| City overtime pay down in 2009 |
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Posted: Thursday, March 11, 2010 3:37 pm
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County News/FileWhile the Waseca Police Department made up the largest part of the city's overtime pay in 2009, the department utilized nearly $20,000 less in overtime pay than forecasted.
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By RUTH ANN HAGER
Staff Writer
WASECA — Waseca City Manager Crystal Prentice said four employees retired under the city’s Early Retirement Incentives plan last year. One of the positions, a full-time fire duty officer, was replaced and the other three — a line person, a utility person and an engineering technician — remained vacant.
Even with incentives and overtime in the two departments, the city saved $77,066 in personnel costs beginning in March 2009, according to Prentice.
“In 2010, we anticipate the three vacancies will save the City $220,995,” she said.
But the early retirements affected only two divisions, engineering and electric. Overall, costs went up because of the heavy snow year and health insurance, which increased by 36 percent.
“There were lots and lots of areas where costs are going up but those early retirements were still a savings,” Prentice said.
And overtime expense, although it decreased from 2008 to 2009, continues to be a budgeted item for city departments.
City Finance Director Teresa Walters said the city has used overtime because paying it is less expensive than hiring more employees and paying their salaries and benefits.
In 2009, overtime payments totaled $
Overtime in the city of Waseca in 2009 totaled $172,662, down from $212,036 paid in overtime in 2008.
In the general fund, including the police department, overtime totaled $99,513, down from $130,132 in 2008.
Combined overtime for water, wastewater, electric, water park, garage services and crime victims funds was $73,148 in 2009, down slightly from $81,904 in 2008.
Police budget>/b>
In 2009 the budget for the Waseca Police Department was $1,640,492.
According to Chief of Police Keith Hiller, his department came in under budget by $86,753 last year, even though revenue from fines, licenses and other sources totaling $264,369 went into the general fund, rather than the police department budget. That includes administrative fines of $17,956 that went to the general fund.
The police department tallied the highest amount of overtime of all city departments, a total of $43,205 in 2009. But Hiller’s 2009 overtime budget was $63,076, which means he came in under his overtime budget by $19,870.
“Anytime we can shave $20,000 off the overtime budget ... ” he said.
And the 2009 overtime total was also $20,677 less than the overtime cost of $63,872 paid in 2008.
Overtime is a “moving target” that they try to reduce through efficiencies, workload adjustments and shift changes, the police chief said.
But unexpected crime, extensions of shifts when an officer must respond to a call just as his shift is ending, crime scene processing or special events such as Lakefest or fireworks, all result in overtime hours, said Hiller.
The police department employs 18 full time and part time officers, two clerical employees, nine crossing guards, one crime victim advocate and 16 reserve officers. The reserve is managed through Hiller’s department but paid through offsetting revenue from the school district, American Legion or VFW, he said.
“In general, the police is not a revenue generating entity. We get a specific budget and operate in that budget,” said Hiller.
Other departments
Other 2009 general fund overtime included the fire department ($24,223), building inspection ($206), engineering ($3,787), street maintenance ($3,216), snow removal ($12,898), traffic signs ($63), and park maintenance ($3,893).
Walters said overtime in the city’s finance department was $5,113 in 2009.
It usually accrues from December to May because the workload increases at the end of the year and they are also getting ready for audits. Adding to the overtime costs in 2009 was that one person was out on workman’s compensation from June to October, meaning that other employees had to pick up the workload, said Walters.
When Nancy Bennett retired from her position of finance assistant this year after 28 years in the department, Walters recommended hiring an accountant to replace her to add to the capabilities of the department. Ann Lauer, CPA, started Monday. Walters plans to work with her as much as she can before she leaves Waseca next week.
“My hope is that once we have a full department, we will be able to eliminate overtime,” she said.
In 2010, the finance department is budgeted for $7,611 in overtime costs.
One suggestion Walters has for reducing overtime costs is to follow federal law which counts overtime after 40 hours in a week. Currently, overtime is calculated after 8 hours a day. Union contracts would prohibit changing their overtime calculations, she said.
Planning for overtime
Department heads budget for overtime each year based on what they need and the past history of their department.
For example, with the wastewater treatment facility project underway, Utilities Director Carl Sonnenberg could expect to acquire more overtime in his department, Walters said. She provides three years’ history of overtime costs as reference.
Since Walters came to Waseca nearly three years ago, she has made changes that save the city money, including switching employee health insurance to a high deductible policy two years ago, saving the city $50,000. Beginning this year, an even higher deductible will save the city another $50,000.
By completing the city’s financial statements “in house,” Walters is saving the city over $30,000 a year, she said.
Her last day in Waseca is March 16.
Ruth Ann Hager is at 507- 837-5446 or rhager@wasecacountynews.com.
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