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COOL.MOVE ON WITH OUR HUMAN RESOURCES BUDGET WORKSHOP.
UH, IN CHAMBERS WE HAVE VICE MAYOR, PRO TEM, AMY PECK, STAFF FROM COUNCIL MEMBER JACKSON'S OFFICE, AND COUNCIL MEMBER CAYMAN'S OFFICE, AS WELL AS COUNCIL MEMBER THOMAS'S OFFICE.
COUNCIL MEMBER MARY ANN HUFFMAN, COUNCIL MEMBER JULIAN RAMIREZ.
STAFF FOR COUNCIL MEMBER MARTINEZ, AND ALSO COUNCIL MEMBER CARTER.
AND WE'VE GOT A COPY OF THE PRESENTATIONS HERE, DIRECTOR CHEEKS AND CARLA COLEMAN IS, UM, UH, ARE Y'ALL READY? OKAY, I'LL TURN IT OVER TO YOU.
GOOD AFTERNOON, CHAIR, VICE CHAIR AND COUNCIL MEMBERS.
I AM PLEASED TO PRESENT THE FY 2027 PROPOSED BUZZARD FOR THE HR DEPARTMENT.
WE HAVE A LOT GOING ON IN HR, AND I WOULD BE REMISS IF I DIDN'T INTRODUCE MY PHENOMENAL EXECUTIVE STAFF THAT HAS ACCOMPLISHED SO MUCH THIS FISCAL YEAR.
JUST TO GIVE YOU A FEW EXAMPLES, THE, WE, WE WERE AWARDED THE ASSOCIATION OF TALENT DEVELOPMENT NATIONAL BEST AWARD FOR OUR CITYWIDE HOPE MCA TRAINING.
ALSO FROM THE TEXAS MUNICIPAL HUMAN RESOURCES ASSOCIATION.
WE WERE AWARDED THE HUMAN RESOURCES IMPACT OF HONOR AWARD FOR OUR 2026 TO 2030 PEOPLE STRATEGY FOR THE CITIES WITH POPULATIONS OVER 25,000.
WITH THIS TEAM, WE WILL CONTINUE TO MAKE NOTABLE ACHIEVEMENTS IN THE UPCOMING FISCAL YEAR.
WOULD YOU STAND, I'LL BE PARTNERING WITH MY CFO CARLA COLEMAN ON THIS PRESENTATION.
I WOULD LIKE TO ALSO ACKNOWLEDGE HER AND HER TEAM.
WITHOUT THEM, THIS PRESENTATION WOULD NOT BE FOUGHT, WOULD NOT BE POSSIBLE.
WOULD THE FINANCE TEAM PLEASE STAND? NEXT SLIDE, PLEASE.
WE WILL FOLLOW THIS TABLE OF CONTENTS AS WE MOVE THROUGH THE SLIDES.
COUNCIL MEMBERS, I'D LIKE TO LET YOU KNOW THAT THE HUMAN RESOURCES DEPARTMENT HAS COMPLETED ITS 2020 TO 25 PEOPLE STRATEGY WITH THE IMPLEMENTATION OF OUR EMPLOYEE AND, AND LABOR, UH, PORTAL.
SO WE ARE VERY EXCITED ABOUT THAT.
SO NOW, THE FY 2026 AND 2030 HUMAN RESOURCES PEOPLE STRATEGY MARKS A BOLD AND INTENTIONAL STEP FORWARD FOR OUR DEPARTMENT.
AS WE PRESENT THIS BUDGET, WE DO SO WITH STRATEGY THAT IS REAL, RELEVANT AND DESIGNED TO ELEVATE THE WAY WE SERVE THE CITY.
THIS PLAN REFLECTS MORE THAN OPERATIONAL PRIORITIES.
IT PRESENTS OUR SHARED COMMITMENT TO INNOVATION, EXCELLENCE, AND MEANINGFUL CONNECTION.
WE ARE ALSO ALIGNED TO TURN THE CURVE, THE TURN THE CURVE INITIATIVE.
THAT IS OUR COMMITMENT TO CONTINUOUS IMPROVEMENT, FORWARD THINKING AND LEADERSHIP.
WE ARE MORE THAN JUST POLICIES AND PROCEDURES.
WE ARE CHAMPIONS OF A PEOPLE FIRST CULTURE THAT VALUES EVERY EMPLOYEE'S JOURNEY FROM RECRUITMENT TO RETIREMENT.
HR IS COMMITTED TO CREATING AN ENVIRONMENT WHERE EMPLOYEES FEEL SUPPORTED, HEARD, AND EMPOWERED TO GROW.
