FY 2021 BUDGET HEARINGS Human Resources FY 2021

FY 2021 BUDGET HEARINGS Human Resources

FY 2021 Budget Hearings Human Resources FY 2021 Human Resources Department General Fund Budget HR General Fund Actual FY 2018 Actual FY 2019 Budget FY 2020 Proposed FY 2021 Change FY 20 -21 % Change FY 20 -21 Personal Services $1, 308, 119 $1, 155 $1, 838, 207 $1, 854, 072 $15, 865 0. 9% Materials, Supplies, and Equipment 126, 413 243, 156 465, 460 465, 429 (31) (0. 006%) Internal Services 536, 856 710, 989 11, 035 11, 374 339 3. 1% Debt Service 20, 192 28, 551 40, 281 25, 791 (14, 490) (36. 0%) 1, 991, 580 2, 137, 850 2, 354, 983 2, 356, 666 1, 683 0. 1% 13. 55 14. 55 16. 60 0 0. 0% Total Staffing Level (FTEs)

FY 2021 Budget Hearings Human Resources Major Funding Changes (General Fund Proposed Budget) Regular Salaries (↑ $29, 302) Temporary Salaries (↓ $2, 520) Hospitalization Miscellaneous Travel (↓ $19, 198) Chares- N. O. C. (↓ $17, 600 ) & Subsistence (↑ $5, 695) Workshops/Seminars-Training (↑ $5, 2, 50)

FY 2021 Budget Hearings Human Resources FY 2021 Human Resources Department Risk Management Fund Budget HR Risk Management Fund Actual FY 2018 Actual FY 2019 Budget FY 2020 Proposed FY 2021 Change FY 20 -21 % Change FY 20 -21 Personal Services $176, 511 $207, 001 $190, 617 $192, 478 $1, 861 1. 0% Materials, Supplies, and Equipment 2, 544, 419 3, 664, 632 3, 904, 149 4, 036, 087 131, 938 3. 4% Internal Services 32, 181 27, 682 7, 081 7, 329 248 3. 5% Special Purpose 53, 549 327, 282 0 0. 0% 0 0 12, 554 0 0. 0% 2, 806, 661 4, 226, 597 4, 114, 401 4, 248, 448 134, 047 3. 3% 1. 75 1. 30 0 0. 0% Depreciation Total Staffing Level (FTEs)

FY 2021 Budget Hearings Human Resources Major Funding Changes (Risk Management Fund Proposed Budget) Insurance Claims-Legal Defense (↓ $85, 000) Insurance Claims- Motor Vehicle Fund (↑ $40, 000) Consultants Liability (↑ $48, 550) (↑ $56, 234) Insurance Claims (↑ $37, 383)

FY 2021 Budget Hearings Human Resources FY 2021 Human Resources Department Workers’ Compensation Fund Budget HR Workers’ Compensation Fund Actual FY 2018 Actual FY 2019 Budget FY 2020 Proposed FY 2021 Change FY 20 -21 % Change FY 20 -21 Personal Services $594, 904 $531, 419 $511, 863 $541, 099 $29, 236 5. 7% Materials, Supplies, and Equipment 767, 300 771, 497 1, 156, 875 981, 045 (175, 830) (15. 2%) Internal Services 12, 873 12, 903 2, 213 2, 273 60 2. 7% Special Purpose 5, 365, 974 5, 064, 286 3, 072, 878 3, 461, 998 389, 120 12. 7% 391 587 0 0. 0% 6, 741, 351 6, 345, 073 4, 743, 829 4, 986, 415 242, 586 5. 1% 4. 65 4. 30 0 0. 0% Depreciation Total Staffing Level (FTEs)

FY 2021 Budget Hearings Human Resources Major Funding Changes (Workers’ Compensation Fund Proposed Budget) Insurance Claims-Legal Defense (↓ $165, 000) Unemployment Delaware Medical W/C- Insurance (↓ $20, 000) State Self Insurer’s Tax (↓ $23, 000) Costs (↑ $100, 000) Other Costs (↑ $317, 120)

