2. FY 2012 “The Base Year”
Salary & Wages
$57,430,720
Health Benefits
$13,154,815
Pension &
Retirement
$12,423,606
Other Employee
Benefits
$2,600,154
Equipment &
Services
$18,108,803
General Liability
$1,284,335
Worker's
Compensation
$2,842,982
Internal Services
$12,053,342
Debt Service
$11,553,187
Special Purpose
$415,070
State Pension
Contribution
$7,470,072
Total Budget = $ 139,377,818
3. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Salary & Wages
57
58
59
60
$57.43
$58.07
$58.97 $58.70
$59.02
Millions
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Assumptions: Approx. Cost/ (Savings) FY 13-16:
• No Colas, Step Increases continue: $587,000 Annually
• Attrition of seven positions per year ($300,000) Annually
• COPS Grant * $350,000 – FY 2013
$403,000 – FY 2014
• SAFER Grant ** $380,000 – FY 2014
$403,000 _ FY 2015
*assumes all 16 officers will be laid off Jan. 2014 $433,000 – FY 2016
**assumes only 5 firefighters will remain FY14-16
4. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Health Benefits, Active Employees
$13.15
$14.44
$16.29
$17.93
$19.97
13 14 15 16 17 18 19
2012
2013
2014
2015
2016
Millions
Assumptions: Approx. Cost/(Savings) FY 13-16:
• Annual Inflation factor of 11.2%* $1.4 - 2.0 million Annually
• Union employee migration to new plans ($230,000) Annually
• Attrition of Seven positions annually ($70,000) Annually
• COPS Grant $113,000 – FY 2013
$198,000 – FY 2014
• SAFER Grant $123,000 – FY 2014
$137,000 – FY 2015
$152,000 – FY 2016
*Based on the 2011 Segal Health Plan Cost Trend Survey and discussions with the City HR Department
5. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Pension & Retirement Healthcare
$12.42
$13.67
$14.82
$15.91
$17.19
12
16
20
2012 2013 2014 2015 2016
Millions
Assumptions: Approx. Cost/(Savings) FY 13-16:
• 10% Annual inflation for Pension costs* $832,000-1.1 million Annually
• Pension Healthcare increase* $203,000 Annually
• FOP contract Pension increase $192,000 Annually
• Elimination of Seven positions annually ($65,000) Annually
• COPS Grant $51,000 – FY 2013
$86,000 – FY 2014
• SAFER Grant $40,000 – FY 2014
$43,000 – FY 2015
$48,000 – FY 2016
*Based on actuary estimates to meet unfunded liability per City Treasurer’s Office
6. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Material, Supplies, & Equipment
$18.1
$18.5
$18.9
$19.4
$19.8
18
20
2012 2013 2014 2015 2016
Millions
Assumptions: Approx. Cost/ (Savings) FY 13-16:
• Annual 2.5% Inflation on base MS&E $400,000 Annually
(minus Electricity, Misc., Contingency, & Snow)
• Annual 2.9% Electricity Inflation* $50-55,000 Annually
(assumes MSA in FY 13-16)
•Honeywell (LED) estimated savings ($80,000) Annually
*Based on Energy Information Administration Estimates
7. Calendar
Year
Survey of Professional Forecasters
Projected Annual Headline CPI
Increase
2011 3.20%
2012 2.00%
2013 2.10%
2014 2.30%
2015 2.30%
Federal Reserve Bank of Philadelphia, Survey of Professional Forecasters,
August 12, 2011
8. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Internal ServicesInternal Services
$12
$14
2012 2013
2014
2015
2016
$12.05 $12.42 $12.75 $13.08 $13.42
Millions
Assumptions: Approx. Cost/ (Savings) FY 13-16:
• Annual 2.5% Inflation for Data Processing costs $71-77, 000 Annually
•Large Annual One-time Data Processing expenses $250,000 Annually
•Annual 4.5% Inflation for Motor Vehicle Fuel costs* $45-52,000 Annually
•Annual 2.5% Inflation for all other Motor Vehicle $200-215,000 Annually
and Internal Services costs
*Based on Energy Information Administration Estimates
9. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
Debt Services
$11,000,000
$12,000,000
$13,000,000
$14,000,000
2012
2014
2016
$11,553,187
$14,092,917
$13,132,399
$13,570,351
$14,201,244
Assumptions: Approx. Cost/ (Savings) FY 13-16:
• Annual Interest Rate 4.5%
• FY 2012 Debt Service Cost in Out-years $ 10.7 Million Total Cost
• New Borrowing mid-FY 2014 & mid-FY 2016 $ 20 Million per Issuance
• Total new debt service $ 4.6 Million
10. City of Wilmington General Fund
Five Year Projection (2012-2016)
Assumptions Used in Outyear Projection
All Other Expenditure Categories
Category Assumption(s)
• Other Employee Benefits 1% Increase/Follows Salaries & Wages
• General Liability Annual 2.5% Inflation
• Worker’s Compensation 1% Increase/Follows Salaries & Wages
• Special Purpose Annual 2.5% Inflation
• State Pension Contribution 6.5% reduction in FY 13,
No change 14-16
11. City of Wilmington General Fund
Five Year Projection (2012-2016)
Expenditure Assumptions
Questions
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