THEREFORE, THIS BUDGET IS NOT ONLY A FINANCIAL PLAN, BUT ALSO AN INVESTMENT OF OUR PEOPLE, OUR PARTNERSHIP WITH OUR CLIENTS, AND OUR FUTURE AS BEACONS OF EXCELLENCE FOR HUMAN RESOURCES IN THE CITY OF HOUSTON.
WITH THAT SAID, WE WILL NOW PRESENT THE HRS PROPOSED FY 27 BUDGET, WHICH HAS A COMBINED TOTAL OF 558 MILLION, INCLUDING FIVE PROGRAMS ALL ALIGNED WITH THE GOVERNMENT THAT WORKS INITIATIVE.
COUNCIL MEMBERS LAST YEAR, HR BEGAN CONTRIBUTING TO CLOSE THE GAP
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BY RESTRUCTURING AND OUR CONSOLIDATED FUNCTIONS.THIS YEAR, WE HAVE ACHIEVED AN ADDITIONAL 3.4 MILLION IN SAVINGS.
THIS INCLUDES 3 MILLION, A $3 MILLION REDUCTION IN CONTINGENT WORKFORCE SERVICES ACROSS TWO CONTRACTS, AS WELL AS $400,000 IN OPERATIONAL SAVINGS THROUGH OUR PARTNERSHIPS WITH KITS AND A SHIFT TO VIRTUAL PROFESSIONAL DEVELOPMENT, WHICH HAS SIGNIFICANTLY REDUCED HRS TRAVEL EXPENSES.
UM, SO NOW WE SEE THE PROPOSED EXPENDITURES FOR HR, AND AS YOU CAN SEE, WE OPERATE OUT OF FIVE FUNDS, THE CENTRAL SERVICE REVOLVING FUND, WORKERS' COMPENSATION FUND, WHICH ARE THE CHARGEBACK FUNDS FOR HR AND THE HEALTH BENEFIT AND LONG-TERM DISABILITY FUND, WHICH ARE INTERNAL SERVICES FUND FOR FISCAL YEAR 2027.
AS DIRECTOR WAS SAYING, WE ARE PROPOSING A BUDGET OF 558 MILLION, WHICH IS AN 11 MILLION INCREASE OR 2% INCREASE COMPARED TO THE 26 BUDGET.
THE PRIMARY DRIVERS OF THIS BUDGET ARE THE RISING HEALTH BENEFIT COST, HIGHER WORKERS' COMPENSATION CLAIMS, EXPANDED CITYWIDE TRAINING AND UPSKILLING EFFORTS, AND THE CONSOLIDATION OF FOUR PRECISIONS FOR THE LEARNING AND DEVELOPMENT FUNCTIONS OF THE GSD AND UM, FLEET DEPARTMENT.
IN ADDITION, THIS INCREASES ARE PARTIALLY OFFSET BY THE REDUCTION OF TEMPORARY PERSONNEL EXPENSES, UM, LOWER MEDICARE AND SUPPLEMENTAL PLANS DUE TO BETTER NEGOTIATED CONTRACT AND A SLIGHT DECREASE IN LONG-TERM DISABILITY CLAIMS. OVERALL, THIS IS A MODEST AND TARGETED INCREASE THAT REFLECTS OUR CURRENT BUDGETARY PRESSURES WHILE CONTINUING TO MANAGE OUR EXPENSES RESPONSIBLY.
AND AS YOU SEE IN THE CHART, HEALTH BENEFIT BUDGET REPRESENTS THE LARGEST SHARE OF HRS BUDGET AT 83%, FOLLOWED BY THE CENTRAL REVOLVING FUND, 9% AND THE WORKERS' COMPENSATION FUND AT 8%.
THIS CHART GIVES US VISIBILITY INTO WHERE THE PERSONNEL AND OPERATIONAL COSTS ARE CONCENTRATED IN HRS BUDGET.
AND THE PERSONNEL EXPENSES FOR THE HR IS 43 MILLION, WHICH IS 8% OF HRS TOTAL BUDGET.
THE REMAINING 92% OR 515 MILLION, IT'S CATEGORIZED AS NON-PERSONNEL COST.
AND ITS WORTH NOTING THAT THE LARGEST SHARE OF THESE NON-PERSONNEL COSTS ARE TIED TO CLAIMS AND PLAN RELATED EXPENSES.
THIS IS APPROXIMATELY 89% OF THAT.
THIS SLIDE BREAKS DOWN OUR BUDGET ACROSS FIVE PROGRAMS. AND THIS SLIDE HIGHLIGHTS THE COST DRIVERS MENTIONED EARLIER, THE LARGEST INCREASES IN BENEFITS PROGRAM, PRIMARILY DUE TO THE RISING HEALTHCARE COST AND ESPECIALLY IN THE CIGNA PLANS.
