HomeMy WebLinkAbout2008 09 15 Documents Referenced During WorkshopDate: September 15, 2008
The attached documents were referenced during
the September 15, 2008 city Commission
Workshop.
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CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708-2799
Telephone (407) 327-1800
Ronald W. McLemore
City Manager
MEMORANDUM
TO: Mayor and Commission
FROM: Ronald W. McLemore, City Manager
DATE: September 15, 2008
SUBJ: Compensation
At the September 8, 2008 City Commission meeting the City Commission directed the staff to develop
a method for addressing compression. Also, the question has been raised regarding upgrading the
pension plan for police officers providing for the 30 and out model, which provides for full retirement
at any age with 30 years service.
Compression
Compression is a theoretical condition that exists when persons with dissimilar years of service have
similar penetration on their pay range.
The important question about compression is, so what? What does it matter? Is compression just a
collective bargaining football to get more money into employees' hands, or is there something of real
substance involved? The answer is clear. The function of compensation is to recruit and to retain
employees. Beyond the extent to which compensation is needed to recruit and retain a highly
competent and motivated workforce, no additional considerations are needed. Some would argue that
a person's knowledge, skills, and productivity grows as time in the position grows, therefore, pay
should grow accordingly. Others would argue that that more tenured employees making the same
money as a newer employee cause morale problems. Again, the answer is this, is specific
considerations of these issues needed to recruit and retain a highly competent and motivated
workforce.
Proposal
As directed by the Commission, this proposal clearly deals only with the issues of compression at this
point in time. It specifically and purposefully does not deal with the issues of pay ranges, merit pay,
and across the board raises, etc.
Relatedly, the proposal provides aone-time adjustment to address the penetration of employees in
grade relative to other employees' time in grade.
Previous review of the City's pay plan by compensation specialists at the Central Florida University,
and the private sector found that no significant levels of compression existed within the Winter
Springs Pay Plan. Therefore, you would expect that two years later to find only moderate levels of
compression.
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Based upon the model that we have utilized which is quite normal for governmental pay plans, about
34% of the employees require some degree of adjustment accounting for 1.4% of the payroll.
The costs for these adjustments are as follows:
$$$ % of Payroll Mi11aEe
General Fund 183,325 1.6% .091 mills
Utility Fund 14,337 0.5% n/a
Development Services Fund 11,228 3.4% n/a
Total 208,891 1.4%
Police Pension
Based upon analysis performed by the City's actuary the cost of providing the 30 and out pension
benefit to the police department is as follows:
$$$ Milla~e
550,000 0.272 mills
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CODY Study
Implementation Illustration
FY 2009
Pay Grade: 28
$34,493 - $52,51 fi
$34,493
0
Min
(New Pay Grade)
$43,505
5 10
Midpoint
(Years in Grade)
5
$52,516
• Performance Adj.
Eval. Adj.
Score Factor
4.0 100%
3.5 75%
3.0 50%
2.0 25%
20
Max
i~ _ 1
coDY study
Summary of Implementation Costs
FY 2009
One-Time Salary Benefits on .Gen Fd Cost # Affected
Fund- Adj. Adjustment Total Cost Distribution # Employees Employees % Affected
3eneral Fund:
Admin
City Clerk
Public Works
Parks & Rec
Finance
Information Services
Community Development
Police
Total General Fund
Percent of Payroll
Utility Funds
Percent of Payroll
Development Services Fund
Percent of Payroll
Total All Funds
Percent of Payroll
5,599.01 1,455.74 7,054.75 4% 5 1 20%
170.13 44.23 214.36 0% 5 1 20%
3,845.84 999.92 4,845.76 3% 20 2 10%
9,082.11 2,361.35 11,443.46 6% 21 4 19%
12,281.56 3,193.21 15,474.77 8% 15 6 40%
2,956.59 768.71 3,725.30 2% 10 3 30%
758.88 197.31 956.19 1 % 7 1 14%
110,802.28 28,808.59 139,610.87 76% 88 47 53%
145,496.40 37,829.06 183,325.46 100% 171 65 38%
1.6%
11,378.84 2,958.50 14,337.33 49 9 18%
0.5%
8,911.61 2,317.02 11,228.63 5 3 60%
3.4%
165,786.84 43,104.58 208,891.44 225 77 34%
1.4%