2021...position after January 1, 2006. 2008: Dependent subsidy no longer provided for those who...

2021Proposed Budget

City of Arlington, Texas

History of Healthcare

Current Employee Benefit Rates FY 2020

Health/RX Plan 10-Year Claim Cost Analysis

$12,758,665

$15,493,158 $16,042,244

$19,660,845$18,620,577

$19,766,948$18,973,951 $19,070,933

$20,184,781

$5,146,630 $5,642,224 $5,673,466$4,771,351 $5,186,045

$6,732,366$5,713,263

$7,793,621

$5,930,434

$17,905,295

$21,135,382 $21,715,710

$24,432,196 $23,806,622

$26,499,314

$24,687,214

$26,864,554$26,115,215

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

Employee Retiree Total

Historical Benefit Plan Changes (Employee)-Employee + Family on HDHP Plan used for reference*

2011 2012 2013 2014 2015

Eliminated

- Plus Medical Plan

Added

- $50 Urgent Care/$250 ER

Copays

- $0 copay for maintenance Rx

Changed

- Value plan became HDHP

- Core Plan became EPO

- Post-65 coverage moved to

UHC Medicare Solutions

Model

- 80.7% Employee Rate Change

Eliminated

- Separate $2,000 OOP for Rx

Added

- N/A

Changed- HDHP Deductible: $2,000/4,000

individual/family (up from

$1,500/3,000)

- HDHP OOP: $6,000/12,000


$5,000/10,000)

- EPO Deductible: $1,500/3,000


$1,000/2,000)

- EPO OOP: $6,000/12,000


$5,000/10,000)

- Rx co-insurance included in OOP

max

- No Employee Rate Change

- Wellness payout reduced to $200

Eliminated

- No significant changes

Added


Changed

- 3% Employee rate increase

Eliminated


Added


Changed

- No Employee rate increase

Eliminated


Added


Changed

- 10% Employee rate increase

$74.00/Month2

10/90 Split

4% Total rate increase1

$74.00/Month

8/92 Split

21% Total rate increase

$147.10/Month

10/90 Split

22% Total Rate Increase

$147.10/Month

10/90 Split


$81.40/Month

7/93 Split


1Represents total of employee and City rate contribution.2Monthly cost employee pays for plan; Monthly rate = Annual Rate/12 months

Historical Benefit Plan Changes (Employee)-Employee + Family on HDHP Plan used for reference

2016 2017 2018 2019 2020

Eliminated

- Compass Health Concierge

Added

- $25 tobacco user surcharge

(per pay period)

Changed

- 4.0% employee rate increase

- HDHP Deductible:

$2,250/4,500 individual/family

(up from $2,000/4,000)

- EPO Deductible: $1,750/3,500


$1,500/3,000)

- Increased wellness premium

differential to $20/pay period

Eliminated


Added


Changed

- No employee rate increase

Eliminated

- Coverage for spouses with

other available plan options

(through own employer or

otherwise)

Added

- UHC Virtual Visits

- OOP max of $6,850

- Compass Health Concierge

- Wellness premium

differential $15/pay period

Changed

- Specialty Rx filled by Optum

- EAP Changed from UHC to

Optum


Eliminated


Added

- 90-day retail pharmacy

program

- Rx medication strategic

exclusions

- Rx medication medical

necessity

Changed


Eliminated


Added

- Employee health clinic

opened (CareATC)

Changed

- EAP changed from Optum

to Prudential

- Rx benefits coordinated

through Navitus


1Represents total of employee and City rate contribution.2Monthly cost employee pays for plan; Monthly rate = Annual Rate/12 months

$156.13/Month2

10/90 Split

6% Total rate increase1

$164.88/Month

10/90 Split

11% Total rate increase

$176.11/Month

10/90 Split


$169.35/Month

10/90 Split


$176.11/Month

10/90 Split


Retiree Subsidy Amounts

OPEB Liability Reductions

2006: Subsidy no longer provided for retirees who

were hired, re-hired or transferred to a full-time

position after January 1, 2006.

2008: Dependent subsidy no longer provided for

those who retire after January 1, 2008.

2014: Subsidy amount changed from percentage-

based formula to flat rate amount.

2014: Age 65+ retirees automatically moved from

HDHP/EPO plan to UHC Medicare Connector

Model, by which Medicare becomes primary payor.

Historical Benefit Plan Changes (Retiree)-Retiree + Spouse with 20 years of service on HDHP 2020 plan used for reference*

*If over age 65, retiree moves to UHC Medicare Solutions Connector Model and City contribution amount is reduced by half.

