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HomeMy WebLinkAboutIR 9778 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9778 To the Mayor and Members of the City Council July 28, 2015 r� Page 1 of 5 ji �i7 Y •a SUBJECT: 15 YEAR BUDGET HISTORY — FINANCIAL MANAGEMENT r0rn SERVICES In an effort to provide a framework for current and future budget requests, staff is providing 15 years of historical data by department over the next several months. Data includes Fiscal Year 2000 through Fiscal Year 2015. In graph format, the data includes the following components: 1. Population 2. Staffing Levels with Population 3. Square Miles of the City of Fort Worth 4. Adopted Budget with Square Mileage a. General Fund and other funds as applicable Population From 2000 to 2015, the population in Fort Worth grew by 246,306 new citizens or about 46 percent. This trend is expected to continue as Fort Worth continues to be singled out as one of the fastest growing large cities in both Texas and America. Fort Worth Population Growth 900,000 7.0% 800,000 628% 5.91% 6.0% 700,000 C 5.0% C 600,000 .64% R Q 500,000 4.0% O IL A3% R 400,000 2. 3.0% C ya 3 F 300,000 2. 1.75% 2.0% 200,000 y 100,000 1.17% 0 1 129% 1.0% 0 0.0 534,694 540,950 557,750 579,250 597,150 624,850 664,100 686,850 702,850 720,250 741,206 748,450 757,810 767,560 781,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: North Central Texas Council of Government(NCTCOG) Population —%Change Square Miles By comparison, the square mileage in the City grew from 308 to 353 square miles, or 15 percent. The 25 square mile increase from 2002 to 2003 included the annexation of 7,744 acres known as 287 Zone LPA (M&C PZ-2438). ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9778 To the Mayor and Members of the City Council July 28, 2015 r� Page 2 of 5 �i �i7 Y •a SUBJECT: 15 YEAR BUDGET HISTORY — FINANCIAL MANAGEMENT rrn SERVICES Fort Worth Square Mileage Addition of 287 Benbrook Boundary 360 Zone LPA Swaps and 9.0% 8.06% Disannexa5ons 350 8.0% 7.0 340 6.0% m y 330 5.0% 0. ` 320 4.0% m R rn N 310 2 3.0% 2.0% y 300 2 4 290 0.97 01. .38% 0.33% 0.52 1.0% m -- 0.11 % % 0.22% 0.31% 0.0% 0.02/ (0.31%) 280 (1.0%) 308 316 319 344 346 346 346 347 348 349 350 350 351 352 351 353 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Square Mileage --%Change General Fund Annual Budget and Authorized Positions The overall growth in population and service area has had its impact on the General Fund total budget and authorized positions. The General Fund adopted budget increased 82 percent from 2000 to 2015, while the authorized positions increased 12 percent over same period. Fort Worth General Fund Annual Budget and Authorized Position Growth 700 q ggg 5,000 4,601 4,239 4,478 4,395 4,296 4,378 4,451 4,329 41354 4,500 600 3,879 3,935 3,974 4,016 4,061 4,157 `"._ :a r 4,000 N 500 3,500 D c c O g 400 3,000 0 N v 2,500 m rn a v � m 300 2,000 N, F 200 1,500 N 1,000 100 500 0 i 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 =Budget Authorized Positions Impact of Growth in Population and Square Mileage Relative to Budget The combined Financial Management Services Department (FMS) (including Risk Management, Budget, Capital Projects, Office Services and the Mailroom) authorized positions (APs) increased from 65 staff members in 2000 to 104 in 2015, an increase of 60 percent. Although the Risk Management Division did not merge with FMS until 2002, it is shown for all 15 years for continuity. The chart below depicts the ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9778 To the Mayor and Members of the City Council July 28, 2015 oars Page 3 of 5 �i �i7 Y •a SUBJECT: 15 YEAR BUDGET HISTORY — FINANCIAL MANAGEMENT r0rn SERVICES different activities and divisions that have been merged within the Financial Management Services Department over time. The core finance functions grew from a staff of 60 in fiscal year 2000 to a staff of 79 in fiscal year 2015, representing a 31 percent increase. Financial Management Services Department Authorized Strength (all funds) 120 900,000 3 3 800,000 100 -,. 6 700,000 11 9 0 80 9 9 7 600,000 7 9 7 7J EL 7 500,000 a N 60 >v N 400,000 c t a ao 63 64 71 65 72 72 300,000 0 60 58 60 g 57 200,000 20 100,000 0 0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FMS Risk Mgmt Fund Budget =Capital Projects Office Services Mailroom r Population The total annual budget for the Financial Management Services Department increased from $9.8M in FY2000 to $18.5M in FY2015, about 89 percent. The cost of the combined services provided by the Department relative to population increased from $18,366 per 1,000 citizens in FY2000 to $23,779 in FY2015. Financial Management Services Department Adopted Budget (all funds) $20 360 $0 $18 350 $16 �' $� $2 $2 340 $14 a c $12 330 sCi om $10 $7 320 $8 310 $6 300 $4 $ $7 $2 $5 $5 290 $0 280 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 ,FMS -Risk Mgmt Budget Capital Services Office Services aMailroom Square Mileage ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9778 To the Mayor and Members of the City Council July 28, 2015 r� Page 4 of 5 �i �i7 Y •a SUBJECT: 15 YEAR BUDGET HISTORY — FINANCIAL MANAGEMENT r0K?CL SERVICES It should be noted that changes to the Risk Management budget are mainly attributable to legal and claim costs which fluctuate based on the number of claims and lawsuits filed against the City. Other significant changes to the department, both in authorized positions and budget, are noted below. FY2002 — The Risk Management Department was eliminated and the Property and Casualty Fund functions merged into the Finance Department as the Risk Management Division. While the budget is maintained separately in the Risk Management Fund, the five APs in Risk were transferred into the General Fund — Finance Department. This was offset by the transfer out of three Intergovernmental Affairs and Grant Management positions. FY2003 —Authorized positions increased by two for the addition of an office assistant in the Administrative Division and a senior customer service representative in the Treasury Division-Revenue Office. FY2004 — Eliminated four vacant positions including a buyer, a senior accountant, an office assistant position and a risk management analyst. FY2005 — Authorized positions increased due to the addition of two positions, a senior administrative assistant and an office assistant. The adopted budget decreased by ($996K) for Information Technology costs which was based on a new funding strategy to more equitably distribute costs citywide. One AP was added to the Risk Management Fund. FY2007 - The adopted budget increased by $488K due to increased salaries associated with the City's compensation plan and the addition of three positions in the Accounting Division to improve supervisory oversight and efficiency in the department. These additions include an accounting manager, a financial reporting coordinator, and a senior accountant. Three overage positions, a purchasing supervisor, a senior accountant, and IT analyst, were converted to permanent. FY2008 - The adopted budget increased due to the implementation of the Accounting Reorganization- Phase II. This reorganization included the addition of two senior account clerks, three senior accountants, and one accounting services supervisor. The Records Management Division was transferred to the City Manager's Office. This transfer included four APs and all associated funding. Additionally, one assistant chief accounting officer position was eliminated and a risk management analyst position was added to strengthen subrogation activities. FY2009 - The adopted budget increased by $1.7M as a result of the merger of the Budget and Management Services Department with the Financial Management Services Department. This transfer included 17 APs responsible for budget research, development and re-estimates, capital projects coordination and management, budget systems administration (CPMS and BRASS), and utility management and coordination. The adopted budget increased by $700K and a total of ten new APs including a senior accountant and a senior account technician who will be responsible for gas well management within the department; two contract compliance specialists and a purchasing/contracts supervisor for the newly created Contract Compliance Section within Purchasing; and five accounting staff positions added to support the development of the Comprehensive Annual Financial Report (CAFR). The Risk Management Division was transferred from the General Fund into the Risk Management Fund, which shifted $473K from Financial Management Services General Fund to the Risk Management Fund. This ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9778 To the Mayor and Members of the City Council July 28, 2015 r� Page 5 of 5 �i �i7 Y •a SUBJECT: 15 YEAR BUDGET HISTORY — FINANCIAL MANAGEMENT r0K? SERVICES transfer consolidated all risk management functions within a centralized fund. Lastly, a senior administrative assistant was transferred to the Economic and Community Development Department for Public Improvement District (PID) management. FY2010 - The adopted budget decreased by ($2M) due to the transfer of the Budget and Research Division and Budget Systems to the City Manager's Office. The Capital Projects Team was transferred to the Capital Projects Service Fund. One AP in Utility Management was transferred to the Law Department, for a total transfer out of 17 APs. The adopted budget decreased by ($368K) for the reduction of four APs including a financial services manager, administrative secretary, buyer and senior accountant. FY2011 - The adopted budget decreases by ($442k) and six APs for the deletion of a senior accountant, accountant, administrative technician, customer service representative II, IT manager and a senior IT programmer analyst as part of City-wide reductions. The adopted budget increased by $1.3M for staff augmentation during implementation of the ERP system, $450K for bank fees and $380K for staff augmentation to support the publication of CAFR. FY2012 - The adopted budget increased by seven APs for financial management services positions restored from prior year or newly created positions including an accountant, senior accountant, senior IT analyst, IT manager, buyer, accounting services supervisor and one financial coordinator. FY2014 - The adopted budget increased by $1M and nine APs due to the transfer in of the budget and research division. The adopted budget increased by $339K and five APs for the conversion of five overage positions to permanent status. However, the cost of these positions is completely offset by a reduction in contractual services budget. The adopted budget increased by $232K and three APs for the transfer in of the mailroom function from the Office Services Fund. The adopted budget decreased by ($111 K) for the elimination of one financial services manager. FY2015 - Authorized positions increased by four for staff to supplement the existing Accounting and Financial Reporting teams with the annual audit and publication of the CAFR as well as working on process improvements across the department. Costs for these positions were offset by reductions in professional services associated with the production of the City's CAFR. The Office Services Fund transferred to the City Manager's Office for management along with six APs. The budget decreased slightly for the reduction of two accountants in exchange for the addition of one senior accountant. The adopted budget increased by $1.2M for the transfer in of the contract for the CAFR audit from the City Auditor's office. Hopefully you find this information helpful. If you have any questions, please call Aaron Bovos, Financial Management Services Director at 817-392-8517. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS