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HomeMy WebLinkAbout141-84 RESOLUTION• RESOIITIZON NO, 141-84 A RESOLUTION APPROVING IN CONCEPT THE EMPLOYEE CLASSIFICATION AND COMPENSATION SYSTEM RECOMMENDED BY para, INC. • WHEREAS, the City of Fayetteville has retained para, Inc., to prepare an employee classification and compensation study for the City; and WHEREAS, para, Inc., has completed a salary survey of selected local employers and selected municipalities; and WHEREAS, para, Inc., has submitted a proposed employee classification and compensation plan for the City. NOW, HEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYEPTEVILLE, ARKANSAS: That the Board of Directors hereby approves in concept the employee classification and compensation plan recommended by para, Inc., a copy of which is attached hereto marked Exhibit "A" and made a part hereof. lii H t(!{ PASSED AND APPROVED this 4th ria 6 i - ✓� iI w ? LN r day of APPROVED: By: December , 1984. :711 1 SALARY SURVEY DATA The following pages present salary survey data from 18 cities and 25 local employers who responded to our questionnaire. All 18 cities responded, though the data for three of the Cities - Jonesboro, Little Rock and Pine Bluff - is not complete in a. number of classifications. We surveyed 35 local -employers and 25 responded. In general, maximum base salaries of other cities are lower than in Fayetteville. This is the cafe because most of the cities compensate employees with additional pay in what we..refer to as Premium Pay (e.g., longevity pay, educational incentive pay, merit pay, etc.) In making our recommendations regarding base salaries, these differences are taken into account. Regarding local employers, the maximum base salaries of this group are also generally lower than the City of Fayetteville. Local -employers generally do not pay much in the way of premium pay. The base salary information from these surveys is combined with employee benefit survey data to determine a "total cost" comparison. Then a salary and benefit package for City of Fayetteville employees is recommended later in this report. As a result of collecting initial data, it became apparent in the fire service that most cities had some type of Engineer/ Driver classification between the Firefighter and Lieutenant classifications. Consequently we conducted a telephone survey.ofi each of the cities to gather information on that class of employ- ees. 5 Fourteen of eighteen cities surveyed have this classifica- tion. For those cities having the classification, approximately 25% of the employees in the Department fit into this classifica- tion. On a national basis, this classification is being g radually eliminated as the duties are assumed into the basic Firefighter classification as are frequently emergency medical, paramedic and fire inspection duties. The average compensation attached to this classification beyond the Firefighter's maximum base salary is $1,120 annually among the„cities surveyed. It is o ur recommendation that the City of Fayetteville address this issue by creating a Fire Engineer classification with approxi- mately 10 to 12 positions being open for promotion. We would ✓ ecommend that the salary range for this classification be one pay grade above the Firefighter Classification in the Pay Plan. Proper testing and qualification requirements should be estab- lished by the City as for other promotional tests. 2 Cy E SALARY RANGES COMPARATIVE B 23,707 25,317 C W coEc cc to c X P O 2 <J N N 0 1- I N •'+ C N O .. ›- 4./ 1 0 CV C 6 11 0 W M. 21 rl r = G £ 1� or G C. — £ f 0 C. U 17,909 22,922 N • 0 M • ti Ltl 0 •M CO 0 •N N N U LL N- • N Q J 0 1-O'b C 1 0 O 1.0 O) V 0 p1 v 1n P. O OJ O P M 0 M ? U QX r^ r^ P ▪ •w 0 N O N U1 N W i G M 0. < 1n 0 1� 1 10 0 10 V) C' O Q N N N f'f M C M 0 0 N 6 10 — 01 N t- 0 C WI O N U1 N 0 N.. 6 U. = M G N Cr) N 0 10 1. z1 Cr CI £ Ni O e C N 0 Cr)0 H 21 M M N N N M N m CC LLI tl G ~I In 0 N 10 - 6 e 01 C 1) LL 1 ae G, P M O) rn £ I M '+ • ▪ (-4 N Cr OI U G M 01 10 COCO LL = t▪ ') 01 N LLvor• • F £ • N N N CC J U Z o 0 0 X 10 0 O Cr0 0 14.1 BARTLESVILLF 0l 0 m O M N N 01 CV •-• 0 1n N n - O• Po O• O CO CO = U• C I- CC a X ¢ 2 N 6 N 0 ▪ 1- CC I- C O CO LL = JACKSONVILLE N N n CO N 0 01 H CI O N OJ CO Cr < 13,405 17;595 20,139 26,995 23,774 30,202 0 0 rn CO in N • W n N N v 0 N N tD O CO C to O\ 0 M O M CO b ..-i CO N N '"1 10 01 0• m 0 tD N O)1 • • N • O 0 N or fn b OiPcr CV N 1l1 P 0 N N m co f7 M 0 c 1L m • •rn e r CO CV01 A N CO Q N 10 CO• 0 rod - N N H10 N OD 0 n N 01 • Lel n CO e4 ell el N 10 CO C•-•• 0 In ^ CO e CC 1.0O O Yf n ro C11 CV VN) 1n 0 01 0 H 01 p f') N N N 1n 1.0 m N N f7 01 or 0 f0) N 0 0 M M N 10 0 !� 0 1n N N 1� n 0 2) CO0 ▪ m- - 0 0 0 0 C X G 1- W 0 LL W 1 Q C CC CC W C C W = • G H 2 2 W CD r 2 W I— 0 O U 1.4 r m N 00' C lc lc 6 y) — W J G 0 G C = J C C W J C_ 1 S_ 2 X W W —^ G C 2 d N C 2 0 C X X O O G "" • ' 0 X£ 2� J J Cl -11n N !- f FAYETTEVILLE 1 LOMVARATIVF BASE SALARY RANGES TECHNICAL LLASSIFICATIONS I- 2 W 0 2 W CI e CV •-• >CI n0 n X W n 0 m .•1 C f'] N N N eN CC 021 a, en • I- s N 0' •.1 N el W C r 15,988 22,649 US .0 en N 01 CO Cr 0 1 17 m D CO CO NI 0 e v N 15,469 23,201 29,059 38,931 O N X - e b 0' .o Cr m 01 DV f7 N r O n N n • b N N N N N CO N 0 e 1 b b e I. .. n 0 0' a el • 1,. DJ N C • Oi 0 0I 0 N r en N O eT 01 OZ. N. 0 10 N CC N CO V N - 21 e0 •w 1 N 0' b le 01 .• \ b ID 2 I en c 01 n m co H1 e'1 N N Cr N 01 =C • 0 • • F n N X P Iv 01 N n CO n 0 01 0 b 0 0 O N N ._ - N •-• N N .r re - N N J 1-1 =I 21 0 "1 01 W 01 .1 Cr) N n N b e e CO- D On e 0 0 0 0 0 •• C 2 Cr z CO 0 in b0 X 01/4 Cr• 0 :� e... NJ W A 0 N b n e'1 1`l X 10 b O • 10 e7 0u >4I c c 6 CC O 1 W O c CZW LiJb 2 CO e e N OI N N Cr en 0 . N 11 m e 0 ▪ Cr N e. CO N N •• ."i ^ 4-4 N 10 Cr e D 11 01 N 0 10 az 01 10 S n e e I. 10 O e el le e• l 444 el 44-4 0 e 10 0 Cr b 01 1D I1/41 en e 0 +) e1 N t1 S In O b m :V N BARTLESVILLE BROKEN ARROW FORT SMITH JACKSONVILLE Z) 10 0 CO 01 0 N e N N 10 to O D N fD N .1r 0 W CO 2 2 N r. W W J C Z 6 3 O 0 6 -, ^J J LITTLE ROCK 11,378 14,934 14./22 19.510 25,709 34,426 W W 2 W J c W = Cr W0 b 2 CO tel b Cr 0 4 C r N ¢ 2 2 0 C 2 n 2 0. = 2 12,958 15,558 15,558 18,782 STILLWATER TEXARKANA, AR D e IOM .N+ e N 4 Inv Iv. ID v. eD 1-4 O CO v. Tv O N 01 O1 N N CT en r\ N N 0. 0 N.- CO S Cr • 01 - N TEXARKANA, TX 6.1 c OC W c FAYETTEVILLE • V s COMPARA1IVE BASE SALARY CLASSIFICATIONS W u 0 N Q N M '0 e N b N N 0 b O C O O i0 O O N b n M CO 0 N M e a 0 0 C� 0 Q 0 Q b e XI N n h CO 1n 0 a b 0 N M Q C O 0 O .....10. � T D• f O'. M b in n b — .-• 6 0 M Q b • O t0 M Q t- N N M Q N N M N M e Q M M e N N N M N N M M CO e M M n 0 1-. CO O b N N b N M1 co O O e Q• 1, 21 M• co — M 'El l ` bO b H') b M b O CO N N N• M M N N M N N 04 W •I . S C. CCU:fi c of W i W Ci2_I LL IC. CO w2. -IZ F F- wl t LL XIY RACT NOT SETTLED e bN N e b 0 0 - e 0 0 tr-.0 e N CO 0 N o. N M 0 N 0 0- 0 0 e e 40 '0 b 0, O) N 0 0 O e N 0 r N b M e eCPI N ti N •� N N N ti b O ill O M 0 CO N N N N N N N N N N b M 0 e b r- N N 0 0 N 0 Cl en 0 0 1-•b M N n CO COO M 0 m N CD in0 co b 6 b e e •-`le .. N 0 0 b Q • . . 10 M CO .-• .ti .n .ti N cv 0 .-1N •-tN N - N CO - N N r 0 0 N O 0 Y 0 M Q' 0 0 M O O. 0 e Y. .r N N " r.. .+ N N Q CO ON e e N O M b 0 N 1. 0 0 O e ^ e O - .N N . I-. "I ". 17,434 19,054 O a O C` 60 CO r-. 0 r 0 n 0 e e 0, 0 CO 0 b Cr b N CO e 0 .• : CO Cln .-� N N . N N N CO S 0 60 - 0 0 e O r n CO 0 03 PS 01 0 0 0 0 Cr • P 0 e CO 0 rn- ei O 0 b 0 N CO 0 b ^ 0 0 0 M e 1� 0 b T. b N CO n M 0 a CT W O0 M 0 O• CO e• N n — H — N N N M b N 0 0 O —en 0 CO CO en O — b M Q O O b W M M 10 0 M 01 P Cr Z CO 9 CO b W 2 n - - O .b.+ .b-. el O b b CO0 .1lfi .e+ 0 .e -i .0. .bn .br 0 Z N e 0 6 M M 0 0 M M CO t0 O O O+ 0 0 M e N 0 M N n N *0 N P. e 0 N — CT 0 0 CO b U1 C. r. N CO N N 0 P Q CO M n CO O Q P• 0 6 e CO Q n O 01 Q 10 a M M 0 0. N Y'f ^ ti Z 0 rM e V b Q O. M 0 b 61 - • ^ 0 0 b b 0 0 0 0 N ^ M N N b M 0 CO ^ N OD M M - b Q un e 0 e 0 b O 0 O - ~ — in M M 0 M u0 M Cn e N N M Q6 M N M Q BARTLESVILLE BROKEN ARROW f vl0O HOT SPRINGS JACKSONVILLE 0 W O U m .2.. w N ILI „I CC 2 0. 3 O 0 C r, ^J J LITTLE ROCK 5 C X 2 w W La- J W 6_ Q_ 0 W = Q c a et K 0 2 CO... N 0 S Y' 0 et CC C z J Q Cr C CC CC GS S Y r W W et le 7,e. X W 2 VI C .,• 0 0. F W WO. S 2 0 L C N N f f Q FAYETTEVILLE 4 a J• v X1 O N S 10 V; CO CO •-•• N OJ 9 0 10 0 0 0 G C1 C •-• n x N 0 CO N X S — C O 10 O 6 O C Q J1 WIX !) '•1 Q N 0 T u 10 Cr n Q 0' (') T .J Z 1h N UO C £ 1C) •-• 0' - 01 '0 •-i b r1 - .0 u1 Cr n n - N =I IW VI \! e•-•- \I N N N N •-• N V r •-• N N £ W 1 IX) (NJ CO n 0• e N O 0� •-•(0CC C CI 71 X IDN 0 - 0 •-• 0 en O 0 c) C Z' S C Q CC 0• 'Cr - e7 e N n 01 0• 9 T 6 10 1 OI£ I OJ 01 01 ,0 n 1O W u N 9 — 1n m c1 X CO v L-11 [l .�. - .-� - - - - N N - N - — — — — — C LLI Inc m CO e m w o Q 0' w 0 0 o Cr IC e n X I N n Q 01 - C •'+ 0• N 01 Q 0 1•I Cr N 1() 41' Q 01 11 Cr CD N — C rn a t0 k0 — Cr Cr Cr II LLI Q Cr N N f'1 !V O Q J1 f'1 Cr N N r, PI +) (7 0f S' Q e O O O X X 0 CO •O CO 0 m X 0 LO 2I n O 0 N Cr O u) e Cr £ 0 01 10 0 b ") 10 0 DI N 1V r) Q N Cr N 17 -I 2101 CO W 10 n - O 0 u') .0 m e 0 0 u 0 0 0 N CIla I • N Q 01 Cr P N e T T V) n O 0 Cr Cr 10 n v.-. =101>c en 0 0 0 Q T 0 {O r. 0, O N Q e e n O. 1-1C .£ 01 Q ••-i 01 1O n rn — O ^ T .c+ — n 01 O (7 Cr =r. N Y N — N r 11 Cr N N N N y — N N Lair, J IU1 - m 10 O n e e 0. b'• b O Q .u, 0 9 O T. a 10 N 0 T n u S O n G ill !,'CZ UI CO S C •I n e 10 O 0' CO O 10 (n O r I_il I£ — 0 •.. X 0 N. Pe n01 'n CO — r• J.., N N N N N N N N N Cay. C. COMPARATIVE BASE W 0 OI C - e IS ` N r'1 6 C e la 0• 0 0' n N 0 0 n 9 1 W e N :V Cr • n N n N Q DI 0 01 10 CO X N n 10 UXI Z 1I m r u N Cr N N CO Cr n X 1Di V 10 0 LL EI 0 01 n 6 10 Q m - O 9 - Cr 1•) N CO 6 10 n O^ LL u 0 WC V7 N e 01 N 0 Q in 01 O 01 e 9 O 0 O � U 6 14I 0' N N 1() 6 en e O 01 OJ t(1 0 N Q N ID* 21 n 10 I in 10 01 OJ W CO 0 01 !l .DI u Cr N J -•• H• O £ to Q O DI N •-•1[) 10 Cr 2 — Xfn (7 1') VI e 10 Q N O. f 21 £I N N e n_ 6 Cr 01 CV CO 01 O .u• S (D- S 01 X. - - 0 0 ua FI - b Q 9 - 10 9 (7 01SN. 9 re n e 0 0 n DI 01 r) N C n Cr e7 BARTLESVILLE BROKEN ARROW FORT SMITH N LD0 2 JACKSONVILLE COUNTY POLICE N Cr X O) Cr 10 01 9 Cr m O r 9 N 9 .., X Q IX Cr m e 1 u 01 N N CO n X. 1O e 61 X N N 0 0 10 51 X. r LII Cr S S N DI Cr - N - - N - Y u o O 2 CY W Cr CO W o U F J C]^ W a (0 = N W J O W J C 1- S Y 2 C 3 y 2 N C O O 6 q J X Z o J J Y b PINE BLUFF CeC 0 G SPRINGDALE TEXARKANA, AR TEXARKANA, TX FAYETTEVILLE COMPARATIVE BASE SALARY RANGES 113 ".T; M.• 2 La O N 0 C 0• N0 f0 1` 0 C 0 17 0 b e 2 0 11 CO 0 N O 01 CO 0 11 0 0 10 O) W Xi f1 N 10 1"...l0 01 N 0 C — Cr N 11 01 ID I- 6' 2 r' N un N 01 Q 1!) In 1l1 In ° 1- 0 n 1A n 11 Cu N ••N N N N N PI N N N N N C IL C. 0 0 11 0 0 0 0 O O e 0 O) Q. O• ^ CO - r _ - 10 N 10 Q• n m N .n N 2_I If) C I� r )D O) in N f1 Fl r iI n Cr, c0 I. N O) ID 10 ID .+ n (1 0 W N ^ .+ ^ N — — .-� N N r -I N N W C NI D: 0 7 w =XI O CI Nf� N 0 • z'1 u r c 0 18,865 25,313 0 0 C CO 0 0 0 N Ill m C•1 en 10 00 m 0eC O) co e Cu Ih. en e 4O 1h n n r, in ch .. el CO N N N N 0 N — 10 .r 0 H 10 01 N N N e e O) 0 1h. r )0 10 10 1D D` 0 N — n N 10 0 CO CO I% 11 VI N N O) 1- m 10 r N N M. N N N 1D Q 1.. IO ID • 10 Q Q N MI COmo 0 0 0 0 e N N+' N 0 10 10 N N IT - O 0 CO 0) r e CI in in N. ID N N mN N Q 0 mI 0 0 O) 01 0 e N N O Z O) - 12 N O) 0/ 11 S I • e O 0 O 1� 0)CeI 11 MI P co a> VI 0 P CO n m in el ID N Ill C 11 0 N 1. 0 CO LI C W N b O 1\ 10 IO I) 10 N CO N O Q N ▪ O Y O) 0 C CO t1 11 0 0 0 0 111-.0 0 1. C\ 0 C X () O) 1� P 0 0 CO O Q e e •"' Q e O QI 01 I r A a .r O 11 H) 1'1 Q N ▪ ^ ▪ e O !1 ID W U 2 N ID 10 — Q ID N O ID y 10 0 e N Q 10 ID 6 O O) 01 O 0 -..I I. 11 0 0 r- 0 0 0 2.2 .-. Q IO - CO ▪ • 11 Cr) 1.- 0 O) a • • 1� ID 0' N W 01 r� ^ P 0 'tT ^ - CO 0 0 • •• - CO0 r n L BARTLESVIILE BROKEN ARROW JACKSONVILLE U 4 W ¢ W0 C 6 W O 6 O U r W J O 0 2 2 W r 0 0 N 0 W J 6 O C .2.. W ▪ J C r Y W W 2 6 3 = Z V) ` 0 C O 0 6 6 = 0 D. S r D. C N 7 STILLWATER C X 6 r • Q Q Q Q WI ]C ]C :) QC C 6 K La W W W CC r r 6 FAYETTEVILLE 1 f i 2 Q_ xI f I- 2 • • el Q O P1 Q co N N N CO IN LO 0 N N CO Q CS N N 01 01 tO M lY I(I 17 IN Q O. Cr) N 01 N Q Q r. N n o LC) In 0 M1 N N CO N N n ON N 1.0 O CO N N r '+ N No N r nn N N b 0 O 0 N 01 LC N 01 O IN IN '0 O e b V) CO N in V) 0 0 10 P1 N 0 N 00 r, Q CO IN e t0 O' Q 0 A N PI 01 N CO Q CC N N ▪ N O t1' n t7 Cr) n t7 .0 N •O Q N w 0 2 w H N N 10 ` • .m+ N O w x. M C - ce Q Q• • LJ ^ N N f7 f•1 1 P 6_ 'y N N N N N O 0 0 m 2 • N CF 0' N O_ Zi . O N 'O -r Q N. N O CC N N CC W 1 U CLf CC O H K W O r r O O O N Ki CO - co V) c • Ei r 0 CO N • Cr0 N C•1 N N tl Z, m 0 0 t. fI O • r▪ i - 1J, S r O o 01 N • w Vl N N '0 0 - b n N 01 N r 15,434 19,760 r U Q O 1.0 CrNI 4=0 • '0 N n O O n C1 O 01 VI •-• W N 21,674 27,435 r r Q CO '0 u N N N N IN 'O N '0 C N •^ n A '0 N C'1 - CO - et m Q C O Q (11 N 10 N CO N < O' (• O V P • C O 0 N N VI 1.0 Q O N '0 Y x O Q C1 O m0, - N O 0 'IC N0 0 Q O 0 O Q 01 N N N. Cr CC V1 'D WI 17 0 N .r .r .r •+ r •-• r •-• •-• CC F- 2 2 O N 0 0 Q t0 O 0 Q Q O O N V: Q n '0 y n f7 1') N 0 1-1 2 (^ Q 01 '0 O 0, 'O IN Q 01 • 6 Z '0 r r O 01 ^ .Nr 01 P 0 I- n ri 2 CC un BARTLESVILLE BROKEN ARROW HOT SPRINGS JACKSONVILLE 0 CC W o u CO .2 2 N W W J C 2 C\ 2 O O Q J LITTLE ROCK 11 LL W W J 8 = co N O c C • CLi.1 1.14 N Z U 0 r 0 2 2 1 C 8 SPRINGDALE 12,334 14,851 STILLWATER IF. CO IN CO '0 ul N V CO t0 O ^ N - 0 ¢ I- 0 c 0 r r CC Q W Y Y 0 a a FC x W W l I— I a FAYETTEVILLE 4 • • PLANT MANAGER 2 £ C O •1 H X ¢ ¢1 ini a W CC £I N N Q I N 0. m W 0 •-• O 0 W r W •I CO y N ^ H ` ZI C m 5 ¢ u Nrag 29,328 39,291 15,558 20,841 10 CO N ' < O 10 n CO m '0 O N m 01 in 10 10 1:71 10 10 K) 1n 01 10 N N N m N N N N CO 0 N IIINON el 0 rn 0 O n m 0 10 N N N N N N 10 O e •- N CO N. n 1.0 10 10 b 1O 01 n 01 < 03 C CO 10 0) le e al — N N 411 N N 0 O' m O1 O1 1O n < m CT CO -- Co) Q f� C In N 10 N 0 m 10 v n 1� 1n m 0: < O N NC N m 1n m PLANT OPERATOR 2 £ C°) O C C C 6 CO C < • CA n 119 0 N C m N W O Q < Q m44 'N BARTLESVILLE le ilea CO O N NO N /I- CC •-•• A 1C O Ch m c e ICI et • tO LCI 1n •ti 10 1[) < m 03 Q y CNN 1[) 10 0' 10 1� C O 10 41 114 imal N N N N N el CO 0 NO N O) C m m C m N .m-* N Y < N m m N. In b IN OD .-• < 0 m • - - - N - O 0 < e < < NO m 1. P N. 0 r- Co) m N 0, < 3 CC C S K CC = ✓) Y F- O C C 0 co W HOT SPRINGS W J ccO 0 O m 2 2 N o - W W J C U = 6 3 Q C O ¢ LITTLE ROCK LI- Z W ¢ W J 1- W J H C� 2 CO N ¢ O < c = Y r W W 2 N C 2 0 X £ Z C 0 9 v 10 m < 10 CO O CO N 1a N m m 10 N ON •• 10 u9 ID b --• 0e m 0 b O N 1n In C �+ N m O) < .n 1n re e N e 0, m N m m < b N N N O1 SPRINGDALE C < Q 1- W 0 6' 0 • Q W Q Q C 2 Y Y Q ¢< >c r W W N 1- 1 • - YETTEVILLE ti 3 LOCAL EMPLOYERS COMPARATIVE BASE SALARY RANGES O O m O C t0 t� m N N N m N N Oom 000 O O N N 0 r N.yti 0 0 XI C 0 <I N 0 •N tp r. r O N e e 10'00 0 mo 0 N O N t 0 N CON N 0 0 m N N 0 0 CO b r 0 10 0 N O O e N 0 .1. 4 0 m 0 ' N N N M N gm N N N N ✓ N O e mNmom NtOmO r e m W Mmimm 0 O m 0 m N O `Cr r e t0 0 0 m00 e N N N e m b N •. '4 m m m m 0 N N 0 0 N �r-0 m mm N CO N N O o N W MC N MN 0 CO 0 0..0N N MO.. N for N O 0 m t O N N _ r m r m OW o t 0 0 --- N Nm .-1 .-I m..O$OO 0 0NN 0 ON 00000 0 0^ N m m tC 0O1eOe a 0••r N 0m 1, 0 0 0 0 C N 0 N O MN .. .. .. ..� .... c O l^. N r e m t(. m 00" N C 0 N lD 0 P e 1, X mr0 N•. ANN Comm a .�ttN. o y N Y QI 0 00 Nm 0•-I m.'� WON IN O NtONm 0 1,E W ..N NN no tD Ne 0e0 a m0Mmm e N ..1 .. r .... r N MMM MM .. N - - - r m .. U F 4. ZI 0 01, mm rtc O Cm o tc'm-m CO m O Z C e m N N N C m O N T O P P O m t C t 0 O - a r m O m e P e N•` NNN N O N t [. I0CO --ON Nom r.- 0 000.0/•4 0 0 Q I .. - .r .. .. ..•. .... 141 141 C O N N N O O N 0 C 0 N e 0 N e t0 C N m e N e XI Ct000 O r> r NC -Nm CtC tO•• ‘1;)11 e N Orem N ON-NO•-rt0 'C'G'm OCN' '0 e • • Ne0N 0 01...1tON004"111 NNOO inrt00 N e .. .. .. •. �.. .. ry r... .. ..��.. _.. r.. .. ZI EI O CM N m N C C C OC 00 O N N t 0 P t C O NM N O N 0 N C CM VC C t C t C m N r O Nm N; 000PN VW mom ��N m NI O•. NI 1,0000 CO 00 OCNN im4 0 Ni r.. -i ^I r• NI r - \\NI r... r. r O 0 N 0 MW 0 0 0 N r N N r 0 N 0 X C 0 NtotN.D C O •. 0 MO N0•. r r Q C C •. N..'0ePN N m-tD0e O E . . • .• N m N e V' N m N N 0 m O N ..I O r e e m m .. N m m m m m .. C e N r mm N C 0 N 0No0' r 'Cr 21 C N r N06 N C tD m ID00N.. N- 0 CO C 0 O 0001C e m .. N0 NeN w E I 0 N 0 N m N m m 0 O 0\00'-.o' 0 O 4-4 EMPLOYER 0 0 N .. N 0 O O N O O 404/0V O' C e 0 10 NM 0 0 N N O e .. N N -4'0'.D' 1, N 0 m NM V 1 m O m t D O r N O t 0 m m r t 0 N 0 0 10 . . • 0M my N Co 0 e 0 0 0 .l 1, 0 0 O m O N N 00 0M0 OOOON Oe00 >•.N ▪ e ee rer ON .000 NONO 00°. r e r 1, ON N N..m'm N Nme NN O m N •.O ..0r N..000 0000 0O0 O CO NiNO 541 Gm V C tilts o=•-..]Y.JE ZOO.Om 0FC>3 xN 10 5 X M ECA2 O Z 4 E C F Z till 4 Z I 0 rbi 0 41 C e N 0 E I • . O e O N N 1O N N N 001 e' v O• r N N n n .-I e N e e .-1 01 • o n : In H XI4 O 0 VXI O • Z <1 0 2 N O £ 0 • L] 0 N C O > Y C C 0 O 0 0 0 0 e el e Mb 0. 0 0 0' n e n 01 n e C 6 0 C N < G Z 0 N ..] 6❑-. 0 0 < F v. £I U11 < N r O -. .. C < C CO - O E m r 0 O 0 E <1 1:. n n O N > > < EI1 n 461 461 r F V• F N 10 ▪ n r -m < O V]I N N r`9 C C YI < a -II N.. <1 E C Z 0 0 01 O 41 < Z1 O N 0 O F 1-41 N 461 e 0 EI • O.r 01 0 r E .r r N EMPLOYERS •1 0 0 0 V C CO O E- O. CC aC £ L1 o0 ✓ O X EI 21 O0 CO V1 CO 010 N N CO 111 e 1 n ill • lib 0 01 ▪ 0 •-4 o 0 r 0 r 0 o 0 0 O CO ▪ N N ^1 N N N VI CO O r 01 r N CO e N r 0 N ver a1 r n n n N N C •v n N 0 V VI 0 n O CO 1.0 m le N N N N ✓ C N O e r n elO r n -1 n n N CO n N MN ti V c 0 e e 01© 1)- 01 01 N e n 0 v V1 0 .-I el IN N e O r 0 N 0 VI el ✓ 4601 n 1...