FY 2021 Budget Hearings Human Resources FY 2021 Human Resources Department Health & Welfare Fund Budget HR Health & Welfare Fund Actual FY 2018 Actual FY 2019 Budget FY 2020 Proposed FY 2021 Change FY 20 -21 % Change FY 20 -21 Personal Services $257, 503 $334, 967 $429, 464 $406, 592 ($22, 872) (5. 3%) Materials, Supplies, and Equipment 163, 701 258, 828 304, 578 328, 717 24, 139 7. 9% Internal Services 2, 296 2, 835 743 763 20 2. 7% Special Purpose 20, 062, 772 19, 815, 053 22, 239, 644 22, 565, 633 325, 989 1. 5% Total 20, 486, 271 20, 423, 651 22, 974, 429 23, 301, 705 327, 276 1. 4% 3. 05 3. 80 0 0% Staffing Level (FTEs)

FY 2021 Budget Hearings Human Resources Major Funding Changes (Internal Service Funds Proposed Budget) Consultants (↑ $24, 139) Prescriptions Medical Vision (↑ $168, 135) Stop Loss Insurance (↓ $199, 724) ($112, 500, New Budget Item in FY 2021) Employer Funded HRA ($150, 000, New Budget Item in FY 2021) Dental Costs (↑ $103, 400)

FY 2021 Budget Hearings Human Resources Mission To provide the necessary human resources to City departments in order to promote the highest quality workforce and productive work environment, and maintain the City’s operational and fiscal stability through effective risk management.

FY 2021 Budget Hearings Human Resources FY 21 Key Priorities (3) Continue developing strategic processes to promote compliance with EEOC, ADA, FMLA, and City Code § 40 -54 Enhance the City’s performance management efforts with timely, relevant feedback on employee performance. Enhance the talent acquisition process to ensure the City’s ability to attract and retain a qualified workforce

FY 2021 Budget Hearings Human Resources FY 21 Key Performance Indicators (3) Ensure the prompt, thorough investigation of all workplace complaints within 90 days. Ensure performance evaluations are timely completed 90% of the time. Enhance the talent acquisition process to ensure the City’s ability to attract and retain a qualified workforce by extending offers for nonuniformed personnel within 120 days of vacancy 90% of the time.

FY 2021 Budget Hearings Human Resources City-wide

FY 2021 Budget Hearings Human Resources 1. Discuss the budgetary account lines that could potentially be impacted as a result of the COVID-19 pandemic. See attached chart

DIVISION FY 2021 Budget Hearings Administration Human Resources Employment Services ACCOUNT/NAME $2, 000 Professional Development 53403 – Food $3, 000 Admin Day/HR Teambuilding 53407 – Trophies/Awards $2, 000 52302 – Travel $3, 000 Professional Development Take our Children to Work, Admin Day, HR Teambuilding $50, 000 City University 53403 – Food $3, 200 New Employee Orientation, Keys to Success banquet, Take our Children to Work 53407 – Trophies/Awards $5, 000 Years of Service, Customer Service Week, etc. 52302 – Travel $2, 000 Professional Development 52701 -Consultants Compliance PURPOSE 52302 – Travel 52701 -Consultants Classification & Compensation AMOUNT 52302 – Travel 53108 -Miscellaneous General Fund Total $50, 000 Implement new Class/Comp system $2, 800 Professional Development $21, 000 External investigations $144, 000 Risk Management 52302 – Travel $2, 100 Professional Development Worker’s Compensation 52302 – Travel $4, 200 Professional Development Health and Welfare 52302 – Travel $4, 250 Professional Development

