The mission of the Personnel Department is

AGENDA #7

FEBRUARY 23, 2001

HUMAN RESOURCES DEPARTMENT

INITIAL BUDGET PRESENTATION TO THE MAYOR AND COUNCIL

FISCAL YEAR 2001-2002

The mission of the Human Resources Department is:

· to manage programs for the employees of the Town of Chapel Hill,

· to provide data to the Manager, Council, departments and the public concerning employee salaries and benefits,

· to provide assistance to departments in developing and maintaining a qualified and effective work force, and

· to assist in the administration of policies that are fair and in compliance with laws and ordinances.

Brief services description:

Services are provided to 551 full-time, 70 part-time and 400-500 temporary employees in 13 departments. Some of the services include:

· recruitment, application screening, and communication with applicants

· benefits and salary cost estimates and data base for budget

· benefits program communication and administration

· advice and legal compliance

· employee recognition and appreciation events

· employee relations / grievance policy administration

· payroll and record-keeping

· safety, health, and wellness

· classification and pay plan and policy administration and communication

Departmental Revenue Estimates: No revenue generated.

Departmental Base Budget Estimates:

	1999-2000 Actual	Original 2000-2001	Revised 2000-2001	Estimated 2000-2001	Requested 2001-2002	% change over original budget
Personnel	$401,802	$412,786	$412,786	$412,070²	$427168	3.6%
Operating	$135,585¹	$95,368	$100,596	$95,592³	$98,234	3%
Capital	$4,425	-	-	-	0	-
Total	$541,812	$508,154	$513,382	$507,662	$525,152	3.5%

1 FY 1999 - 2000 budget included $50,000 for classification and pay study, and $15,000 for consultant on improving work standards. Neither item is budgeted in 2000-2001

2. Similar staffing and service levels are recommended as in past years. Previous full-time Safety and Wellness Coordinator position is now half time; the other half of the position is Safety Officer for Public Works

3. Major recurring non-salary expenditures are for employee services, such as

- Employee Assistance Program contract

- employee recognition and appreciation activities

- medical program oversight

Key Programs or Services that are Going Well:

· The new pay plan and 75^th percentile labor market policy implemented this year are showing good results:

- turnover in the first half of the year has dropped 20%, from 12.6% last year to 10.1% this year (similar to rate in 1997)

- number of applications is up 45%, from 1152 last year to 1672

- departments report that they are filling more positions with good quality applicants on the first offer, and we are conducting fewer second or third recruitments

Challenge: to recommend a salary increase plan that is affordable, competitive and maintains the integrity of the system implemented.

Key Programs or Services that Could Be Improved/Concerns:

· Determine the impact of potential OSHA (Occupational Health and Safety) ergonomics regulations due for implementation in September – the work and time required for all steps in the regulations could be extensive

· Continue recruitment efforts using the internet, and using on-line capabilities for applicant communications

· Staff transitions with the retirement of a key staff member responsible for salary and benefits programs and budget estimates

Proposed Additions (or Reductions) :

Add: Our top priority is support for the Finance Department’s request for an additional 7.5 hours of time added to a part-time Payroll Clerk position in the Finance Department.

·advantage to Finance: allows Finance more time to deal with the increasingly complicated and time-consuming requirements for payroll and financial reporting; provides time for a more logical reassignment of tasks currently performed in HR that are related to billing, tax and financial reports and deductions

· advantage to Human Resources: more time in HR for dealing with employee benefits problems and Workers’ Compensation case management.