Laserfiche WebLink
• Closed Session on Labor Strategy <br />Overview of Forecast Model <br />• All values based on historical actuals (6 years) <br />• Revenues by line item <br />• Expenditures by major category by department <br />• Personnel line items, contracts, commodities, fixed charges, <br />capital, debt service <br />• Payroll by labor unit by department <br />• Applies growth factors by fiscal year, Cost of Living Increases <br />(COLAs), PERS rates, and medical insurance premiums <br />• Scenarios - test sensitivity of variables, instant display of results <br />• Group variables by low, moderate, high levels <br />• Flexibility to adjust any given factor <br />• Useful for budget preparation/presentations, labor negotiations <br />Forecast Assumptions - Dept. Structure & Personnel Costs <br />1. Departments to reorganize structure based on what the City can afford <br />• Backlog of general fund vacancies eliminated <br />• Replaced with requests from departments for new positions based <br />on meeting target budget figures <br />2. Implements the expiration of compensation deferrals <br />• Returns 80,000 hours of work, or the equivalent of 30-40 positions, <br />to departments for employees represented by SEIU <br />• Increases SEIU employees' net compensation by an average of <br />10% <br />3. No New Programs or Services <br />• Department Directors charged with recreating the structure and <br />services provided based on dollars available <br />• Councilmember Martinez indicated that City departments <br />have experienced significant cuts throughout the year; <br />Strategic Plan may change focus of departments. <br />4. Continues to address Public Safety Costs <br />• Continues fire services contract with OCFA <br />¦ Councilmember Benavides noted that Fire retirement system <br />changing that may affect contract amount. <br />• Examination of potential cost savings in Police Department is <br />underway <br />¦ Councilmember Martinez noted that public safety is top <br />priority and in line with other programs such as code <br />enforcement. <br />5. No Increase in Negotiated Compensation <br />• Assumes 2 years of no salary increases <br />• However, merit increases are included which will add about 1 % <br />growth annually, even with no salary increases <br />• Every 1 % salary increase equates to approximately $900K <br />6. Increases in CalPERS and medical costs are included <br />CITY COUNCIL MINUTES 2 APRIL 16, 2013 <br />1 0C-2