THIS INCREASES ARE PARTIALLY OFFSET BY LOWER MEDICARE ADVANTAGE PLANS, SUPPLEMENTED PLANS DUE TO BETTER NEGOTIATED CONTRACTS, AND A SLIGHT DECREASE IN LONG-TERM DISABILITY PLANS.
BECAUSE WE HAVE LOWER CLAIMANTS THIS YEAR.
OCCUPATIONAL RISK MANAGEMENT PROGRAM INCREASED MOSTLY DUE TO HIGHER CLAIMS. THE WORKFORCE TRAINING AND UPSKILLING PROGRAM REFLECTS EXPANDED CITYWIDE TRAINING INITIATIVES, INCLUDING THE FOUR ADDITIONS OF THE CONSOLIDATION OF THE LEARNING AND DEVELOPMENT FUNCTIONS FOR GSD AND THE FLEET DEPARTMENT.
THIS INCREASES OUR PARTIALLY OFFSET BY LOWERING THE PERSONNEL SPENDING WITHIN THE HR CLIENT SERVICES PROGRAM.
THE BENEFITS ADMINISTRATION PROGRAM FUNDS THE MEDICAL AND PHARMACY PLANS SUPPLEMENTAL PLANS SUCH AS VISION, DENTAL, LIFE INSURANCE, DEPENDENT CARE, FLEXIBLE SPENDING.
TWO MEDICARE ADVANTAGE PLANS, WELLNESS, EAP, AND THE LONG-TERM DISABILITY PLAN PROGRAM PERFORMANCE IS MEASURED THROUGH FIVE KPIS, FOCUS ON EMPLOYEE ENGAGEMENT, PREVENTIVE CARE, WELLNESS PARTICIPATION, AND COST MANAGEMENT.
HR CLIENT SERVICES PROGRAM DELIVERS COMPLIANT, TIMELY AND ACCURATE HR SERVICES WITH A FOCUS ON RECRUITMENT, HIRING EFFICIENCY, WORKFORCE PLANNING, AND DEPARTMENTAL SUPPORT.
THE FOUR KPIS FOR THIS PROGRAM MEASURES RECRUITMENT EFFECTIVENESS, EMPLOYEE RETENTION, WORKFORCE STABILITY, AND OVERALL PERFORMANCE ACCOUNTABILITY.
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RISK MANAGEMENT PROGRAM FOCUSES ON WORKPLACE SAFETY, HAZARD REDUCTION, EMPLOYEE SAFETY TRAINING, AND RETURN TO WORK SUPPORT FOR IN INJURED EMPLOYEES.THE FIVE KPIS EVALUATE HOW EFFECTIVELY THE PROGRAM REDUCES WORKPLACE INJURIES, RESPONSE TO INCIDENTS, AND MINIMIZES OPERATIONAL DISRUPTION.
THE SUMMER JOB PROGRAM PROVIDES YOUNG PEOPLE AGES 16 TO 24 WITH THE SKILLS AND HANDS-ON EXPERIENCE THAT PREPARES THEM FOR FUTURE EMPLOYMENT FOR THE CITY.
THE TWO PROGRAMS KPIS FOCUSES ON SKILL DEVELOPMENT AND OVERALL PROGRAM EXPERIENCE.
WORKFORCE TRAINING AND UPSKILLING PROGRAM SUPPORTS EMPLOYEE DEVELOPMENT THROUGH LEADERSHIP TRAINING, PERFORMANCE MANAGEMENT AND INNOVATIVE LEARNING STRATEGIES DESIGNED TO STRENGTHEN ORGANIZATIONAL PERFORMANCE.
THE FOUR KPIS MEASURE LEADERSHIP DEVELOPMENT, EMPLOYEE ENGAGEMENT AND EFFECTIVENESS OF WORKFORCE TRAINING INITIATIVES ACROSS THE DEPARTMENTS.
THE NEXT TWO SLIDE FOCUS ON REVENUES.
AND BECAUSE THE HR IS NOT A REVENUE GENERATING DEPARTMENTS ARE, REVENUES ARE PRIMARILY TIED TO THE COST RECOVERY OF THE SERVICES AND THE BENEFITS THAT WE ADMINISTER.
FOR EXAMPLE, THE BENEFITS ADMINISTRATION REVENUE ARE SUPPORTED BY THE EMPLOYEES, THE RETIREES AND THE DEPARTMENT'S PREMIUM CONTRIBUTIONS, AS WELL AS THE LONG-TERM DISABILITY RATE CHARGE TO EACH DEPARTMENT'S PER HEADCOUNT.
