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E-2a. FY05 Budget Direction <br />General Fund/Internal Service Fundsl <br />• General adjustment for inflation: 1 % for personal services and 1 % for materials and services. <br />Bargaining unit employees will be budgeted according to the wage guidelines in their <br />particular agreement. <br />PW -Public Works generally uses the same rate of inflation for non-general funds as that <br />used by the general fund. This, however, is ultimately determined at the time the PW <br />~~ department management team sets the level of funding per fund. Division budget <br />coordinators do not have to worry about inflation factors, as they will be built in to the <br />baselines they receive from PW Administration. <br />• General Fund Forecast growth factor target: $0. <br />• Base capital transfer: $1,914,500. <br />Rate Setting <br />Internal Service Funds (ISF~ <br />'PW -All rates for Public Works funds are either included in the distributed baselines or <br />forwarded to division budget coordinators. Rates such as Fleet, Maintenance, Parking, etc. <br />~~ .should be processed through Public Works Administration and not sent by rate makers directly to <br />Public Works Division budget coordinators. <br />• Internal Service Fund rates for Health and Risk have been approved by Executive Managers. <br />The Employee Health & Benefits Fund is predicting continued cost increases in FY05. <br />Executive Managers approved FY05 rates for Full-time Employees of $788 per month, an <br />increase of $100 (14.5%) from the FY04 rate. The Part-Time, Limited Duration, and <br />Benefited Recreation Employee rate is $502 per month, an increase of $66 (15.1%) from the <br />FY04 rate. General Fund baselines will be adjusted to make departments "whole" for this <br />cost. <br />The Risk Fund charges are detailed in the rate sections. Executive Managers approved <br />increases of 9% above the FY04 budgeted rates (excluding the surcharge) and will recover <br />$3,781,116 in FY05 costs. Individual department costs may vary due to a variety of factors, <br />including experience, exposure and number of FTE. Baseline adjustments in the GF have <br />been granted. Do not forget to budget the Risk Surcharge developed in FY02 to payoff the <br />General Fund loan to the Risk Fund for settlement of large liability claims in FY01 and the <br />lExcept Professional Services Fund; General Fund pays no rates to this fund. <br />Financial Policies and Procedures Manual 10/03 <br />Tab FPPM for PW Budgeting_Instr.doc <br />Page E.3 <br />