The Fiscal Year (FY) 2018 budget was adopted by Council on September 13, 2017. This is the first amendment for the FY2018 Town of Addison annual budget.
Each year, Finance staff reviews the budget to determine which items should be recognized with formal budget amendments. When budget variances occur that are outside of the authority of the City Manager these adjustments are presented to the council in the form of a budget amendment.
As part of the adopted FY2017 budget, the Town hired Public Sector Personnel Consultants to conduct a certification pay study to determine which of the Town’s 13 comparison cities provide additional pay for employees who hold various certifications and licenses that demonstrate job knowledge, experience and expertise. These comparison cities are Allen, Carrollton, Coppell, Farmers Branch, Flower Mound, Frisco, Grapevine, Irving, Lewisville, McKinney, Plano, Richardson and University Park.
However, the results of the study created additional questions regarding which certifications were required as part of each position’s job responsibilities compared to those certifications that may be preferred. Staff determined that a complete classification and compensation study was needed to review the duties of each position, the experience, education and certifications required, as well as review each position’s salary competitiveness in relation to our comparison cities. The last classification and compensation study was completed in FY2013.
Public Sector Personnel Consultants completed the study and shared the results of the salary survey, recommendations for salary adjustments and certification pay with Council on December 15, 2017. A phased approach was recommended and was approved by Council. Phase 1 compensation adjustments were reflected on the first pay period (January 19, 2018) following formal action. While compensation adjustments were not retroactive, certification pay awarded was retroactive to June 1, 2017.
The total increased cost for salary and benefits of Phase 1 of the compensation study, not including certification pay, was almost $680,000 for all funds. The cost of the certification pay adjustment was approximately $84,000. The increases for both compensation and certification pay were absorbed by the departments through other operational line item reductions.
For the General Fund this amendment also reflects the Fire Department’s successful efforts toward receipt of a local grant from the Metrocrest Hospital Authority. An amount of $81,294 was awarded to the Fire Department to purchase two stretcher loading systems, a chest compression system, and three laryngoscopes. The chest compression systems will allow the Fire Department to outfit the reserve ambulance with the same equipment as front-line ambulances. The laryngoscopes are the latest, most preferred tools for intubation in Advanced Life Support. On March 2, 2018 Mr. Charles Heath, CEO of the Metrocrest Hospital Authority, awarded the Addison Fire Department a check in the full amount requested.
On September 29, 2017, City Council amended the FY2017 General Fund budget to move $1,047,000 to the Self-funded Projects fund for HVAC and Elevator replacements at the Addison Athletic Club. Revisions to the project were presented to Council on February 13, 2018. This amendment would add $95,000 to that project budget.
In the Hotel Fund, the fire alarm system at the Conference Centre was to be replaced in FY2017. The contractor that was awarded the work informed the Town at the beginning of September, 2017 that they would be unable meet the previously agreed upon deadlines. The agreement was canceled, and the project was re-bid. Funding, however, was not planned for in FY2018. This budget amendment will take $99,000 from fund balance to pay for the Conference Centre fire alarm replacement in FY2018.
The FY2018 Airport Fund Capital Improvements Budget needs to be amended. City Council initially directed staff to procure cost estimates for customs and border facility design in October 2016. Council approved a contract with Page Southerland Page, Inc. to conduct a site analysis and provide facility cost estimates in February 2017. A contract was awarded to Page Southerland Page, Inc. for design of the Addison Airport Customs facility on January 4, 2018 at a cost of $857,663. This amount exceeds the FY2018 budget for the project by $572,663. Because of delays in the awarding of federal airport improvement grants, funds budgeted for grant matches are not needed this fiscal year. Below is a summary of the budget amendment by fund:
| Fund |
Amount to be Reclassified |
Impact on Budgeted Expenditures |
Impact on Budgeted Revenues |
Impact on Fund Balance |
| General Fund |
$617,141 |
$81,294 |
$81,294 |
($95,000) |
| Hotel Fund |
$53,687 |
$99,000 |
- |
($99,000) |
| Self-Funded Project Fund |
- |
$95,000 |
$95,000 |
- |
| Airport Fund |
- |
($39,777) |
- |
$39,777 |
| Economic Development Fund |
$10,656 |
- |
- |
- |
| Stormwater Fund |
$4,347 |
- |
- |
- |
| Utility Fund |
$69,451 |
- |
- |
- |
The attachments reflect the details of the proposed budget changes by fund in the ordinance and budget amendment summary. |