Structural Financial Task Force Historical Expenditure Overview

Transcription

1 Structural Financial Task Force Historical Expenditure Overview March 2011 DRAFT 1

2 Overview Common understanding of the historical General Fund expenditure trends. City and County of Denver s General Fund expenditure breakdown and growth rates: Departmental Expenditures Expenditure Type (non-personnel and personnel) Methods the City has implemented to expand and reduce General Fund expenditures. Identify major cost drivers: Number of FTE s Personnel Costs Uniform/CSA Employees <#> DRAFT 2

3 Agenda 1. General Fund Expenditure Trends What is the growth rate of General Fund expenditures from 1980 to 2011? What has caused General Fund expenditures to fluctuate from 1980 to 2011 How has Denver s General Fund per capita expenditures changed from 1980 to 2011? 2. Departmental Expenditures 3. Non-Personnel Expenditures 4. Personnel Expenditures 5. Discussion <#> DRAFT 3

4 Note on Historical Expenditures Slides Historical expenditure numbers have been adjusted for inflation and are shown in 2010 inflation-adjusted dollars. These adjustments allow a more accurate comparison of historical expenditures in relation to today s expenditures apples to apples. Actual expenditure data are shown as a solid line in graphs; inflation-adjusted data are shown as an area chart. Inflation rates are based on Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. CAGR is the compounded annual growth rate ((present year/past year)^(1/n)-1) where n = number of years between past and present years. CAGR identifies the average annual growth per year. All expenditures are based on actuals reported in the budget book. <#> DRAFT 4

5 General Fund Expenditure Trends $1,000,000 $900,000 $800,000 General Fund Expenditures ($'s in Thousands) 0.25% CAGR since 01 inflation adjusted $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ In 2010 Inflation Adjusted Expenditures Actual Expenditures 1.66% CAGR since 01 actual dollars Revised 2011 Projected Once adjusted for inflation, total General Fund expenditures have increased one-quarter of one percent per year for the past 10 years. Sources: Expenditure data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 5

6 General Fund Expenditure Trends General Fund Expenditure Increases Between General Fund expenditures grew by $250M (actual dollars) or 8.31% (CAGR) primarily due to: New/Expanded Services Implementation of Technology Services. Expanded parks and open spaces acres. New Parks Programs. Hazardous Waste Response Team. Expansion of safety personnel and equipment. Expanded trash and recycling collection. Expanded court services and Domestic Violence Task Force. Added additional sheriff deputies. Infrastructure, Maintenance and Equipment Replacement Citywide Geographical Information System Increased street repair Increased sign replacement and fiber optics installation Capital Improvement Transfers 1998 to 2001 $103.1M spent one-time capital improvement projects. T h o u s a n d s $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Strong Economic Growth Years ($'s in Thousands) Inflation Adjusted Dollars Acutal Dollars <#> DRAFT 6

7 General Fund Expenditure Trends Transfer to Capital Improvement Fund from $11,728, $20,288, $45,562, $25,500, $8,575, $1,156,100 $112,809,600 The Capital Improvement Fund Transfer was a policy decision to spend excess General Fund dollars on critical one-time infrastructure needs. <#> DRAFT 7

8 General Fund Expenditure Trends General Fund Expenditure Reductions Between General Fund expenditures decreased -$37M (actual dollars) or -2.55% CAGR Service Reductions Reduced recreation hours and recreational programs. Reduction in Denver Public Library hours. Eliminated recycling routes. Infrastructure, Maintenance and Equipment Replacement A 40 percent reduction in fleet replacement. Reduced traffic signal construction. Reduced street sweeping per week. Eliminated street resurfacing for an entire year. Personnel and Salaries Implemented 1-A compensation changes. Required furlough days and implemented a hiring freeze. Reduced workforce of both CSA and Safety personnel. No merit increase for CSA employees. T h o u san d s $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 General Fund Reduction Years ($'s in Thousands) Inflation Adjusted Dollars Actual Dollars <#> DRAFT 8