Hired After 2006

Total Monthly Premium

City contribution (Retiree)

City contribution (Spouse)

Total Paid by City

Total Retiree Contribution

Split (Retiree/City)

Retired Before 2008 Retired After 2008

$1,254.04

$500.00

$250.00

$750.00

$504.04

40/60

$1,254.04

$500.00

$0

$500.00

$754.04

60/40

$1,254.04

$0

$0

$0

$1,254.04

100% Retiree

Example: Under 65 Retiree with 20 years of service*

Hired Before 2006

Other Post-Employment Benefits (Pay-Go)

▪ OPEB average annual growth of 1.40% from 2020 to the peak year in 2034.

▪ OPEB costs represent accrued amounts that are actuarially determined.

▪ Annual expenditures of $3.5 million for Retiree Health are budgeted in Non-Departmental.

Other Post-Employment Benefits (OPEB)

▪ What does it include?▪ Disability income plan

▪ Retiree health insurance

▪ Supplementary death benefits

▪ Where is OPEB information reported?▪ Comprehensive Annual Financial Report

(CAFR), “Statement of Net Position”

▪ Also footnote 7: Other Post-Employment Benefits

▪ “Pay-as-you-go” funding

▪ Council can establish or amend contribution requirements of the plan through the budget process

TMRS and OPEB

FY 2020 Compensation Adjustment

FY20 Budgeted Employee Compensation Increase

▪ 2% employee compensation increase budgeted in FY 2020

▪ $1.7M General Fund partial-year impact

▪ Planned effective date of April 6, 2020

▪ Governor Abbott declared Covid-19 State of Disaster March 13, state-wide stay-at-home order March 26


▪ April 14, presentation to Council ▪ Anticipated loss of

$13.1M in sales tax revenues

▪ Overall anticipated loss of General Fund revenues of $18.3M

▪ Raise frozen as part of “Phase 1”

• General Fund Phase 1 (March 13 actions)

• Freeze positions vacant 3/8 through EOY – $1M

• Suspend employee raise – $1.7M

• Freeze IT projects – $1.1M

• Lower fuel estimates/freeze vehicle purchases – $680,000

• Suspend Library book purchases – $500,000

• Delay PD/Fire Academies (scheduled for late summer) –$520,000

• Suspend sick leave sellback – $190,000

City of Arlington, Texas 22


▪ July 7, Council Retreat▪ Sales tax better than

initial “Covid-19” budget estimates by $3.2M

▪ Additional support for CES fund

13

• All funds still balanced• Most estimates tracking with 4/14

presentation to Council on C-19 impacts• Exceptions• Sales tax better than estimated on 4/14 by $3.2M

• Reduces need for additional one-time funds from Parks Gas revenues

• Esports lease revenues down $1M, requiring additional support in Convention and Event Services from General Fund


▪ Without suspending FY 2020 raise, FY 2021 budget would have required additional expenditure cuts of $3.4M

Property Tax Awareness

Exemptions

▪ Homestead – exempts 20% of value from taxes

▪ Over 65/Disabled person – exempts $60,000 of value

▪ Can be changed by ordinance

▪ Disabled Vet – tier of exemptions based on disability rating

▪ How do citizens apply?▪ Citizens apply directly with TAD for exemptions on their website

(tad.org) or in person

▪ Homestead – must own and occupy property as of Jan 1 of the tax year

▪ Over 65/ Disabled – can apply immediately upon qualification (with birth certificate or TAD’s Disability Form

▪ Disabled VET – can apply immediately with VA disability letter

Exemptions

▪ What are the deadlines? ▪ Generally, the application & documentation is due no later than April

30 of the year for which the exemption is requested

▪ How are citizens notified about applying?▪ TAD sends homestead application to all new homeowners

▪ Most homestead exemptions only need to be applied for once, but TAD may send letters to homeowners asking for them to verify that they still qualify

▪ Annual Property Value Notice from TAD to homeowners notes current exemptions and provides link to additional information

Homestead Exemption

▪ Homestead 20%▪ $2.7B in valuation

▪ $17M in property tax

▪ Change by ordinance

▪ Flat option▪ AG opines not currently authorized

▪ Legislative/constitutional change required

Outreach

▪ News on MyArlingtonTX

▪ “What to Know: Protesting Property Tax Values During COVID-19” (May 1, 2020)

▪ “Arlington City Council Takes First Look at Proposed $518 Million FY21 Operating Budget” (Aug. 5, 2020)▪ Presents available exemptions

