Loading...
HomeMy WebLinkAboutCAO-002-19 Clarington CAO REPORT If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: February 11, 2019 Report Number: CAO-002-19 Resolution: GG-049-19, GG-308-19 &GG-374-19 File Number: By-law Number: Report Subject: New Staffing Policy Recommendations: 1. That Report CAO-002-19 be received; and 2. That the New Staffing Policy attached to Report CAO-002-19 be approved. Municipality of Clarington Report CAO-002-19 Page 2 Report Overview The proposed New Staffing Policy establishes an annual funding envelope for new permanent and contract positions. The envelope provides flexibility to maintain service levels with appropriate cost controls. 1 . Background 1.1 Report FND-003-11 included a policy recommendation, approved by Council, that "... budgetary allocation for new staffing in any given year not ... exceed the value of assessment growth for that year." This recommendation was in relation to a proposed multi-year staffing plan. The plan and policy were never followed by Council. 1.2 At the Special Council Meeting on January 18, 2019, there was discussion regarding the efficiency of having Council approve all new staff positions in the budget. With the exception of the Chief Administrative Officer and statutory officers, Council is not involved in the hiring of staff. It follows that management is best positioned to allocate the resources determined by Council (through the approved budget) and deploy staff to provide the services approved by Council. 2. Policy 2.1 Over the past several budget cycles, the concept of a funding envelope for new hires has been discussed. The main advantage of this approach is that it would provide flexibility to maintain service levels and respond to changing needs. A funding envelope would also provide Council with a measure of cost control. 2.2 The primary reason for additional staffing is the increase in the demands for services caused by the Municipality's increasing population. 2.3 Unlike the plan and policy approved by Council in 2011 (through FND-003-11), the proposed policy does not set a staff funding limit based on the growth in assessment. Instead, it links any new staffing to the prior year's levy. 2.4 For context, the policy approved by Council in 2011 to link new staffing to assessment growth would have resulted in an average limit of over $1.2 million over the past 5 years. In 2018, assessment growth was over $1.6 million. Municipality of Clarington Report CAO-002-19 Page 3 2.5 The proposed policy sets a funding envelope limit of 0.8% of the prior year's levy. Over the past 5 years, a funding envelope using this approach would have capped staffing increases at an average level of $406,000. For 2019, the level using this approach would be approximately $452,000. 2.6 The following chart graphically shows the information set out in 2.4 and 2.5 above alongside the staffing levels requested by staff and approved by Council over the years 2014 — 2018. The staffing numbers include both levy and non-levy funded positions. Proposed Staffing Policy vs Assessment Growth and Actuals 2014to 2418 1,B44,DC 1,644,006 1.444,464 1,x44,444 1.4aa,400 - — 566,4[16 - 444 464 x44,446 — 2414 2415 2015 2017 2M •Proposedpo'!c, _ ssessmentgrovlth Requestedstaffcg —Approvedstaffirg 2.7 In recognition of previous decisions of Council, incremental funding of future firefighters is dealt with separately in the policy. On an annual basis, the contribution to the Future Staffing Reserve Fund will be increased by $125,000 in the proposed 2019 budget (making a total contribution to the reserve in 2019 of$250,000) for planned future firefighters. Municipality of Clarington Report CAO-002-19 Page 4 2.8 It is recommended that the funding limit be based on the prior year's levy as this would enable the CAO to make staffing decisions in a timely manner. Assessment growth may not be determined until December which makes a staffing decision for inclusion in a proposed budget difficult. 2.9 The proposed policy does not include positions for which there is no tax levy impact. An example would be a building inspector whose salary and benefits are 100% funded through user fees under the Building Code Act, 1992. 2.10 The policy also recognizes that from time to time, the Municipality may wish to enter into new services or significantly enhance a service. In these cases, staffing requirements for these new services or enhanced services are not included in the funding envelope and would have to be approved by Council. An example would be new staff required to manage and operate a new recreation facility. 2.11 It is proposed that unexpended funds from any budget be placed in the Future Staffing Reserve Fund for use in future years in recognition that there may not be a need each year to utilize the full funding, but there may be years in which a higher need than the annual contribution limit is required. This strategy will smooth increases to the tax levy and provide the CAO with flexibility to meet service demands. 2.12 Funds specifically entered into the Future Staffing Reserve Fund for Emergency Services personnel, a separate calculation, will be used solely for Emergency Services staffing. Funds entered into the Future Staffing Reserve Fund for other staffing will be used for non-Emergency Services staffing. 3. Concurrence The Treasurer/Director of Finance concurs with the recommendations in this report. 4. Conclusion It is respectfully recommended that the proposed policy be approved. Municipality of Clarington Report CAO-002-19 Page 5 5. Strategic Plan Application Not applicable. Submitted by Andrew C. Allison, B. Comm, LL.B CAO Staff Contact: Nathan Schroor, Policy Analyst, 905-623-3379 x.2611 or nschroor@clarington.net Attachment 1 - New Staffing Policy ATTACHMENT 1 TO REPORT CAO-002-19 • arin n Leading the Way Corporate Policy If this information is required in an alternate format, please contact the Accessibility Co- ordinator at 905-623-3379 ext. 2131 POLICY TYPE: Working Conditions and Programs SUBSECTION: Working Conditions POLICY TITLE: New Staffing POLICY #: E13 POLICY APPROVED BY: Council EFFECTIVE DATE: February 25, 2019 REVISED: February 25, 2019 APPLICABLE TO: All Employees 1 . Purpose The Municipality is committed to demonstrating good governance and ensuring value for the tax dollar. This Policy provides a framework for staffing decisions and provides a higher degree of certainty in the planning for organizational growth. It is intended to ensure responsible and predictable funding to maintain existing service levels. 2. Scope a) This Policy applies to all Municipal departments and all new positions whether full or part time, permanent or contract that are required to maintain current levels of service. b) This policy does not apply to positions that are related to new or significantly enhanced services of the Municipality or positions for services that are fully funded by user fees. 3. Policy a) New staffing decisions will be made by the CAO based on a review of individual business cases prepared with three primary considerations: level of service, growth and balancing strategic priorities. b) When reviewing the annual budget, Council will be asked to approve a new staff funding envelope for permanent or contract tax funded positions up to a maximum of 0.8 percent of the prior year's levy. c) In addition to the funds described in clause b) above, the Treasurer will include within the budget an incremental increase in contribution to the Future Staffing Reserve Fund for WH HTDHW RI one firefighter until RFD OHFW RWHUH. d) Unexpended monies from the annual funding envelope will be contributed to the Future Staffing Reserve Fund for allocation in future years. e) Funds specifically entered into the Future Staffing Reserve Fund for Emergency Services personnel in accordance with clause c) above will be used solely for Emergency Services staffing. Funds entered into the Future Staffing Reserve Fund for other staffing will be used for non-Emergency Services staffing. f) This Policy shall be reviewed following to the completion of the budget process of the first year of each term of Council or as deemed necessary.