,030) (11,161,075) 4,094,483 (11,909,058) (12,191,493) (12,480,779)
Net Operating Income 6,219,203 6,225,229 21,782,039 6,085,022 6,114,475 6,142,535
Non-Operating Income/(Expense):
Interest earnings 418,226 873,364 924,018 809,574 691,635 591,099
Other non-operating revenues 6,000 6,000 6,000 6,000 6,000 6,000
Interest expense (583,962) (429,369) (385,888) (347,738) (312,563) (276,113)
Capital outlay (7,326,546) (8,142,718) (12,401,364) (12,000,000) (12,413,969) (12,748,636)
Early redemption of bonds (7,885,000) - - - - -
Add back depreciation expense 3,700,000 3,700,000 3,700,000 3,800,000 3,800,000 3,800,000
Transfers in/(out)(2,242,880) (2,256,477) (2,239,963) (2,249,268) (2,286,860) (2,325,957)
Net change in reserves (7,694,959)$ (23,971)$ 11,384,842$ (3,896,410)$ (4,401,282)$ (4,811,072)$
Unrestricted reserves 37,340,655$ 37,316,684$ 48,701,526$ 44,805,116$ 40,403,834$ 35,592,762$
Less required reserves (6 months O&M)6,848,900 6,923,500 (734,300) 7,253,000 7,395,500 7,541,400
Reserves in excess of policy minimum 30,491,755$ 30,393,184$ 49,435,826$ 37,552,116$ 33,008,334$ 28,051,362$
Stormwater Utility Fund
Based on Preliminary Fiscal Year 2022 Rate Study
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Gas operating revenues 47,655,600$ 49,255,948$ 50,257,882$ 51,174,753$ 52,198,248$ 53,242,213$
Less: Operating expenses (36,982,744) (41,590,063) (42,690,232) (43,812,441) (45,447,915) (46,142,052)
Net Operating Income 10,672,856 7,665,885 7,567,650 7,362,312 6,750,333 7,100,161
Non-Operating Income/(Expense):
Interest earnings 175,000 368,783 387,276 406,024 425,432 445,768
Interest expense (229,070) (300,000) (300,000) (300,000) (300,000) (300,000)
Capital outlay (10,900,000) (13,700,000) (12,300,000) (9,500,000) (7,650,000) (7,650,000)
Add back depreciation expense 4,072,424 4,291,043 4,509,662 4,728,281 4,945,681 5,174,172
Transfers in/(out)(1,700,000) (1,700,000) (1,700,000) (1,700,000) (1,700,000) (1,700,000)
Net change in reserves 2,091,210$ (3,374,289)$ (1,835,412)$ 996,617$ 2,471,446$ 3,070,101$
Unrestricted reserves 26,652,390$ 23,278,101$ 21,442,689$ 22,439,306$ 24,910,752$ 27,980,853$
Less required reserves (6 months O&M)18,491,372 20,795,032 21,345,116 21,906,221 22,723,958 23,071,026
Reserves in excess of policy minimum 8,161,018$ 2,483,070$ 97,573$ 533,086$ 2,186,794$ 4,909,827$
Gas Utility Fund
Pro Forma Projections per Gas Department
Based on FY2021 Rate Study
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Operating revenues 29,178,403$ 30,073,596$ 31,007,011$ 31,830,581$ 32,685,662$ 33,573,113$
Operating expenses (25,887,234) (26,838,468) (27,977,845) (29,372,930) (30,626,622) (31,941,978)
Net Operating Income 3,291,169 3,235,128 3,029,166 2,457,651 2,059,040 1,631,135
Non-Operating Income/(Expense):
Interest earnings 321,404 489,185 655,933 739,744 835,100 858,522
Other non-operating income (expense)5,000 5,000 5,000 5,000 5,000 5,000