▪ “May 15 Deadline to Protest 2019 Residential Property Tax Appraisals” (April 8, 2019)

▪ “Are You Getting All the Tax Exemptions You are Eligible for in Arlington” (April 23, 2018)

Initial Equity Efforts

City Services Bill Deposit Information

Total number of residential accounts with a

deposit with Arlington Water Utilities35,590

Total number of residential accounts that would

be eligible for a refund using 2018 criteria16,952

Total amount of deposits for those residential

customers$3,111,092

Total amount of deposits plus interest that are

eligible for a refund$1,313,054

Amount of deposit that could be refunded per

account$20 - $140

Deposit amounts vary by municipality.

Some examples:

▪ $75 Irving, Colony, Duncanville, Carrollton

▪ $100 North Richland Hills, Plano

▪ $140 Arlington

▪ $150 Fort Worth

▪ $200 Garland

Water Bad Debt & Meter Deposit History

Bad Debt Expense

2019 $338,557

2018 $289,996

2017 $252,310

2016 $223,195

2015 $265,281

Meter Deposits

2019 $6,684,711

2018 $6,050,867

2017 $5,659,072

2016 $5,429,337

2015 $5,351,204

Police Public Safety Towing Fee

▪ 9/14/2010 – Ordinance (10-071)

▪ $20 Fee per City-directed tow

▪ Remittance monthly to City

▪ Liable to remit fee after receiving payment (15 Days)

▪ Total monthly remittance shall not include vehicles sold at auction (auction vehicles are excluded)

▪ Police Public Safety Towing Fee set contractually between the Contract Towing Service and the City, Sec 3.08

Police Public Safety Towing Fee

▪ Historical Revenue: 2015 to 2020

FY Account DescriptionActual

CollectedIncidents

2015 41505 POLICE TOWING FEES $139,100 6,955





2020 41505 POLICE TOWING FEES $109,560 5,478 (up to June)

Parks and Recreation Build a Dream Funding HistoryYear General Fund CDBG Tomorrow

Foundation

Total

2010 $40,455 $50,000 $90,455

2011 $32,546 $50,000 $82,546

2012 $29,242 $29,242

2013 $29,495 $50,000 $79,495

2014 $29,495 $30,000 $59,495

2015 $29,053 $29,053

2016 $29,053 $29,053

2017 $45,121 $45,121

2018 $101,804 $101,804

2019 $78,471 $78,471

2020 $140,000 $78,471 $218,471

2021 – proposed $280,000 $280,000

COVID-19 Funding: Sustainability

Sustainability of COVID-19 Funding

▪ Funding that must be invested in COVID-19 response▪ Office of Justice Assistance – $479,605

▪ County CARES funding – $21,239,900

▪ CDBG-CV – $2,004,017

▪ ESG-CV – $991,890

▪ ESG-CV Round 2 – $2,977,176

▪ State Homeless Housing & Services Program – $9,786

▪ Funding without COVID-19 restriction▪ Airport (FAA) – $69,000

▪ Handitran & Via (FTA) – $10,955,694

Types of COVID-19 Investments

One-time investmentsOn-going COVID-19

investments

Longer term needs that may

exceed COVID-19 pandemic

• Engineering controls

• Health screening equipment

• Remote work capabilities

• Improvements to public access

to internet at and near City

facilities

• Testing/immunizations

• Jail screening

• Personal Protective Equipment

• Enhanced cleaning

• Public health communication

• Personnel dedicated to COVID-

19 response

• Federally required leave &

other employment related

expenses

• Business support programs

• Rent assistance

• Non-profit support

• Via expansion

• Expanded internet service at

public facilities

• Unemployment insurance

• Rent assistance

• Non-profit support

• Via expansion

• Expanded internet service at

public facilities

Fire Staffing

Fire/EMS Rising Service Demand

▪ Since 2010 - 2019▪ 39.84% increase in incidents

▪ (33,012 to 46,164)

▪ 30% increase in unit responses

▪ Unit responses flattening since 2017 due to expansion of LRV use

Fire Staffing Changes

Fiscal Year Title FTEs Amount

FY 2011 Firefighter Recruitment/EMT-1

Training

1 $187,343

FY 2012 Fire Staffing Station #17 12 Overtime shift

FY 2013 Gas Well Response Team 8 $789,470

FY 2015 SAFER Act Firefighters 4 $267,184

FY 2016 Sworn Firefighter Positions 18 Overtime shift

FY 2018 Increase Staffing for Stations 1 & 9

(Position Trade)