-1r r- e-. -. VI N 01 o r n V1 e 1.0n 0 e0r 0 .r - .. N N -. -r -. 00 010 ON O N, a ^100 N N 0 010 Or NQ 1ne 01 N CO Q1 n N N 171 ei r 0, Q e N e el CO CO 0 N el 01 01 ▪ 0 -1 a -. .4 - e1 el r1 .y e1 ^1 O 100 N 00100 00 NC O VIN 01 0 XI r 0 N VI a NN n10r ...1 n-1 e v 4 I 0 e N 0` -+ e P V 1 0 N V 1 n 0 N N VI 0 0 E • • lib • • • • • • • • • • • • O Inn N le 1••• Ne en O N1-InN e v .r .-1 .r N - — .-1 r .-1 .1 N 4-1 44 el .a .. H CO 00 N N000 00 CO V)10rN 0 CO Z 10 ev N 10 e0N 00 10n00-4 N 10 CO. r n 10 r e v 10 0 0 in 0 N 1n 10 e E • • • • • • • • • • • • • • 10 - o 01 000-+ CAID 0100000 CO 01 EMPLOYER 01 I O m CO U0L 4. V= •-inx-arZ O a.00 vIF»3XY 4 CC F0 4i 41 •.1 > Y •+ 4 4> CA. 11 COMPARATIVE. BASE SALARY RANGES LOCAL EMPLOYERS Z OD 0 e 10 •. 0 N y' C P C • n N C N n N r N C N / C '0 C 0 C N N N 0 C m '0 10 N o n o eri P 0 0 O e O n N .. CO V ' m N r CO • N n r N O N n ti E . V "' n • r- N r- 2 2 '-' r .. .+ .. .-. -+ .y - .. 4 " Z V C F V n CO e m e ZZ N m N .0. e P N in II -. • O g E 3 o m N 0 Fri P 0 0 N 0 0 N l0 CO CO % n N N P 10 C O C V' C a N N e 0 N CO 10'C r e 4] r ▪ . O N n N CO e N N n n C 2 r - ti .i .y - .ti .y .ti .+ - Z0 C t v F Y N0 N C. 00 Ne N \0 Z C 2 m N 10 J1 n 0 0 t0 n b - ✓ O Lad a Q n 1.0 0' e in 0 CO • N 4 3 Z E P P1-0 m 00 •yN 0 P 4 E F Z Z a al • VIZ x.11.. L1/41 it EMPLOYER C 10 10 10 e r 0 C 0 N CO P P N fV P O N N in C ml O1/4 101/4 0 N N N N N 01 0 •' P CO r CO N P 0 N N IN - 4-4 - PI - .q ti N 0 ▪ N N p. .r .I n 10.r -.. 1u I • fv m V 0m 4. L.1 •-• YJE206 aC NF»2 %> 4 F1w • *- C1/41 I.l 41 .1 a> Ise 12 4 3 • 3r EMPLOYEE BENEFITS DATA AND RECOMMENDATIONS The following pages analyze the employee benefit portion of the City of Fayetteville's compensation package. The data for the two surveyed groups (other cities and local employers) is listed and summarized. Recommendations are then presented including the projected costs and savings to the City where appropriate. { 13 • e SUMMARY OF EMPLOYEE .BENEFITS CITY SURVEY This is a summary of the data presented on the next three pages. Health Insurance Other cities generally contribute more money and make a higher percentage contribution to health insurance coverage than does Fayetteville. The following is a summary of premium costs and contributions: Employer Employee pays Days Employee Coverage Dependent Coverage Employees & Dependents Cities Fay Cities Fay Cities Fay $62.27 $40.U0 $44.39 $26.97 $106.66 $66.97 3.77 -0- 60.93 59.10 64.70 59.10 $66.04 $40.00 $105.32 $86.07 $171.36 $126.07 Fayetteville pays: 100% of employee coverage 53% of employee and dependent coverage Other cities pay: 94% of employee coverage 62% of employee and dependent coverage Dental Insurance 7 of 18 cities have the benefit. Life Insurance Average face value of policies for different groups is as follows: Non-uniform employees - $13,000 face value Police & fire employees - $15,000 face value Management employees - $25,000 face value The average premium paid by the employer is 360/$1,000/mo. 14 • c Pensions r: This category of data is difficult to compare without get- t ing into actuarial studies which are beyond the scope of this study. Generally, it can be concluded that almost all of the municipal employers contribute to a pension plan in addition to t he Social Security system. Contributions to Police and Fire pension funds vary greatly. The percentage figures reported in the survey were found to be greatly understated. Holidays The average number of holidays for non-uniform personnel was 78 hours or .9.8 days. For police employees, practices varied greatly both within Arkansas and outside of the State. In Arkansas, 5 of 9 cities surveyed included holiday compensation in the base salary for the position. The other four cities compensate employees with an average of 43 hours of extra pay per year. Outside of Arkansas, 5 of 9 cities surveyed give time off for holidays. The other four give extra pay or time off for holiday compensa- t ion. The average time off and extra pay is 76 hours. In total 13 of the 18 cities surveyed have time off or extra pay for holidays. For fire employees, in Arkansas, 5 of 9 cities included holiday compensation in the base salary for the position. The o ther four cities compensate employees with an average of 53 hours of extra pay per year. Outside of Arkansas, 6 of 9 15 T ti cities give time off for holidays. The