Department: Management and Budget
Department Head/Elected Official: Daniel Ramos
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request for approval of recommended Contract Patrol rates for FY 2025.
end
Background and Discussion:
Soon after the start of each fiscal year, the Office of Management and Budget (OMB) recommends contract patrol rates for the following fiscal year to provide customers advance notice of any cost increases. Historically, the contract rate has been based on the county’s direct cost of salary, benefits, vehicles, fuel and equipment. Based on Local Government Code 351.062 which requires the fees to recover 100% of the county’s cost, and after consultation with the County Attorney’s Office, OMB recommends including an indirect cost component to the rate beginning in FY25 to also recover the cost of support functions provided by departments such as Universal Services, the County Attorney, County Auditor, Facilities and other support functions. An overhead rate of 11.2% was used, based on data from the County’s most-recently completed Cost Allocation Plan.
The recommended cost for a 100% officer is $132,200, a 13.6% increase over the current rate. Of this, 6.6% is based on higher direct costs with 7.0% due to the new overhead component. The cost increase detail and recommended contract patrol rates for October 1, 2024 through September 30, 2025 are:
|
|
|
|
|
|
Recommended FY25 Rates |
|
|
FY24 Cost |
FY25 Cost |
% Change |
|
Contract % |
Cost |
|
Direct Cost |
$116,400 |
$124,100 |
6.6% |
|
100% |
$132,200 |
|
Overhead Cost |
not included |
$8,100 |
- - |
|
80% |
$105,760 |
|
Total Cost |
$116,400 |
$132,200 |
13.6% |
|
70% |
$92,540 |
In addition to the proposed contract rate, OMB also recommends a policy change under which newly-added patrol officers would be provided only at the 100% rate. This would not affect the 70% and 80% positions already under contract with existing customers, but would require all new officers be added at 100% for both new and existing customers.
Of the 1,201 existing contract officers, 875 are contracted at 70% and 194 are contracted at 80%. The total cost of these officers is $140M, of which $105M is paid by customers and $35M is covered from general revenue.
Requiring new officers to be added at 100% would eliminate the incremental burden on general revenue when new contracts are added. Minimizing the general fund burden is increasingly important given currently high inflation, tighter budgets and increasing financial uncertainty going forward.
Expected Impact:
It is unknown whether the proposed rate increase will affect the total number of patrol contracts. Assuming the same number of contracted officers, the proposed rates would generate $14.2M more revenue per year than the current rate.
Alternative Options:
Commissioners Court could phase-in the overhead cost component of the rate over a period of time. If this approach is chosen, OMB recommends a three-year phase-in which would result in an 8.9% increase over the FY24 rate. Under a three-year phase-in, the recommended FY25 contract rates are:
|
Alternate FY25 Rates |
|
3-Year Overhead Phase-In |
|
Contract % |
Cost |
|
100% |
$126,800 |
|
80% |
$101,440 |
|
70% |
$88,760 |
Alignment with Goal(s):
X Justice and Safety
_ Economic Opportunity
_ Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
_Governance and Customer Service
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
11/15/2022 |
34 |
Passed |
Location:
Address (if applicable):
Precinct(s): Countywide
|
Fiscal and Personnel Summary |
|
Service Name |
|
|
|
FY 24 |
FY 25 |
Next 3 FYs |
|
Incremental Expenditures (do NOT write values in thousands or millions) |
|
Labor Expenditures |
$ |
$ |
$ |
|
Non-Labor Expenditures |
$ |
$ |
$ |
|
Total Incremental Expenditures |
$ |
$ |
$ |
|
Funding Sources (do NOT write values in thousands or millions) |
|
Existing Budget |
|
Choose an item. |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
|
Total Current Budget |
$ |
$ |
$ |
|
Additional Budget Requested |
|
1000 - General Fund |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
|
Total Additional Budget Requested |
$ |
$ |
$ |
|
Total Funding Sources |
$ |
$ |
$ |
|
Personnel (Fill out section only if requesting new PCNs) |
|
Current Position Count for Service |
- |
- |
- |
|
Additional Positions Requested |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
Anticipated Court Date: November 14, 2023
Anticipated Implementation Date (if different from Court date): October 1, 2024
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Daniel Ramos, Executive Director, Office of Management and Budget
Attachments: none