9 General Fund Expenditure Trends General Fund Expenditure Increases Between General Fund expenditures grew by $98.3M (actual dollars) or 6.42% (CAGR) primarily due to: Added back many of the reductions from New/Expanded Services Expansion of new record keeping technology. New nuisance abatement program and safety equipment. Additional trash and recycling routes. Expansion of safety personnel and equipment. Civilian crime analysis team. Independent Monitor and Oversight Board. New Parkfield Fire Station. Funding for the Crime Prevention and Control Commission. Infrastructure, Maintenance and Equipment Replacement Paved unpaved alleys. Increased street maintenance. Citywide equipment replacement. T h ou san d s 1,000, , , , , , , , , ,000 Strong Economic Growth ($'s in Thousands) Inflation Adjusted Dollars Actual Dollars <#> DRAFT 9

10 General Fund Expenditure Trends General Fund Expenditure Reductions Between the City has solved a combined $346M gap between revenues and projected expenditures. This is approximately 13 percent of the budget each year. The total General Fund budget grew $25.5M (actual dollars) or 0.97% (CAGR) between 2008 and Service Reductions Reduce hours at 18 branch libraries and the Central Library. Reduced Denver8 programming to public meeting coverage and select programming. Reduction in operating hours for 311. Infrastructure, Maintenance and Equipment Replacement Deferred mobile data terminals, PC s and radio replacement. Deferral of chip seal program. Personnel and Salaries A five percent reduction in General Fund workforce. Required furlough days. Deferment of wage increases for police, fire and sheriff. In 2010, CSA employees and members of Cabinet did not receive a wage increase. Mandated police officers to take time off for unused leave instead of payouts the City and County of Denver has maintained a 10 percent fund balance. In 2010 the City and County of Denver received a AAA General Obligation bond rating from Standard and Poor s, Moody and Fitch <#> DRAFT 10

11 General Fund Expenditure Trends Past 30 Years Past 20 Years Past 10 Years ( ) ( ) ( ) Compounded Annual Inflation-Adjusted Growth in 2010 dollars 1.30% 1.59% 0.25% Compounded Annual Actual Growth 4.28% 4.20% 1.66% Sources: Expenditure data obtained from Budget & Management Office budget books. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 11

12 General Fund Expenditure Trends Denver Population, , , , , , , , , , , % CAGR 610, Source: U.S. Census Bureau. Green bars represent the census counts (except 2009), while the maroon bars represent the estimates from the Census Bureau. As Denver s expenditures have increased slightly, Denver s population has also grown over the same time frame. Compared to 2000, Denver s population has grown by 9.75% in total. Denver s compounded average annual growth rate in population for 9 years has been 1.04% per year. <#> DRAFT 12

13 General Fund Expenditure Trends Per Capita Expenditures $1, % CAGR since 01 inflation adjusted $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Inflation Adjusted Dollars Acutal Dollars 0.98% CAGR since 01 actual dollars Increases from primarily due to significant transfers to fund capital improvement projects. Using inflation adjusted dollars, 2011 per capita is below 99 levels. When controlling for inflation and population growth, the City and County of Denver has reduced its per capita spending by 0.43% annually. The data do not take into consideration capital improvement fund transfers from Sources: Expenditure data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics <#> DRAFT 13

14 General Fund Expenditure Trends Denver's General Fund Per Capita Expenditures, (Using 2010 Inflation-Adjusted Dollars) 10% Per Capita Expenditures Indexed to 2011 Capital Improvement Funds Included 0.00% = 2011 levels 8% 6% 4% 2% 0% % -4% Sources: Expenditure data obtained from Budget & Management Office budget books. The 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. Population data obtained from the US Census Bureau through 2009; population is estimated for 2010 by applying the compounded annual growth rate from 2000 to 2009 (1.04%) to the 2009 population figure. Denver specific population data from the 2010 census are not available as of January, 20, Using inflation adjusted dollars, the 2010 General Fund per capita expenditures were 4% less than what the per capita expenditures were in These are based on operating expenses only, and do not include the capital improvement fund transfers from If capital improvement fund transfers are included, the decrease is 8% compared to <#> DRAFT 14