other three cities give extra pay or time off. The average time off or extra pay is 78 hours outside of Arkansas. In total 13 of the 18 cities sur- veyed have time off or extra pay for holidays. Vacation The average vacation schedule for non-uniform personnel is as follows: 2 weeks after 1 year; 3 weeks after 6 years; 4 weeks after 13 years; 7 of the 18 cities„have 4+ weeks. For police employees, the average vacation schedule is as follows: 3 weeks after 1 year; 4 weeks after 12 years (10 of 18 cities grant the 4 weeks). For fire employees, the average vacation schedule is as follows: 3 weeks after 1 year; 4 weeks after 12 years (10 of 18 cities grant 4 weeks). S ick Leave For non-uniform personnel, the average sick leave program is 1 day per month earned, with a maximum accumulation of 90 days. There is no payout for unused sick leave either annually o r at termination of employment. For police and fire personnel, the average sick leave pro- grams is 1-1/4 days per month earned with a 60 day maximum accumulation. There is a payout for unused sick leave per State law in Arkansas. Outside of Arkansas, cities do not pay for u nused sick leave. 16 • u Uniform Allowance The average annual cost of uniforms for police and fire personnel is $250. The majority of cities provide uniforms on a quartermaster or requisition system rather than paying money to the employees. For public works personnel, most cities provide a uniform service as does Fayetteville. Longevity 14 of the 18 cities surveyed have this benefit. The aver- age maximum benefit is $100 to $130 per month depending on the relative base pay of the classification. Shift Differential Only 3 of the 18 cities surveyed have this benefit. Educational Incentive Pay 11 of 16 cities have this benefit for police and fire per- sonnel. The average maximum is $75/hr. for a Bachelor's degree in police or fire science or closely related areas. The pro- gram is usually an incremental one beginning with $25/hr. for an Associate Arts degree and $50/hr. for a Bachelor's degiee. Only four cities have this benefit for non-uniform personnel. Other Premium Pay One city has various types of skill pay up to 12.5% of sal- ary for Police and Fire. Two cities have meal allowance, for 17 j firefighters. The average is $S/mo. for those who have the benefit. One city reported up to a $100/yr. bonus for physical fitness maintenance for Police and Fire. Two cities reported extra compensation for firefighters serving as paramedics. One city reported extra pay for shooting proficiency. Steps in Pav Grades 15 of 18 cities reported Step Plans with approximately 5 to 6 years to the top step. One city is on a minimum -midpoint - M1 maximum salary .range (HAY) system. Two cities have one rate and add longevity steps to it. 18 1 EMPLOYEE.. BENEFIT; 'COMPARATIVE N O cc F • LIFE MIDRANGE MEDICAL & DENTAL INSIRANCF F ELI 0 E 0 LEO 0 e CC CC LEL V N <. FACE. VNJIE L w G 6 C r \ H U 1 C0 ¢ S C Vf < L: 2 -a o. m p G 0 WI O d` N KK • r"+ ¢ N C¢ r•1 C• N N M C M N N1�e O t• Z� O V 2 2+ 0 • )0 01"1N 2 N ^ 2 • N • rr C N N C N r+1 OD )D 0 • )D • pa N_ C N •N r•n N•-• Vit N N M r• N• N N N C P )D C N .'S r"1 L N 0 N 0 2N •- Z N. r =• wit '0Wa 101 • O m N Z ¢ Mt WI 10.Xt N - O M N Z 4le- O V; N () N C • V) 0 ¢ • Vl V) N C V) Vl VI V) CO V) • C' W Z 0) • Cl C) • 0 0 N 0 01 CO 0 0 0 Y Y Y Y 2 Y Y 2 Y Y Y Z Y •Y N. Y Y N • _ • N O 0 0 0 N C N 0 C 0 to 0 C N 0 V) N co • 0 C EL ' C` 0) 0) • C' 0) • 0 0 IV 0 0 0 0 0) 0 Y Y Y Y Y Z Y Y = Y Y Y 2 Y Y Y >' >4 N4 8C 8 8C 8 0 1 C • p0 O- S M a9 0 N N N 0 M 1 O O H 1 P- m \ \- '0 •- \ \ . I - w o )_D x �u'• (r• 4 E N• p LL La. a. al O O o 0 0 0 0 0 0 -1 0 CC m C 0 0 0 N o o et! O Co_oc• oo• on• o10V. IdJ 0000L 006 0II x(V C*A.-w w0-4, X Irt x -(i o o> 00 N W C l9 H N' .- - Yi IR M NN t9 - 419 -Y• 2 CL C L C 0 1 I 1 1 1 1 = 1 1 1 N 1 1 0 0 0 1 N 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 I 1 • 1 1 1 O 1'1. 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Y Y Y •-L a . •CL Y .C Y C 3 3 3 O 3 C 3 .CV �+ Y O C VLI N Iit rr N n M M b^I M UJO> > M nr M •0 V r I L L L L L a I r L Y Y Y Y C N`. I r r r r r .C i r O W L L L L L 0 ID V L C a a a a a a a s 00)- a WI ^- E a E u u u u E E u E E •. -. +. E E E .C Ir I� 4. Ir .O IC Y- C — T L L W C I'J N J N N in C N in Y O Y C in N in 01 V. N C CCC a. S N N N N N K. I I I N - S Y Y • Cain N Y_ 3 3 3 3 3 C 33 3 M M M M M > M O M M N in N N L N L N L N L 5 - Li; L q L C I I 1 1 I 1 .O C 1 A 1 1 C 1 A lu a CI I 1 1 I I I a a I a 1 1 a Y 1 I a Y I Y T I I I I I I Y Y I Y 1 ' ; n cc I I I O G I < 1 CN N N N N NI N N N N N N N N N N N N N N L pCi L L L L L L L L L L L L L W. IC C C IC I I C C C C C IC IC C 000 C C W a a a C I I a G a a Y U Y 6• Y a Y Y Y T $� Y Y Y Y Y Y Y N C If' I in I N C O in M it, — N O s S.