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Chris Miller <br /> From: Chris Miller <br /> Sent: Friday, December 4, 2015 1:18 PM <br /> To: *RVCouncil <br /> Subject: 2015 Projected General Fund Surplus <br /> Dear Council, <br /> I've performed a brief analysis of the 2015 year-to-date General Fund revenues and expenditures and have <br /> concluded that we will likely have a projected budget surplus of approximately $100,000 - $150,000. This is in <br /> sharp contrast to the estimated $375,500 deficit we had anticipated at the beginning of the year. <br /> There are a variety of factors that are contributing to this surplus, but most of it stems from lower-than-expected <br /> personnel-related expenditures. This year we've seen an unprecedented amount of employee turnover with 14 <br /> position changes in the General Fund alone. Those positions included the following: <br /> ❑ Asst. Finance Director <br /> ❑ Accountant <br /> ❑ Police Records Technician <br /> ❑ Police Sergeants (2) <br /> ❑ Police Officers (5) <br /> ❑ Public Works Director <br /> ❑ City Engineer <br /> ❑ Engineering Project Coordinator <br /> ❑ Mechanic <br /> Keep in mind that when we incur employee turnover we typically realize operational savings due to two factors; <br /> 1)vacancy savings resulting from the position remaining vacant for a period of time, and 2) replacing <br /> employees that were at the high end of the pay scale with employees at the low end. It is not unusual to realize <br /> $12-18,000 in savings per person when this occurs. <br /> In addition, we anticipate about$125,000 - $150,000 in savings from lower-than-expected part-time firefighter <br /> costs. Many firefighter shifts have gone unfilled due to a variety of factors including some that are associated <br /> with the on-going transition to the full-time staffing model. I estimate the 2015 total personnel-related savings <br /> at approximately$300,000 - $400,000 including vacancies and delays in the hiring process. <br /> Along with these personnel-related savings, we're also experiencing lower motor fuel, energy, street repair, <br /> contractual maintenance, and other costs totaling over$100,000. <br /> To summarize, the net change is as follows: <br /> General Fund 2015 2015 <br /> Budget Projected Diff. <br /> Revenue $ 13,522,430 $ 13,465,969 $ (56,461) <br /> Expenditures 13,897,930 13,336,394 (561,536) <br /> Surplus(Deficit) $ (375,500) $ 129,575 $ 505,075 <br /> I will be prepared to speak to this at Monday's Council meeting. Let me know if you have any questions. <br /> i <br />