FY 2021 Budget Hearings Human Resources 2. Discuss the status of all union labor contracts such as the contractual term dates per each union. BARGAINNG UNIT DESCRIPTION CONTRACT TERMS STATUS FOP Lodge #1 (C&I) Captains & Inspectors 7/1/17 - 6/30/20 Under Contract FOP Lodge #1 (R&F) Rank & File Police Officers 7/1/16 – 6/30/20 Under Contract AFSCME Local 1102 Clerical, Technical & Supervisory 7/1/18 – 6/30/22 Under Contract AFSCME Local 1102 B School Crossing Guards 7/1/15 – 6/20/18 Contract Expired Active Negotiations AFSCME Local 320 Labor, Trades and Crafts 7/1/15 – 6/30/18 Contract Expired Active Negotiations IAFF Local 1590 Fire Fighters & Officers 7/1/12 – 6/30/16 Contract Expired Awaiting BIA decision

FY 2021 Budget Hearings Human Resources General Fund

FY 2021 Budget Hearings Human Resources 3. Discuss current vacant positions. 3 a. Specify duration of the vacancies. 3 b. Specify timeframe for filling positions. POSITION DATE OF VACANCY TIMELINE TO FILL HRIS Administrator 1/3/2020 June 2020 Labor Relations Specialist 7/1/2019 Pending Director of Classification and Compensation 7/1/2019 Pending

FY 2021 Budget Hearings Human Resources 4. Discuss any proposed changes to positions (new position, deleted position, upgraded, downgrade, title change, salary adjustment, etc. POSITION ACTION Employee Engagement Administrator Delete HRIS Coordinator Add

FY 2021 Budget Hearings Human Resources 5. Discuss the planned use of $158 K budgeted in Miscellaneous Services, considering $12 K expended year to date. DIVISION Administrative AMOUNT PURPOSE $3, 000 Beverage service Compliance $62, 400 External Investigations Classification and Compensation $93, 115 Payroll vendor

FY 2021 Budget Hearings Human Resources 5 a. Specify budgetary operational cost efficiencies for use of ADP payroll services. Operational efficiency was the driving purpose for migrating to an external vendor. The annual estimated cost savings is ~135 K

FY 2021 Budget Hearings Human Resources 5 b. Specify number of External Investigations completed for FY 19 and FY 20. PERIOD # INVESTIGATIONS Fiscal Year 2019 5 Fiscal Year 2020 1 (Pending)

FY 2021 Budget Hearings Human Resources 6. Discuss the planned use of $120 K budgeted in Professional Fees, considering $31 K expended year to date. DIVISION Employment Services AMOUNT PURPOSE $50, 000 City University CUTS $50, 000 $5, 000 Residency Investigations $1, 200 Temporary Agency Compliance $13, 785 Arbitration Fees Classification & Compensation $50, 000 New Class/Comp System Note: For FY 20 the implementation of City University was delayed. $50, 000

FY 2021 Budget Hearings Human Resources 7. Justify the $156 K budgeted across the following account lines and share which budgetary items are essential to your departmental operations. DIVISION Administrative AMOUNT CATEGORY Professional Development, Tuition Reimbursement Program $11, 000 Food/Trophies & Awards Admin Professionals Day/HR Team building $5, 000 Professional Development $2, 000 Classification & Comp _ $53, 299 Memberships/Registrations City-wide training, professional development $35, 700 Food/Trophies & Awards Keys to Success, New Employee Orientation, Take our Children to Work $8, 200 Professional Development $3, 200 $6, 364 Travel Compliance CUTS $14, 000 Memberships/Registrations $4, 000 Travel Employment Services PURPOSE $18, 567 Memberships/Registrations Professional Certifications/CLEs and State mandated training _ _ $ 5, 695 Travel Professional Development $2, 800 $ 3, 500 Memberships/Registrations Professional/Trade Publications $1, 500 $ 4, 000 Travel Professional Development $2, 000