2 $246,383

FY 2019 Fire Prevention Staffing 1 $104,141

Station 17 Staffing 3 $247,597

FY 2020 Fire Academy Funding $851,397

Fire Prevention K9 Staffing 2 $161,306

ARFF Unit 3 $372,765

Budget Issue: Fire Department

▪ Fire Department Goal: Maintain current authorized positions by applying for a SAFER ACT grant with proposed conditions:▪ Fire Department has GF expenditure reductions of $938K

▪ CARES Funding

▪ Grant could sustain existing staffing levels

▪ May 2020 – Fire Department applied for a SAFER ACT grant ▪ Requested authorization to fund existing personnel due to COVID-19 impacts

▪ Requested funding for 14 positions

▪ July 2020 – FEMA announces SAFER ACT grant adjustments▪ No match for 2020 grant

▪ May cover existing personnel to prevent layoffs

▪ August 2020 – FEMA will announce SAFER ACT grant awards▪ Anticipate award announcements by late August

Strategies to meet increasing service demand

▪ The red highlighted area experiences extended response times as compared to other areas of the city.

▪ Lightweight Response Vehicles can quickly and effectively put firefighters on emergency scenes▪ LRVs address excessive call volume which allows

Heavy Front Line Vehicles to respond greater demanding resource incidents

▪ For the past several years the Fire Department has experienced increased service demands in the highlighted area. The pandemic precluded AFD funding request to address.

▪ The new squad unit could be based out of Fire Station 3 and assigned to this area or be staged at the City’s new POD facility to assist in pandemic initiatives while providing coverage in this service demand area.

Stormwater

Stormwater Positions

▪ 3 Stormwater positions are for the Environmental Management group within Stormwater Program.

▪ Group is responsible for protecting Arlington’s waterways from polluted stormwater runoff through Stormwater Compliance measures.

▪ New staff positions will assist in development and long-term management of both current and new programs required by the TCEQ Municipal Separate Storm Sewer System (MS4) permit that went into effect August 2019.

▪ New MS4 Permit included Post Construction BMP Inspection Program implementation.▪ Focus on working with private property owners for O&M of private Stormwater BMPs.

▪ Other new MS4 requirements include, but are not limited to:▪ Illicit Discharge Monitoring Program

▪ TMDL Monitoring Program and preventing discharges of pollutants of concern to impaired waterbodies

▪ Pollution Prevention and Good Housekeeping proper disposal of removed waste and structural maintenance program

▪ Construction Inspection Contractor Education and Training Program

Stormwater Positions

▪ 2 Stormwater positions are for the long-term management of the Comprehensive Stormwater Plan.

▪ Positions will work with all 5 groups of the Stormwater Program to incorporate program needs into Plan.

▪ Incorporate new data into the Comprehensive Stormwater Plan and provide updates.▪ Flood assessments

▪ Updating identified mitigation projects

▪ Removal of completed projects

▪ Infrastructure maintenance updates

▪ Provide engineering oversight for Stormwater Infrastructure OCIs.

▪ Provide oversight for Capital Project planning.

▪ Provide QA/QC of data to ensure accuracy and relevance of Plan.

Budget Communication

Budget Video

Social Media Posts

“Budget Savings In Action” Plan

▪ 5 live segments breaking down different components of the budget on Facebook, Twitter and Instagram

▪ 2 Budget Town Hall meetings that will be heavily promoted and provide residents with the ability to participate virtually

▪ 60 social media posts

▪ FY 2021 Budget webpage

▪ News releases

▪ Dream Team promotion

▪ E-Newsletter

▪ Neighborhood Network

2020 Budget Campaign by the Numbers

▪ Budget webpage

▪ Budget Video▪ 520,000 views

▪ 1,486,095 mins watched

▪ 24,768 hours watched

▪ 63 Social Media Posts▪ 720,000 reached

▪ 9 Facebook Live videos▪ 25,142 views

▪ 104% increase in reach and engagement over FY 2019

Park BasketballCourts

Park Basketball Courts

▪ Desired standard – 1 court per 12,000▪ Current inventory – 23▪ Current need – 10▪ Park courts absent north of I-30; remainder

evenly distributed

▪ Citizen response – >1200 survey respondents▪ Ranked 15th of 25 in satisfaction▪ Ranked 15th of 25 in importance

▪ @ $175,000 per single unlit court

▪ FY 2021 funding for courts was not requested

Discussion

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2021...position after January 1, 2006. 2008: Dependent subsidy no longer provided for those who...

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