A look at city worker, council member pay
A hot topic at most City Council meetings is how to cut expenses so the city can match expenditures with revenues for the new budget year beginning July 1 and not be forced to dip--or dip too deeply--into the city’s $38.8 million “available for use” reserve fund.
So far, council actions range from large--examining options for police services to trim the cost of the city’s largest annual expense, close to $12 million for public safety--to small--seeking donations from residents and businesses to help pay for July 4 fireworks.
But one area involving significant outlays--salaries and benefits for 92 city employees--won’t see further cuts for a 15-month period that began July 1, 2011, and runs through Sept. 30, 2012, according to new pay resolutions adopted at an April 3 council session.
Major cuts in employee expenses were taken in the 2009-10 fiscal year, and extended each year since, including no salary increases, pay-for-performance bonuses, vacation buybacks plus a 4.7 percent pay cut due to an eight-day furlough program.
The last increase for city workers was a “cafeteria plan” boost from $833 to $945 per month “first to pay health insurance premiums” with “any residual amount...received as cash or applied to the employee’s deferred compensation,” effective Jan. 1, 2011.
Per month salaries for six management employees range from $9,867 to $16,600, for 20 mid-management $4,472 to $11,241 and for 66 miscellaneous workers $2,602 to $6,645. Life, dental and vision premiums are city-paid.
Despite talk last summer that retirement plan changes were being negotiated, the contract is the same as in previous years, including the city paying each employee’s seven percent portion to CalPERS, with the amounts reported as compensation for tax purposes.
In a related matter, I sent my annual e-mail to Finance Director Dave Christian for an update on council member compensation. His response is more complete and detailed than information currently on the city website.
Members took a dip in pay on Feb. 1, when the state disbanded the city’s Redevelopment Agency. Losing $30 pay for agency meetings--held concurrent with council sessions--cut monthly salaries to $500 from $560. They also get a $36 monthly cell phone allowance.
The $60 drop reduces by $5.02 the monthly amount the city pays to CalPERS as a contribution for retirement. The new total is $104.85 monthly for each participant, excluding Jim Winder, already retired.
They are eligible for the same “cafeteria plan” benefit as full-time employees. Nancy Rikel and Winder take $945 monthly, with Rikel applying $459 to health and $486 to deferred compensation and Winder $945 to deferred compensation; John Anderson, Tom Lindsey and Mark Schwing take $833 in deferred compensation (all in a 401k-type plan).
Members also qualify for the city’s self-insured dental and vision benefits “as needed,” with the city paying a $9.20 monthly fee each. Based on marital and dependent status, the city also pays, monthly, $21.45 each for Anderson and Lindsey, $14.30 for Schwing and Winder and $6.77 for Rikel.
So far, council actions range from large--examining options for police services to trim the cost of the city’s largest annual expense, close to $12 million for public safety--to small--seeking donations from residents and businesses to help pay for July 4 fireworks.
But one area involving significant outlays--salaries and benefits for 92 city employees--won’t see further cuts for a 15-month period that began July 1, 2011, and runs through Sept. 30, 2012, according to new pay resolutions adopted at an April 3 council session.
Major cuts in employee expenses were taken in the 2009-10 fiscal year, and extended each year since, including no salary increases, pay-for-performance bonuses, vacation buybacks plus a 4.7 percent pay cut due to an eight-day furlough program.
The last increase for city workers was a “cafeteria plan” boost from $833 to $945 per month “first to pay health insurance premiums” with “any residual amount...received as cash or applied to the employee’s deferred compensation,” effective Jan. 1, 2011.
Per month salaries for six management employees range from $9,867 to $16,600, for 20 mid-management $4,472 to $11,241 and for 66 miscellaneous workers $2,602 to $6,645. Life, dental and vision premiums are city-paid.
Despite talk last summer that retirement plan changes were being negotiated, the contract is the same as in previous years, including the city paying each employee’s seven percent portion to CalPERS, with the amounts reported as compensation for tax purposes.
In a related matter, I sent my annual e-mail to Finance Director Dave Christian for an update on council member compensation. His response is more complete and detailed than information currently on the city website.
Members took a dip in pay on Feb. 1, when the state disbanded the city’s Redevelopment Agency. Losing $30 pay for agency meetings--held concurrent with council sessions--cut monthly salaries to $500 from $560. They also get a $36 monthly cell phone allowance.
The $60 drop reduces by $5.02 the monthly amount the city pays to CalPERS as a contribution for retirement. The new total is $104.85 monthly for each participant, excluding Jim Winder, already retired.
They are eligible for the same “cafeteria plan” benefit as full-time employees. Nancy Rikel and Winder take $945 monthly, with Rikel applying $459 to health and $486 to deferred compensation and Winder $945 to deferred compensation; John Anderson, Tom Lindsey and Mark Schwing take $833 in deferred compensation (all in a 401k-type plan).
Members also qualify for the city’s self-insured dental and vision benefits “as needed,” with the city paying a $9.20 monthly fee each. Based on marital and dependent status, the city also pays, monthly, $21.45 each for Anderson and Lindsey, $14.30 for Schwing and Winder and $6.77 for Rikel.
posted by Jim Drummond at 12:00 PM
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