FY 2021 Budget Hearings Human Resources Internal Service Funds

FY 2021 Budget Hearings Human Resources 8. Discuss the $23 M funds budgeted for City employee’s healthcare costs. BUDGET LINE FY 21 PROPOSED FY 20 BUDGET DIFFERENCE Medical Cost $15, 697, 066 $15, 678, 669 $ 18, 397 Medical Stop Loss Cost $ 1, 375, 439 $ 1, 575, 163 -$199, 724 Medical Admin Cost $ 652, 882 $ 612, 927 $ 39, 955 Dental Cost $ 1, 250, 000 $ 1, 146, 600 $ 103, 400 Prescription Cost $ 4, 178, 668 $ 4, 010, 533 $ 168, 135 Vision $ 112, 500 $ 0 $ 112, 500 Total $23, 266, 555 $23, 023, 892 $ 242, 663

FY 2021 Budget Hearings Human Resources Overall, FY 21 costs increased by $242 K primarily due to the new vision program and the reallocation of Dental. Medical: Claims stayed relatively flat, a solid indication that Active City employees are better managing their overall health and wellness. Medical Stop Loss: Large Claimants as well as their percentage of total claims decreased. Medical Admin: After a 2 -year rate hold, the vendor increased the Per Employee Per Month (PEPM) fee slightly. Dental: Increase due to annual evaluation and appropriate allocation of split between Active and Retired enrollment. Prescription: This line varies from year to year based on drug utilization. Current funding reflects underwriting projections of expected spend based on current illness and treatments. Vision: Implemented in FY 20, this new preventative program is reflected in a separate budget line for the first time.

FY 2021 Budget Hearings Human Resources 8 a. Specify if all recommendations have been implemented from the Health Care Task Force, and if there any continued savings as a result of the recommendations. Of the 33 recommendations included in the Healthcare Taskforce Report (HCTF), 15 recommendations had $5. 9 M of anticipated savings tied to them. Since April 2017 when the report was published, the City has completed/launched 14 initiatives including seven recommendations with a defined anticipated savings of $3. 1 M. Many of the recommendations implemented around education and engagement did not anticipate quantified savings in the report. We continue to revisit the HCTF Report to evaluate whether some recommendations are actionable 4 years post publication.

FY 2021 Budget Hearings Human Resources 8 b. Specify the preventive measures the City has put in place to help promote and market for City employees to be healthy Launched Diabetes Prevention Program Conducted Stroke Prevention Workshops Expanded physician engagement, telemedicine and benefit days Expanded the Vision and Dental plans and added an Opioid Prevention Program through Express Scripts Wellness Week: In partnership with Medical Dispensary executed Fall Fest and Health Fair that included expanded health care screenings Launched branded Wellness in Wilmington Program connecting healthy living options throughout the City

FY 2021 Budget Hearings Human Resources 8 b. Specify the preventive measures the City has put in place to help promote and market for City employees to be healthy

FY 2021 Budget Hearings Human Resources 9. Discuss the $517 budgeted for Worker’s Comp Other Cost Self Insurance, up $317 K. BUDGET LINE AMOUNT PURPOSE 58114 – W/C – Other Costs $190, 000 Legal Defense fees (transferred from 524062) 58114 - W/C – Other Costs $327, 120 Increase based on FY 21 Actuary Report Cost Drivers: 2016 Canby Park fire; new asbestos claims; increase in litigated claims

FY 2021 Budget Hearings Human Resources 10. Discuss the $4. 3 M budgeted in the Insurance account line. FUND G/L # ACCT NAME Risk Management 52401 Fire $247, 203 Coverage on property, vessels, large vehicles 52402 Liability $713, 247 Excess Liability coverage 52406 Insurance Claims $1, 490, 766 General liability, auto, property 524062 Legal Defense $1, 100, 000 Constitutional, public liability, conflicts, PIP, etc. 524064 Motor Vehicle 524066 Risk Control $84, 700 Cybersecurity, crime insurance 524081 Claimant $29, 711 Claim – Risk Manager 52402 Liability 52403 Surety Bonds 52407 Unemployment Claims Worker’s Compensation AMOUNT $130, 000 $400, 000 $15, 000 $100, 000 PURPOSE Damage to City Vehicles Coverage for occupational injury claims Coverage Self-insured costs for U/E claims

FY 2021 Budget Hearings Human Resources 10 a. Specify if any savings realized for the last 2 years as a result of the City purchasing excess insurance coverage budgeted for $676 K. This coverage protects against catastrophic loss and prevents the City from having to maintain large reserves for multi-million dollar claims. The coverage is $15 M per occurrence for claims in excess of $750 K. Since 2015 the insurance has paid out: $1. 3 M million for a law enforcement claim $100 K for a vehicle damage claim The City has received $20 K in risk control services and training, the savings from which cannot be accurately tracked.

