2014-06-06 Study - Budget Leg, Admin, Fin, IT

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fund. So while the City is making up ground, it probably is not making it up fast enough, which is the reason that the Pension Board made the request to change the amortization schedule. He stated that following their recommendation would allow the City to increase its contributions steadily over a period of time versus making one significant contribution. Mr. Crow stated that in his opinion, it would be a good decision to increase the City’s percentage to 80 percent. Ms. Charumilind stated that this year the City contributed the amount recommended by the actuary which was over $800,000, and that should put the City in a good place. Mr. Crow stated that cities which are better funded than University City utilize assumptions that are far more aggressive. However that aggressive rate of return may only make it appear as though they are well funded, when in fact they may not be. He stated that on the return side, the City’s plan is pretty conservative as far as the greater return. So in his opinion, the Pension Board has made a good and prudent first step. CITY MANAGER’S OFFICE Ms. Charumilind stated that the total budget for 2015 is projected to be $685,700, which is a decrease of 5 percent from the previous year. Personnel Services Ms. Charumilind stated that Personnel Services represented 52 percent of the budget and this year there is a projected decrease of eight percent due to a reduction in funding for the Youth Employment Program (YEP). Ms. Charumilind stated that in 2014 the City modified the YEP by partnering with the Chamber of Commerce and local businesses that provide employment. Under this modification local businesses pay the students directly and then invoice the City for the City’s portion of the student’s salary, which is now half of their hourly salary of $7.35 an hour. Ms. Charumilind stated that students work 18 hours and are required to attend a two-hour work readiness program every Friday. Mr. Glickert informed Mr. Walker that this was the type of information he would like to see heralded in the ROAR’s publication. Contractual Services Ms. Charumilind stated that Contractual Services represented 47 percent of the total budget. This is a two-percent decrease from previous years due to the reduction in Temporary Services and in Printing Services. She stated that in previous years the budget for Temporary Services included funding to pay for a secretary to the City Manager which has now been filled with a full-time permanent employee. The new three-year bid for printing services is less than it was last year. Ms. Charumilind stated that this service is used to print the City’s calendar and biweekly newsletter. Ms. Charumilind stated that as in previous years, Professional and Legal Services represented the largest portions of the budget for the City Manager’s office. Mr. Crow questioned whether the City was projecting that it would spend the entire amount of $120,000 that has been allocated for Legal Services. Ms. Charumilind stated that at the time the budget was prepared she had not been able to review all of the items that are still pending. So although her belief is that the full amount will not be necessary, this amount had not been adjusted. She stated that she would provide Council with the actual expenditures prior to the budget being presented for its approval. Commodities Ms. Charumilind stated that this year the Commodities’ portion of the budget is so minimal that its trend lines do not even appear on the chart.