- '-4 I- 0) V W Q N M N N. N N N N N N N N N N in N in N N � N N L L L L L L L L L L L L L L L L L L C 2 IC C C C C ID 10 C C WI C N IC C ft 1 ft C 010 a a a WOIW a WI a s a 00 I a s a s 0) Y Y Y Y Y Y T Y Y Y Y Y Y Y Y T Y T ; O in W O O M in O N O IO N O M N ^ M LL' in "F L L W. C /J 4 a a i Y Y N N Y M Wi I^- L r L LL N V e N W Y- W U `.- '4- S.- 00 O a C. E E E t- - L 0: L C Y N L C Y L a Y L a T L a Y L 00 Y L Y N L a Y L a Y L a Y L a Y L 0000 Y L Y N L T L Y - .-. N r r r .--I .--I J, - - r - ^•. N r C aE O N C a N C �• C a N C y] -C .r s in Ca. p C ..- T T IC L u N V k •.• L >, 10 n It L •u 0>, N 10 0 C .- IC C. C L u MI F U C > T+ C n A L u a N 10 m A C n aC L V a N N aJ C r o 4.) IC U C > a N 'V m C 'r V. '- C E U U U X W in X W • U X W T W W U C O V U C f C C r r 'V C C as C N Ip p] C N 10 0 C .0 N a p] C .C T N n T T T 6 IO S. A C C. It r N It R1 C . Y. C C E O T U m . N 6 CO L N + a N m C 6 N L a 10 m C> r O IC U m a 00'4- m C r W O a E U CU C - U C sLC X W % W X W U' Y 1-' U• C x W = V• C 'C W U C ,i 4J 'V 9 U - ~ r r C L A a a N T m C U C 5- 0) N C m C U C O Q n m m - 0 N r Cl r 0 O P. 0 W P OI r C r •. r - .-. .--I r r Z •--I .--I N k ¼- 0I O IO x C~ UJUJ W S W Y L J J O N J LL W C 6 J O Z LL J W CC 6' ^'I .J-.= H Z IJ-. O 6' Q W = 6 H Z¢2 ZQ W> N C a Z O W U L m C G �. or in t0 3 Y H 'O� W 2 V1 cn 0.00 ^ O Q (L Z J 6' G W JC 2 Y E W W ^' C Li.) H Y - Y W J a H X U Z n 2 H Z in C Z tJ' a -J. a O a - r C = 0• O n H W W C C C O CC CCC .'J i S Z n a in in f- LL m m W Z 7 •-C J J 20 £15: Pe A W d a a z d d IO CO IA O o d a d O r. ^ 0000 C C O II n Q W IA O 0 d d ^ r) • T Inc IO N O F 3� N (7 N t N Z Z .+ N Z ).Z Z N N N .� Z Z .a 4 W O N N C Q ¢ J -ii d C. C a a C 2i d d ^ WI O a d a d O N C A C C 0 0 0 0 C C l CI U. O C M1 N L) O d d— O•> N O 00 N N Z Z — N Z .0 Z Z N r, N— Z Z 0, J p N N C La- 0 N N O I C C .~... I d d d d C d d d L j - L Y Y Y O Y Y La, W � L L LL L E N L • L L L 0 O N CC K a0 CO Y C b SO o �O 1 I d d d d O CE d d d d w; C O, T u u •u u V �. nY N t- O O ^ ^ ^ O O of tir Oi O ^ ^ ^ O a Z Z O O O Z Z C rf O O O O Y 1 G } c l O 6 G - v C .v v� r `-' 2 LU 6 = c p lyI d d C Y¢ N N N N N N N N d j L d } d 0 } d } d } N d Y d } d } Q W di c ¢ I d ul wl W 0 00 0000 +` W owe I I o O II+ w 0 I x, ZO rv1 N It P 1D rIO E Z O. Z - I I ID la Ni Z — J �j .-. — •,. O O N 1 I . Z Z ^ Z Z C) C I- W d - d d v y Y Y S. L ^ L L L H b no d d d u u u a N + ^ ^ •r ^ W W W fl Cu QZ0 N N Ifl O N O N N Z - 20 Z0 ^ - ^ - 0 . — Z Z Z Y L S- o p O O 14- o O O N v Cu v N v X t W J r-. W J i C Z Y O m = r N H C 0 V, L n.. C- H O W J J J O (fl Y U ' p m tfl W Z O 9 J 6 W W C 3 J Y 1' J F I- n-. J Z Q f g S Z QQ Err W W O Y N 7 Z Q S C O^ L LL O J 6] W Z o. N( W— W CO O C W J ¢ 0¢ C— 0. N 6' W H 3 J '- N ¢ Q Z Q Y 6 'C W H ~ C Z C> ]C Q x W f U• C L' W? G J J ^ W H W Q L [1 a 9 d d Cl U c c y A 10 > L € O N O _ 6 Y L A O L > - U d O Y O. T G L 6 L c 6 C O O d O d O C 04J u u Y E C 4,r - C N N C C .� ad I O u A O C G a d o N N Y A O .2 Y Y O d d a = Z Y L C fl Y u d d CC T N C N F N O N N N U l 0 O L N L n T u I T T N O O N Z S. 1 1 N N Y A C C N C L N Q N d !1 0.f•1 '4.0 N 1 1 C d N N u n 1 D d 1 0 d T 6 d d d Y 0.0. VI C d N d Y N N Y N N N C) Y Y Y N d d ' •� a 6 Y N 0.0. N G C Y A q N Y Y 01 N C) N d d d •0 d N L L 10 N N - Y N Y Y ."r Y A Y O N N r"• N 2 N - - - N 0C' N N d d Y d d u u O d C L¢ L- C L c 00 U4.1 >1 C n •LL. Ex p N N\ O 00 O U \ O -aC m- O- Ode E -t O z=I O O 7 J O 0 0 f40) J W A 0 0 41V O \Vi d O U 0 0 2 Z Z Z Z Z Z O V O 1 Z Z 1 Z O E Z N Z ,rrl�, or WV Xr-L LA LA I L %LT 1'I A O A •- d r d N C A A •� L c EO. > W E LL E ..0- ELL n 0 E L \ 0t C X L NI n r- i. m G - WI d W EC) m - N 1. m E'- ≥ O 0' 1 L L \ O E d X X w w O x3 u- N x C O+ E X E E O U. Z .t ✓, ry d 00 \ A f'1 O O I E u Y 00 E O O sit—; m d E d u U CC) M A EC E E L w, I L \ L L I U — 0— \ d Y( O Y . U O O O .' >,r O O I E N O — DC > X J, J L. La.. C) Z Z .-LLLa z 0Ln \r- z 2 Z O O E JI ...21Z1 z,Z ^ C4- H C 'H it CIA .