15 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures What is the General Fund s departmental composition? Which departments drive General Fund Expenditures? 3. Non-Personnel Expenditures 4. Personnel Expenditures 5. Discussion <#> DRAFT 15

16 Departmental Expenditures <#> DRAFT 16

17 Departmental Expenditures Department Composition as Percentage of General Fund Budget 100% 90% 80% 70% 60% 50% 2.76% 2.69% 2.06% 3.55% 7.65% 5.01% 6.85% 7.69% 9.05% 12.22% 8.95% 11.61% 15.25% 16.03% 0.03% 1.15% 0.45% 3.29% 1.96% 2.93% 5.36% 5.37% 3.32% 3.20% 5.97% 4.50% 8.10% 7.54% 5.69% 4.87% 10.89% 12.20% 9.25% 9.77% 40% 30% 20% 40.83% 47.81% 44.38% 49.78% 10% 0% Safety P ublic Wo rks P arks and R ecreatio n/ Cultural Facilities D enver H o spital/ P ublic H ealth General Services/ C o mmmunity P lanning & D evelo pment D epartment o f F inance/ R evenue General Administratio n Independent A gencies T echno lo gy Services Lease P ayme nts T ra nsfer to C apital Improvement F und Eco no mic D evelo pment Sources: Expenditures data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 <#> expenditures are estimated. Transfers for programs are located DRAFT within the department s budget. 17

18 Departmental Expenditures 2010 Inflation Adjusted Expenditures by Dept, ($'s in Thousands) $1,000,000 $900,000 Transfer to CIP '98-'03 totaling $112.8 M and $5.6 M in '06 in acutal dollars $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Public Works Department of Safety Parks & Rec Safety Public Works Parks and Recreation/Cultural Facilities Denver Hospital/Public Health General Services Department of Finance/Revenue General Administration Independent Agencies Technology Services Economic Development Community Planning and Development Environmental Health Transfer to Capital Improvement Fund Sources: Expenditures data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT

19 Departmental Expenditures Department Composition as Percentage of Budget : Safety increased 8.95%. Between 1994 and 2011 Safety personnel has grown by 321 (FTE) or 11.53%. Denver Hospital decreased 7.35%. Public Works decreased 6.26%. Department of Finance decreased 3.15%. Parks and Recreation/Cultural Facilities decreased 2.36%. Technology Services was established in TS was originally named Information Services housed within General Services. Economic Development was established in Lease Payments are approved by City Council and payments fluctuate depending on repayment schedule. Source: FTE data was obtained from Budget & Management Office budget books from Budget books prior to 1994 combined both CSA and Uniform employees into a single citywide FTE count. <#> DRAFT 19

20 Agenda 1. General Fund Expenditure Trends 2. Departmental Composition 3. Non-Personnel Expenditure - Overview 4. Personnel Expenditures 5. Discussion <#> DRAFT 20

21 Expenditure Type Expenditure type is categorized by the following: Personnel: Consists of all Career Service and Uniform employees salaries, benefits, workers compensation, pension, and federal insurance contributions for both permanent and temporary employees. Services and Supplies: Consists of contracts, services, utilities, lease payments, building materials, health supplies, and automotive necessities. Equipment Replacement: vehicles, maintenance and technology equipment. Internal Services & Transfers for Programs: Services or materials provided by one City agency to another. Workers Compensation Insurance Vehicle fuel, maintenance and repair Cultural Operating Transfer (DMNS, Botanic Gardens Art Museum, Zoo) Center Complex Operating Transfer Lease Payments: A form of financing which allows the purchase of an asset over time. <#> DRAFT 21

22 Expenditure Type Expenditure Type as Percentage of Total Budget % 90.00% 80.00% 70.00% 8.00% 1.00% 11.10% 22.00% 20.61% 0.95% 0.11% 6.38% 1.96% 7.42% 2.16% 22.43% 5.64% 19.76% 1.86% 60.00% 50.00% 40.00% 30.00% 69.00% 67.34% 61.49% 70.78% 20.00% 10.00% 0.00% Personnel Services Services & Supplies New & Replaced Equipment Internal Services Transfer to CIP Lease Payment Personnel expenditures increase as a portion of total GF expenditures from 2000 to 2011 primarily due to two reasons: 1. Year 2000 had large expenditures for Capital Improvement Projects that artificially deflated personnel expenditures in Personnel expenditures, despite having roughly the same FTE counts in 2000 as in 2011, have grown faster than other parts of the budget over the past 11 years. The increase in personnel is attributed to increased employee health benefit costs and other employee related costs. <#> DRAFT 22

23 Expenditure Type Thousands $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Internal Services 2010 Inflation Adjusted Expenditures by Type ($'s in Thousands) New & Replace Equipment $112.8M Capital Improvement transfer from and $5.7M in 2006 (actual dollars) Personnel Services Services & Supplies Lease Payments Sources: Expenditure data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics Rev 2011 Proj. Personnel Services Services & Supplies New & Replaced Equipment Internal Services Transfer to CIP Lease Payments Increases in personnel expenditures from 2000 to 2011 was partially due to the implementation of Technology Services, Economic Development and the expansion of Community Planning and Development. Employee health insurance costs and other employee related costs increased significantly over this period and offset reductions in expenses made from reducing FTE. <#> DRAFT 23

24 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures 3. Non-Personnel Expenditures Supplies and Services 4. Personnel Expenditures 5. Discussion <#> DRAFT 24

25 Thousands $250,000 $200,000 $150,000 $100,000 $50,000 $ Non-Personnel Expenditures (Services and Supplies) Services and Supplies ($'s in Thousands) Inflation Adjusted Actual Expenditures -0.63% CAGR since 01 in inflation adjusted dollars 0.77% CAGR since 01 in actual dollars Sources: Expenditure data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics Rev 2011 Proj. Since 2001, inflation-adjusted expenditures for services and supplies have decreased by 0.63% each year over the past 10 years. Using inflation adjusted dollars, services and supplies expenditures are below the 1999 levels <#> DRAFT 25

26 Non-Personnel Expenditures (Services and Supplies) Past 30 Years Past 20 Years Past 10 Years ( ) ( ) ( ) Compounded Annual Inflation-Adjusted Growth in 2010 dollars 0.93% 1.44% -0.63% Compounded Annual Actual Growth 3.91% 4.05% 0.77% As noted on the previous slide, growth in services and supplies have been reduced significantly over the past 10 years compared to growth during the 1990s. Sources: Expenditure data obtained from Budget & Management Office budget books. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 26

27 *Medical Services Non-Personnel Expenditures (Services and Supplies) 2011 Services and Supplies Expenditures 27.28% Repair & Maintenance 3.28% Utilities 18.70% Guard Escort & Alarm 1.91% Professional Services (contractors, legal, banking, printing etc.) 14.29% Insurance 1.55% Supplies and Materials 15.53% Lease/Rent 1.22% Computer Software Maintenance/Equipment/Services 7.26% Percentage of Services and Supplies 100% Miscellaneous 4.66% Total (dollar) $177,300,400 Disposal and Janitorial Services 4.32% *69.28% of the 27.28% for Medical Services is a General Fund payment to Denver Health for medically indigent services and other services. The remaining 30.72% is used for inmate medical care and treatment. <#> DRAFT 27

28 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures 3. Non-Personnel Expenditures Equipment 4. Personnel Expenditures 5. Discussion <#> DRAFT 28