FY 2021 Budget Hearings Human Resources 11. Discuss the $894 K budgeted for Professional Fees. See Chart

VENDOR CONTRACT AMOUNT LENGTH TENURE Oluseyi-Senu-Oke, MD Dispensary Doctor $125, 000 1 Year 23 Years (1996) Pivot-Occupational Health Fitness for duty exams, pre-employment medical screenings, summer youth hiring, DMEs, ergonomic evaluations $153, 000 1 Year (2019) PMA Management Corporation TPA-Workers Comp Liability/Safety $252, 650 1 Year 13 Years (2007) AON Risk Consultants, Inc. Actuary $9, 000 1 Year 11 Years (2009) Integrity Temporary Staffing $5, 100 1 Year 7 Years (2013) Influencers Lab Media Population Health Engagement/Teletherapy $25, 000 1 Year (2019) USI Insurance Services, LLC Broker-Liability $60, 000 4 Years 6 Years (2014) USI Insurance Services, LLC Broker-Benefits $152, 000 4 Years 6 Years (2014) Wellworks For You Physician Engagement $8, 580 1 Year 2 Years (2018) Teladoc Telemedicine $27, 462 1 Year 2 Years (2018) Winston Benefit Enrollment Software $25, 000 1 Year New Flex. Facts COBRA/FSA/Flex $31, 200 1 Year 8 Years (2012) People. Facts Background Checks $17, 000 1 Year 11 Years (2009) Gartner Cyber Security $56, 700 1 Year 2 Years (2018) DBE (Y/N) Y

FY 2021 Budget Hearings Human Resources 12. Discuss the planned use of $90 K budgeted in the Temporary Salaries account line FUND AMOUNT PURPOSE Worker’s Compensation Risk Manager (50%) and assistance with peak periods (public safety $45, 390 fitness for duty exams, Summer Youth hiring, etc. ). Risk Management $34, 500 Risk Manager (50%) Health and Welfare Coverage for employee absences and assistance during peak $10, 000 periods (Open enrollment, service days, Fall Fest, etc. ).

FY 2021 Budget Hearings Human Resources 13. Justify the $78 K budgeted across Memberships & Registration and Travel account lines and share which budgetary items are essential to your departmental operations. FUND Risk Management Workers Compensation AMOUNT CATEGORY $2, 490 Memberships/Registrations Industry/Trade Associations $4, 250 Travel Professional Development $12, 485 Memberships/Registrations $8, 400 Travel Health and Welfare PURPOSE $42, 725 Memberships/Registration $8, 750 Travel Training videos, industry/trade associations, professional certifications, etc. CUTS -$2, 100 -- Professional Development $4, 200 Wellness education, professional certifications, Fall Fest, etc. $5, 000 Professional Development $4, 250

FY 2021 Budget Hearings Human Resources Department Overview – General Fund Administrative Compliance Classification/Compensation Strategic Planning ADA/ FMLA Classifications & Compensation Budgeting EEOC Payroll Vendor Support Purchasing & Payment Labor Management Data & Analytics Policy Administration Employment Services Talent Acquisition/Onboarding Succession Planning Performance Management Employee Engagement Career Development/Training

FY 2021 Budget Hearings Human Resources Department Overview – Internal Service Funds Risk Management Workers Compensation Risk Control Medical Dispensary Litigation Return to Work Insurance Occupational Health Claims Processing Safety Cyber Security Training Health and Welfare Benefit Enrollment & Administration Retiree Healthcare Wellness/Population Health Auditing/Compliance Trending / Data Analytics