Business Services Overview

Fiscal Year 2021/22

Mission Statement

To partner with City departments and facilitate the development of a culture that attracts and retains an effective, engaged, and diverse workforce as well as to deliver high quality business services that support customer departments, the City Manager's Office, Elected Officials, and the Tucson community.


*Beginning in Fiscal Year 2021/22 Human Resources has been consolidated into the Business Services Department. Historical year data can be found at Human Resources.

Programs

The following programs are included in this department:

Staffing By Program


*Full Time Equivalent Employee (FTE)

Budget By Program



Department Expenses

Budget By Expense Category

Budget By Funding Source

Significant Changes

The adopted budget for Fiscal Year 2021/2002 of $ 45,444,420 reflects an increase of $15,885,010 from the Fiscal Year 2020/2021 Adopted Budget. Major changes include the following:


  • Increase in costs by $14,373,510 due to consolidation of Human Resources Department and Business Services Department
  • Increase in work compensation insurance claims payments by $799,580
  • Increase in public liability insurance premium by $1,250,000
  • Decrease in capacity for COVID-19 relief funding by $530,000

Trends

The Business Services Department (BSD) provides financial, human resources, and procurement services to the City and to Tucson's citizens. The department strives to provide the highest standards of financial management and ensure to balance the City's financial resources and financial obligations. The Risk Management efforts in providing department metrics utilizing Origami Claims management software, implementing virtual, and in-person customized training, reducing injuries, establishing procedures and policies, identifying trends, and working collaboratively with staff to educate and mitigate losses is continuous. Public Liability continues to experience increased litigation from varied areas but primarily from bodily injury and excessive force and social factors. Worker’s Compensation has experienced an increase in posttraumatic stress disorders and cancer claims. The use of drones continues to rise assisting with operational efficiencies in aerial photography, construction, inspections, surveys, mapping, and 3D terrain modeling. Providing contractual language and appropriate insurance limits to minimize city exposures and transfer risk continues. Working with the special events team to develop a commercial fee-based activity module will assist with transferring risk for identified events. In addition, BSD continues to achieve excellence in the management of City procurement and related purchasing activities. The department maintains a strategic presence throughout the organization with multi-talented individuals who believe the City’s guiding principle, “One City…One Team!”.

Accomplishments

Employee safety culture requires “early” identification of trends to aid in reducing overall losses impacting the financial health of the self-insurance fund. With the implementation of Target Zero—Get Home Safe the safety culture is beginning to shift with department stakeholders investing in working safer, attending trainings, and engaging employees in monthly safety meetings and/or scheduled department tailgates. Department Collaboration meetings are proving successful, allowing directors and their management team an opportunity to review and discuss trending, assess goals, and determine future direction.


Sustained Industrial Commission of Arizona (ICA) Bond Exemption is based on actuarial liabilities for workers’ compensation claims determined by the actuary in accordance with Government Accounting Standards Board Statement #10 as well as workers' compensation reserves. This is an annual renewal that has a significant overall financial impact if not sustained.


The City was award bond exemption for the third consecutive year and entered a consultation plan with ADOSH to continue efforts in reducing liabilities. Public liability team reviewed 1,111 incidents and paid 482 claims. Last fiscal year this team reviewed 1783 incidents and paid 690 claims. Although there was a realized decrease in incidents and claims, the severity of claim payouts increased during the Fiscal Year 2020/21. This is primarily due to impacts from the pandemic and large payout settlements/judgements/awards. Subrogation billed 544 accounts totaling $940,297, recovering approximately $427,372 by year end. This team also worked with the city’s property insurance carrier for reimbursement of $1.2 million on two large property claims.

Future Objectives

Several technological, legal, and social factors are driving up the frequency and severity of claims. The impact from the pandemic will be felt with worker’s compensation seeing a lack of premium adequacy funding. Challenges will continue to exist with increased post-traumatic and cancer claims increasing nationwide and within the city. The commercial insurance marketplace continues to “harden” with reduced capacity availability resulting from rising insurance losses, growing emergence of litigation funders, higher jury awards, more liberal workers’ compensation claims, legislated compensation increases and new tort and negligence concepts. Public Officials, Policy and Auto Liability coverages are expected to trend higher causing rates to increase. Police liability due largely to civil unrest and excessive force is a growing concern with a high potential for lower capacity, higher self-insured retention, and higher premiums.