29 Thousands $35,000 $30,000 $25,000 Non-Personnel Expenditures (Replacement Equipment) New & Replaced Equipment ($'s in Thousands) In 2001, an increase of $10.4M in fleet replacement over 2000 $20,000 $15, CAGR since 01 inflation adjusted $10,000 $5, % CAGR since 01 in Actual Dollars $ Inflation Adjusted Dollars New & Replaced Equipment Rev 2011 Proj. Fleet replacement fund was established in 1992, and implemented in Technology replacement transfer was established in Historically, equipment replacement expenditures have been reduced during recessionary periods. Continuing to defer equipment replacement could negatively impact the City s viability in future years. Using inflation adjusted dollars, equipment replacement spending is at 1998 levels <#> DRAFT 29

30 Non-Personnel Expenditures (Replacement Equipment) Past 30 Years Past 20 Years Past 10 Years ( ) ( ) ( ) Compounded Annual Inflation-Adjusted Growth in 2010 dollars 3.42% 4.39% -5.62% Compounded Annual Actual Growth 6.46% 7.07% -4.29% Sources: Expenditure data obtained from Budget & Management Office budget books. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 30

31 Non-Personnel Expenditures (Replacement Equipment) 2011 Replacement Capital Expenditures Information Technology 63.71% Vehicles, Trucks, etc. Trailers, Mowers, Snow Removal Equipment, etc. Total (percentage) Total (dollar) 32.62% 3.67% 100% $16,697,400 <#> DRAFT 31

32 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures 3. Non-Personnel Expenditures Internal Services 4. Personnel Expenditures 5. Discussion <#> DRAFT 32

33 Non-Personnel Expenditures (Internal Services) 2010 Internal Services & Lease Payment Expenditures ($'s in Thousands) Thousands $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ % CAGR since 01 in inflation adjusted (internal services) % CAGR since 01 in actual dollars (internal services) Rev 2011 Proj Internal Services Inflation Adjusted Lease Payment Actual Expenditures Internal Services Actual Expenditures Sources: Expenditure data obtained from Budget & Management Office budget books. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 33

34 Non-Personnel Expenditures (Internal Services Lease Payments Excluded) Past 30 Years Past 20 Years Past 10 Years ( ) ( ) ( ) Compounded Annual Inflation-Adjusted Growth in 2010 dollars 0.12% -1.17% -2.29% Compounded Annual Actual Growth 3.07% 1.36% -0.91% Sources: Expenditure data obtained from Budget & Management Office budget books. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. <#> DRAFT 34

35 Transfers for Programs Vehicle Maintenance and Mileage Workers Compensation Gas, Oil and Diesel Fuel Accident/Damage/Repair Copy Machine Charges Postage Charges Cellular Phone Charges Miscellaneous Total (percentage) Total (dollar) Non-Personnel Expenditures (Internal Services) 2011 Internal Services Expenditures Reimbursement for Utilities 33.19% 25.28% 19.58% 6.32% 5.60% 3.05% 2.06% 1.95% 1.41% 1.56% 100% $50,556,800 <#> DRAFT 35

36 Non-Personnel Expenditures (Transfers & Other Appropriations) 2011 Transfers and Other Appropriations General Fund Transfers: $16,389,600 Cultural Operating Transfer (DMNS, Botanic Gardens Art Museum, Zoo) Center Complex Operating Transfer Crime Control and Prevention Program Lease Payments: $17,561,100 Webb Building Convention Center Garage Blair Caldwell Library Human Services Center <#> DRAFT 36

37 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures 3. Non-Personnel Expenditures 4. Personnel Expenditures What is the growth rate in personnel expenditures from ? What are the reductions in the City s workforce in the past 10 years? 5. Discussion <#> DRAFT 37

38 Personnel Expenditures Personnel Expenditures ($'s in Thousands) $700,000 $600, % CAGR Since '01 inflation adjusted $500,000 $400,000 $300,000 $200,000 $100,000 $ In 2010 Inflation Adjusted Actual Expenditures 2.90% CAGR since 01 in actual dollars Revised 2011 Projected Sources: Expenditure data obtained from Budget & Management Office budget books. Expenditures are actual expenditures reported; 2010 and 2011 expenditures are estimated. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. Growth in inflation-adjusted personnel expenditures has increased 1.47% each year for the past 10 years. <#> DRAFT 38