Interest expense (86,010) (86,010) (86,010) (86,010) (86,010) (86,010)
Net capital outlay expenditures (1,143,300) (2,708,052) (10,994,381) (5,035,469) (1,066,533) (1,098,528)
Add back depreciation expense 1,500,000 1,500,000 1,500,000 1,700,000 1,700,000 1,700,000
Transfers in/(out)(1,498,530) (1,548,966) (1,604,812) (1,654,047) (1,705,387) (1,750,683)
Net change in unrestricted reserves 2,389,733$ 886,285$ (7,495,104)$ (1,873,131)$ 1,741,210$ 1,259,436$
Unrestricted reserves 33,625,720$ 34,512,005$ 27,016,901$ 25,143,770$ 26,884,980$ 28,144,416$
Less required reserves (6 months O&M)14,264,532 15,547,743 20,288,519 18,031,223 16,699,271 17,395,595
Reserves in excess of policy minimum 19,361,188$ 18,964,262$ 6,728,382$ 7,112,547$ 10,185,709$ 10,748,822$
Solid Waste and Recycling Fund
Based on Fiscal Year 2021 Rate Study
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032
Increase / (Decrease)- - - - - - - 0.8000 - -
Total Millage Rate 5.9550 5.9550 5.9550 5.9550 5.9550 5.9550 5.9550 5.9550 6.7550 6.7550 6.7550
Gen Fund Millage Rate 5.6713 5.6713 5.6713 5.6713 5.6713 5.6713 5.6713 5.6713 6.4332 6.4332 6.4332
% Increase 5.41%6.50%3.00%3.00%3.00%3.50%3.50%3.50%3.50%3.50%3.50%
Taxable Value 13,379,724$ 14,249,406$ 14,676,888$ 15,117,195$ 15,570,711$ 16,115,686$ 16,679,735$ 17,263,525$ 17,867,749$ 18,493,120$ 19,140,379$
Ad Valorem Revenues @ 96%72,648,340 77,580,200 79,907,600 82,304,800 84,773,900 87,741,000 90,811,900 93,990,400 110,348,700 114,210,900 118,208,300
Other Revenues 95,201,000 97,819,000 100,509,000 103,273,000 106,113,000 109,031,100 112,029,500 115,110,300 118,275,800 121,528,400 124,870,400
Total Revenues 167,849,340 175,399,200 180,416,600 185,577,800 190,886,900 196,772,100 202,841,400 209,100,700 228,624,500 235,739,300 243,078,700
Total Expenses (excluding below)146,380,000 159,138,500 167,406,400 174,859,600 182,648,200 190,787,300 199,292,600 208,180,700 217,468,700 227,174,700 237,317,500
Transfers to CIP 19,452,010 16,351,980 16,182,420 13,965,640 11,845,820 13,710,280 11,152,630 12,000,000 12,000,000 12,000,000 12,000,000
Net Operating Income 2,017,330$ (91,280)$ (3,172,220)$ (3,247,440)$ (3,607,120)$ (7,725,480)$ (7,603,830)$ (11,080,000)$ (844,200)$ (3,435,400)$ (6,238,800)$
Beginning Unassigned Fund Balance 67,748,675 69,766,005 69,674,725 66,502,505 63,255,065 59,647,945 51,922,465 44,318,635 33,238,635 32,394,435 28,959,035
Ending Unassigned Fund Balance 69,766,005 69,674,725 66,502,505 63,255,065 59,647,945 51,922,465 44,318,635 33,238,635 32,394,435 28,959,035 22,720,235
8.5% Minimum Reserves 14,095,721 14,916,691 15,605,050 16,050,145 16,531,992 17,382,294 17,887,845 18,715,360 19,504,840 20,329,850 21,191,988
Excess Reserves 55,670,284$ 54,758,034$ 50,897,456$ 47,204,920$ 43,115,954$ 34,540,171$ 26,430,791$ 14,523,276$ 12,889,596$ 8,629,186$ 1,528,248$
General Fund Forecast
05/10/2022
General Fund Forecast 5-10-2022