AND THE CENTRAL REVOLVING FUND, OCCUPATIONAL RISK MANAGEMENT AND WORKFORCE STRAINING AND UPSCALING REVENUES ARE RECOVERED THROUGH DIRECT CHARGEBACKS TO THE CITY DEPARTMENTS FOR THE SERVICES WE PROVIDE THEM.
OVERALL, THE 27 PROPOSED BUDGET REFLECTS A 7% INCREASE OVER THE 26 ESTIMATE, AND THE DRIVERS ARE THE SAME AS THE ONE EXPLAINED IN THE PREVIOUS SLIDES.
THIS SLIDE SHOWS REVENUE BY PROGRAM HIGHLIGHTING THE PROPOSED BUDGET DRIVERS THE SAME AS WE DISCUSSED IN THE EXPENSE BY PROGRAM SLIDES, AND IT HAS THE SAME DRIVERS AS WELL.
AND THIS CONCLUDES OUR PRESENTATION.
THANK YOU VERY MUCH FOR THE PRESENTATION.
UM, I WANNA START WITH THE FTES THAT ARE IN THE PROPOSED BUDGET.
SO WE SEE AN INCREASE, UM, WORKFORCE TRAINING AND UPSKILLING CLIENT SERVICES, OCCUPATIONAL RISK MANAGEMENT, WHAT'S, UH, DRIVING THOSE INCREASES? GO AHEAD.
SO THERE IS NO INCREASES, BUT IN THE, UH, WORKFORCE TRAINING AND UPSKILLING DUE TO THE CONSOLIDATION OF GSD AND THE FLEET DEPARTMENT, WHEN DO WE DO BUDGET TO BUDGET? AND THERE'S, YOU KNOW, THREE FROM GSD AND ONE FROM FMD, THE OTHER ONES WE, WE MAINTAIN FLAT FROM THE CURRENT FFY 26 BUDGET.
SO WHAT'S, WHAT'S COMING OVER FROM FLEET AND GSD INTO HUMAN RESOURCES LEARNING AND DEVELOPMENT FUNCTIONS? YES.
DO WE HAVE ANY QUESTIONS? WE HAVE COUNCIL MEMBER RAMIREZ.
THANK, THANK YOU, UH, FOR THE PRESENTATION.
AND WE, WE DID SUBMIT SOME QUESTIONS, SO I'LL JUST, UH, PIGGYBACK ONTO WHAT OUR CHAIR ASKED ABOUT, UH, FT E.
SO IF OUR COUNT IS CORRECT, UH, TOTAL IS UP ABOUT 30.
AND, AND IF I UNDERSTOOD YOUR ANSWER, THAT'S DUE TO WHAT, UH, IS BEING TRANSFERRED OVER FROM FLEET, IS THAT RIGHT? SO, SO COUNCIL MEMBER, THE, MY ACTUAL BUDGET DID NOT INCREASE BY 30 FTES.
MY, MY ACTUAL BUDGET ONLY INCREASED BY FOUR FTES.
UH, THOSE WERE, UH, ONE PERSON FROM FLEET AND THREE PEOPLE FROM THE GENERAL SERVICES DEPARTMENT.
SO, UM, WHAT WE WANTED TO DO WAS TAKE THE TIME OUT TO EXPLAIN TO YOU IN WRITING VIA YOUR QUESTION, TO EXPLAIN TO YOU THAT'S FINE, EXACTLY WHAT HAPPENED, BUT I JUST WANNA MAKE SURE THAT WE ONLY INCREASED FROM LAST YEAR TO THIS YEAR.
WE ONLY HAVE AN INCREASE OF FOUR FTES.
BUT WE'LL, FOR, WE'LL EXPLAIN THAT TO THAT GREAT.
SEEING NO OTHER QUESTIONS, WE WILL MOVE TO A PUBLIC COMMENT.
DO WE HAVE ANYONE THAT WOULD LIKE TO PROVIDE ANY PUBLIC COMMENT TODAY? NO.
WELL THANK VERY MUCH FOR THE PRESENTATION.
UM, WE, WE WILL NOW, UH, ADJOURN BEFORE WE ADJOURN.
I DO WANNA REMIND FOLKS OUR NEXT BUDGET WORKSHOP WILL BE TOMORROW, MAY 15TH.
WE'LL START AT 9:00 AM WITH PARKS DEPARTMENT, 10:00 AM DEPARTMENT OF NEIGHBORHOODS 11:00 AM LEGAL DEPARTMENT.
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THANK YOU.