39 Personnel Expenditures Past 30 Years Past 20 Years Past 10 Years ( ) ( ) ( ) Compounded Annual Inflation-Adjusted Growth in 2010 dollars 1.38% 1.74% 1.47% Compounded Annual Actual Growth 4.37% 4.35% 2.90% Sources: Expenditure data obtained from Budget & Management Office budget books. CSA and Uniform employees are combined in the above Compound Annual Growth Rates. Inflation rates are calculated in 2010 dollars derived from Denver metro-area Consumer Price Index data obtained from the U.S. Bureau of Labor Statistics. From 2001 to 2009, total personal income in Colorado grew at a 3.61% compounded annual growth rate (most recent available actuals ). From 2001 to 2009, the City of Denver actual personnel expenditures grew by 3.64% (CAGR).* Source: U.S. Census Bureau, The National Data Book. *Important Note: was identified in this comparison because the U.S. Census Bureau has yet to publish the 2010 and 2011 statistical data for personal income growth. <#> DRAFT 39

40 Personnel Expenditures Number of CSA and Uniform Employees , , , , , , , , , % CAGR since 01 (CSA) 0.20% CAGR since 01 (Uniform) CSA Employees 3, , , , , , , , , , , , , , , , , ,110.0 Uniform Employees 2, , , , , , , , , , , , , , , , , ,106.0 Source: FTE data was obtained from Budget & Management Office budget books from Budget books prior to 1994 combined both CSA and Uniform employees into a single citywide FTE count. Increase in FTE s from 2000 to 2002 was primarily due to expansion of Technology Services, Economic Development and Community Planning and Development. From 2009 to 2011 the General Fund reduced a total of 338 FTE s across all departments. CSA FTE count is lower than the 2000 count. <#> DRAFT Rev 2011 Proj.

41 Personnel Expenditures 2010 Workforce Reductions: In 2010 the workforce was reduced by 217 General Fund positions and 493 positions across all funds Workforce Reductions: The General Fund has 7,216 FTEs (full-time equivalent positions) budgeted for 2011, of which 3,106 are uniform positions (police, fire, sheriff). In 2011, the workforce was reduced by 121 General Fund positions and 170 positions across all funds. The 2011 Career Service FTE count is lower than 2000 levels. The 2011 Uniform FTE count is at the same level as the 2007 FTE count. Citywide combined FTE s were reduced -0.22% (CAGR) between <#> DRAFT 41

42 Personnel Expenditures Total Compensation Composition 2011 Uniform CSA Regular and Other Compensation Health DERP, PERA and FPPA Social Security Life and Disability Unemployment Total 80.28% 9.96% 6.96% 1.81% 0.99% 0.00% 100% $314,914, % 10.84% 7.05% 5.77% 0.38% 0.24% 100% $320,092,000 <#> DRAFT 42

43 Personnel Expenditures Impact of Furloughs to CSA Merit Increases Salary Increases (%) 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% Police 3.00% 4.00% 4.00% 4.00% 0.00% 2.00% 3.00% 4.75% 4.75% 0.00% 4.50% 4.50% Fire 3.25% 3.25% 4.30% 4.00% 4.00% 2.00% 3.00% 4.00% 4.00% 0.00% 4.00% 5.30% Sheriff 3.25% 4.20% 4.20% 3.00% 3.00% 3.00% 4.00% 5.00% 4.50% 0.00% 4.00% 4.50% CSA Salary 7.70% 6.60% 4.80% -1.20% 2.30% 3.25% 3.25% 4.25% 0.65% -2.00% 0.20% 3.50% CPI 4.68% 1.90% 1.10% 0.11% 2.10% 3.60% 2.20% 3.90% -0.65% 1.90% 2.10% 2.90% Note: CPI for 2011 and 2012 are projections from the Colorado Legislative Council. Prior to 2005 CSA employees received a merit and cost of living adjustment. In 2005 the cost of living adjustment was eliminated and in its place a sliding scale system was implemented. Employees continue to move up the range but do not receive a cost of living adjustment. If an employee slides off the new range, he or she is bumped and as a result receives a pay adjustment. <#> DRAFT 43

