Delray's budget task force recommendations may take years to implement

Budget task force cuts may take years to implement

By DAVID SEDORE, Palm Beach Business.com

DELRAY BEACH — The work of the city’s budget task force might end up saving Delray millions of dollars, but it’s impact on this year’s budget likely will be rather minimal.

City commissioners Tuesday reviewed 15 cost-cutting proposals that the task force has put forward along with analysis and recommendations from City Manager David Harden. Delray is facing a budget short fall of $6 million to $8 million.

Many of the items involve collective bargaining issues that must be negotiated with the unions that represent the city employees, especially police and fire. Others will be studied further to determine their impact on the budget and any unintended consequences that might pop up.

A few, including a proposal to charge a “convenience fee” on residents using credit cards to make payments online or over the phone could be incorporated into the budget for 2008-09.

“The recommendations from the budget task force are terrific,” Commissioner Woodie McDuffy said. “Some of these will take three or four year to implement.”

Among the task force proposals:

— Employees may use vacation and holiday time in calculating overtime pay. Eliminating the policy could save the city more than $357,000 annually.

— The city could save nearly $138,000 by eliminating “double overtime” for police officers. Double overtime happens when an officer is scheduled to work overtime, say a Saturday after working Monday through Friday, and designates that day to take a “floating” holiday.

The officer gets the standard time-and-a-half for working the Saturday, but he or she also gets time-and-a-half for the holiday.

— Reforming education pay (money given police and fire fighters for degrees held) could save the city $251,000.

But in all three instances, any changes would have to be negotiated, Harden said.

The task force, which attended Tuesday’s meeting at the commission’s request, also recommended that city eliminate car allowances paid employees who use their personal cars for business. Some are paid $220 a month; others $110.

Instead, the city should pay by the mile, requiring employees to document their travels.

But Harden said there’s a potential problem if the change is made.

“We can’t require employees to use their personal cars for city business,” Harden said.

The net effect might force the city to buy more cars for its transportation pool.

Harden’s recommendation: Require employees to document their travels at least one month out of the year to see how much they actually drive and whether the allowances are justified or should be adjusted.

The city shells out $150,000 a year in merchant fees to allow residents to pay utility bills, police fees and other charges via credit card. The task force recommended that the city implement a $1.50 fee on some transaction in order to recoup some of that money.

“The fees for using credit cards are substantial,” Finance Director John Safford said. “You’re really getting hit several time.”

But Mayor Rita Ellis expressed some concern that charging the extra $1.50 could dissuade some from making payments at all and could end up costing the city.

Safford said the idea is to strike a balance — recover some of the charges without discouraging credit card use.

More of the task force's recommendations will be reviewed in the coming weeks.

The commission is scheduled to meet again next Tuesday to set a proposed property tax rate for the coming year. The city faces an August 4 deadline to do so. It is scheduled to approve the budget on September 16.

The upcoming budget year begins October 1.