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SUBJECT:

Amendment to Salary Resolution: Category B (SEA-Represented), Category G (Unrepresented Confidential), Categories D/E, F, and K (Management), and Category M (Management Intern) Classifications, and Budget Modification No. 10

REPORT IN BRIEF

Because the City’s Budget must be adopted before the salary surveys take place, the City must make assumptions regarding salary adjustments during the development of the Budget. Based on the data at the time of Budget preparation, this year’s Budget included an increase of 4.76% for SEA and Confidential employees, and 3.00% for Management. The results of the salary review require additional funding in the amount of $1,546,928 for the General Fund and related Funds. Staff recommends several funding sources to meet this additional requirement, as described in the Fiscal Impact section of this report.

BACKGROUND

The recommended increases for Management pay grades are consistent with the Management Compensation Program, and are based on market comparison, and follow two of the guidelines of the program which are, to improve the City’s competitiveness in the market place and to assure equity within the organization.

EXISTING POLICY

The Office of the City Attorney has three management classifications, and the City Attorney was provided with the survey information used to establish the salaries for these classifications. The City Attorney concurs with the recommended salary increases, and fully supports this action.

DISCUSSION

Included in the recommendation for management classifications, is to change the pay grade assignment of the Director of Public Safety classification from pay grade D-2 to D-1. The Assistant Director of Public Safety classification is assigned to pay grade D-2 which creates an inequity. The recommendation to place the Director of Public Safety classification at pay grade D-1 is necessary to maintain internal relationships, and to preserve market competitiveness. In addition, a recent job evaluation of the position using the HAY point-factor job evaluation system ranked the Director of Public Safety among the top level of department director jobs.

FISCAL IMPACT

In analyzing potential funding options, staff looked for reductions across many funding sources to minimize the impact in any one area. Services where activity levels had dropped, such as Development Services, were examined closely. All reductions were reviewed for their effect on service level. Staff sought options with the least impact to service levels and external customers.

Based on these parameters, staff recommends the following funding reductions:

Funding Reduction

Rental Rate Funds

Facilities Management

$100,000

Information Technology

$200,000

Infrastructure Projects Funding

$250,000

Public Facilities Space Issues Funding

$100,000

Fiscal Uncertainties

$100,000

Increase Vacancy Factor

$347,546

Departmental Vacancies

Information Technology-1 Sr Programmer Analyst

$106,668

Information Technology-1 Print Shop Operator

$71,442

Parks & Recreation-1 Staff Office Assistant

$56,772

Public Safety-1 Fire Protection Engineer

$113,562

Public Safety-Haz Mat Inspector Hours

$18,835

Public Works-1 Administrative Assistant

$82,103

Total Departmental Vacancies

$449,382

Total Funding Reduction

$1,546,928

Budget Modification No. 10
Fiscal Year 2002/2003

Current
Budget

Increase
(Decrease)

Revised
Budget

Expenditures:

General Fund

Infrastructure Fund Contribution

$2,319,195

($250,000)

$2,069,195

Public Facilities (City) Space Issues

$1,239,674

($100,000)

$1,139,674

Fiscal Uncertainties

$715,826

($100,000)

$615,826

Program 302 – Public Works Support Services (1 Admin Asst)

$512,790

($82,103)

$430,687

Program 422 – Fire Services (1 Fire Protection Engineer and Haz Mat Inspector Hours)

$16,253,010

($132,397)

$16,120,613

General Services Fund

Facilities Mgmt – Equipment and Furniture Replacement

$156,082

($100,000)

$56,082

ITD – Technology Services Equipment Replacement

$1,096,442

($100,000)

$996,442

ITD – Communication Services Equipment Replacement

$430,904

($100,000)

$330,904

Program 760 – Communication Systems and Office Equipment Support (1 Print Shop Operator)

$297,052

($71,442)

$225,610

Program 766 – Information Processing (1 Sr Programmer Analyst)

$3,620,898

($106,668)

$3,514,230

Community Recreation Fund

Program 640 – Leisure Services (1 Staff Office Assistant)

$2,748,306

($56,772)

$2,691,534

The adjustment to the budgeted salaries to reflect the new salary rates and vacancy factors will be made to the salary tables in the Budget and Financial Systems for all Funds. The effect will be an increase in the budget for Salaries and Benefits for all City programs and projects.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1. Amend the Salary Resolution to reflect the new pay rates, and approve Budget Modification No. 10.
2. Amend the Salary Resolution to reflect the new pay rates, and approve an alternative Budget Modification.
3. Amend a portion of the Salary Resolution.
4. Do not amend the Salary Resolution.

RECOMMENDATION

Staff recommends amending the Salary Resolution to reflect the new pay rates, and approving Budget Modification No. 10.

Grace Kim
Finance Manager

Reviewed by:
Mark Gregersen
Director, Human Resources

Mary J. Bradley
Director of Finance

Attachments

1. July 2002 Total Compensation Surveys for SEA Benchmarks
2. Resolution with Exhibits A, B, C, D, E, and F
3. Funding Recommendation with Detailed Funding Reductions

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