44 Agenda 1. General Fund Expenditure Trends 2. Departmental Expenditures 3. Non-Personnel Expenditures 4. Personnel Expenditures 5. Discussion <#> DRAFT 44

45 Appendix A: Sources City and County of Denver, 2009 Abstract of Assessment and Summary of Levies, 2010 BMO budget books, Colorado Department of the Treasury, 2010 Economic Policy Institute, Testimony before the Labor-HHS Education Subcommittee, Appropriations Committee, U.S. House of Representatives, February 15, 2007 Economic Policy Institute, For Job Seekers, No Recovery in Sight: Briefing Paper #259, March 31, 2010 National Bureau of Economic Research, U.S. Business Cycle Expansions and Contractions, September 20, U.S. Bureau of Economic Analysis, Personal Consumption Expenditures, 2010 U.S. Bureau of Labor Statistics, Denver metro-area Consumer Price Index data, 2010 U.S. Bureau of Labor Statistics, 2005 Consumer Expenditure Survey U.S. Census Bureau, Monthly Retail Trader Survey, Third Quarter 2010 U.S. Census Bureau, Denver census data, 2010 <#> DRAFT 45

46 Appendix B: Key Terms (continued) Actual Dollars: Dollar values in other time periods, not converted into present day dollars. Does not take into account the effects of inflation Bureau of Economic Analysis: BEA is a bureau of the U.S. Department of Commerce. BEA produces economic accounts statistics that enable government and business decision-makers, researchers, and the American public to follow and understand the performance of the Nation's economy. CAGR: Compounded Annual Growth Rate is the year-over-year growth rate over a specified period of time. Capital Funds: A plan of proposed expenditures that results in the acquisition of or addition to fixed assets, and the means for financing the expenditures. CQGR: Compounded Quarterly Growth Rate is the quarter-over-quarter growth rate over a specified period of time. Enterprise Fund: Fund established for operations that are financed and operated in a similar manner as a private business and is funded through user charges. General Fund: The City s primary fund from which most city services receive funds. <#> DRAFT 46

47 Appendix B: Key Terms (continued) Full-time Equivalent: Ratio of total number of paid hours during a period by the number of working hours in a specified period (week). Indirect Costs: The cost not directly attributable to a product or service. Inflation-adjusted: A measure that accounts for the inflation rate over a given period. Infrastructure Priority Task Force: Internal Services: Services or materials provided by one City agency to another. Payments are made through an internal billings transfer Real Wages: Wages that have been adjusted for inflation. Special Revenue Fund: Any fund that must be devoted to a special purpose in accordance with specific regulations and restrictions. <#> DRAFT 47

48 Appendix B: Key Terms (continued) Lease Payments: Also called Certificates of Participation is a form of financing which allows the purchase of an asset over time through the approval of City Council. The City began this method of acquisition for certain types of assets in Replacement Capital (CAGR) (30 years): N/A (20 years): N/A (10 years): 35.75% <#> DRAFT 48

49 Note on Historical Expenditure Slides This analysis focused exclusively on General Fund expenditures only. General Fund: The City s largest funding source and resources are not legally restricted to a specific use. Major sources of revenues are sales and use tax, fines, fees, general government revenues, property tax, and occupational privilege tax. The following funding sources will not be addressed in this historical analysis: Enterprise Funds (e.g., Denver Int l. Airport) Internal Service Fund (e.g., Workers Comp) Special Revenue Fund (e.g., Human Services) Capital Funds (e.g., CIP Funds) For more information regarding these various funds, please consult Appendix B: Key Terms. <#> DRAFT 49