- b 04.' Ifl O M W L O £ -I z Cit. Y L - 1 r 1 I .C WH� OdNW dLA NO dd t4U U u4 £ C C, E US.. O U G U U u tad, r. LQ^r• d^ d U O -I O. O O A O A O O 00 .-C C O -- Hlwr dI 6dW N1 14 LL6 ..- d W./. Cl C. JCl I Y Y N F f E -- I WI N N C EE e O N n D O co C, C 0n0 O O O O- 00 LL1 ^ O Z Z Z Z Z Z I Z Z •Z Z z Z Z a Oi s_S.. C) 1.5. C.C UY LL - \\ r w \\ 00 -1 On of ZI -- O. N Nn N i I E >,1. L N C' N T X L '-0 m w T L - T >E Esl \ X N I d O A u d F., LO O A 1 d d Y 11 C !f L E N T d U r d . �• L C, rU — ..> d' L m LL > 0)5. u d li A Y o,. Y U d > Y •7 M .O E W EO S.. i N >5.. 4- A 4 N > 5-C) A \ N d N X >, Y N 5-¼- WV 3 T T L L w C C X w d O N L. 1- >+ E .•. O N A N n O N Ir 0 C) N 01.2 b L s..,, L L C, O N L 0 0 L Cl 6'> n > � T .w N E L 0 O T N E d C L > A O Y O 1 L\ Y N L\ .C A d .5_ @, d In.., w NO N TO N X L TO Y L Y L d A % L > O O I. TN Y O L N T� "^ T X rXq T Y' X A 0 1. ~E a R O E X M T A w A Eo in 0 E XI 0 L G L cc Eo- \O d O EL- d >1 L!f ad ILO O E L j0 C S.. \ O CE O U E\ O > L \ W N W 1 E\ d n W W W O v Q% N \ a T Z O\ 04' • Z Z O% Z O N q X Z Q x T 01- N .+ C N O O '•1 A W N N O N Ln N O N A pP 00 •+ A J W 4444- 4-C Z Z M E Q M E Z MM 440. N 4 E Q .-1 Z M E X E W 3 W C Q J O N _J - O: H 2 - O O Z LL J W Q Q r r j 6' W d Q W a J CC CC W Z N 6 O m 2 Z W H U' Z m t'J i a J W N N N- W J CO C 1' Z J H Y H Y W J S' F'• S Y L W y - J CC O Y - U Z a 3 H N 6' Z L: O' - n G C O O C O Q Q _ G J S E a 6 VI in -t H I i; f .4 SUMMARY OF EMPLOYEE BENEFITS LOCAL EMPLOYER SURVEY This is a summary of the data presented on the next two pages. Health Insurance Local employers generally contribute more money and make a higher percentage contribution for health insurance coverage than does the City of Fayetteville. The following is a summary of premium costs and contributions. Employee Dependent Employees & Coverage Coverage Dependents Local Fay Local Fay Local Fay Employer pays $40.00 $40.00 $60.00 $26.97 $100.00 $66.97- : Employee pays 5.00 -0- 30.00 59.10 35.00 59.10 $45.00 $40.00 $ 90.00 $86.07 $135.00 $126.07 Fayetteville pays: 100% of employee coverage 53% of employee and dependent coverage Local employers pay: 87.5% of employee coverage 74% of employee and dependent coverage Dental Insurance 12 of 25 have the benefit. 8 of the 12 with the benefit contribute toward the premium for dependent coverage. Life Insurance The average face value of coverage is $21,000. The average premium paid is 350/$1,000/mo. 23 A I. Pensions As in the public sector, data for this particular employee benefit is difficult to cost -out and compare. However, the data collected shows that 21 of the 25 employers responding contribute to a pension plan in addition to the Social Security system. The average contribution above social security is 3.5%. Holidays The average number of holidays is 70 hours or 6.6 days. Vacation .The average vacation schedule is as follows: 2 weeks after 1 year; 3 weeks after 10 years; 11 of 25 employers have 4 weeks; 5 of 25 employers have 5 weeks. Sick Leave 22 of 25 employers grant paid time off for sick leave. The average maximum granted is 9 days with a maximum accumulation of 30 days. 2 of 25 employers pay for unused sick leave. niform Allowance 6 of 25 employers reported contributing to this benefit. Longevity No employers reported this benefit. 24 a q Shift Differential 11 of 25 employers reported this benefit primarily for manufacturing positions. The approximate differential is 250/hr. for the second shift and 350/hr. for the third shift. Other Premium Pay 6 of 25 employers reportedsome type of bonus/incentive system on top of base salary. f = 25 � O O O O C O O O C O ♦ O. C I i C O O O O O O O O n 'O Ealml d. .-1 .••1 ^ .r ^1 Gul Ol H• ^Ic. zIz H O,Of N N N N N N N Ill N N N Cl UI GI6' N N I Y. N N W W W W W W W• W Lu Lu W Lu W • W W C 1 W OfrVl O W W Lu W W W W W } a Y T } a Y Y Z 1 > UI^IZ Z Y T > y Y y Y } T Y } T Y Z O0 -I OG' VI WI C N Vf N N N VI N N N C N VI N N N N N I V. Vf VI N N N N } Y Z > Y Y Y Y Y T 1 } Y Y } } y > Y } } y > } T V IKU, N rl 2 H TiCI O O O O $ a O C t` K • O O N0 O O O O C = w C C N C O K C ^ — ^ \ I La N iP I Wa • 2 IC, O C • — N W O W t I Vl M O 1 O C r 1 C WI£- a a Z v ^ ^ Z Z . 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Y ,_I L' C 1' C Y Y I C ylY I C Y G 1' I 6' 1' Y} Y Y > I I Y Y Y In 0 0 0 I r0 O O' I I O I I 1() O •"1 — OI N 1 '-r m in ^ rw — I Ill r W rl it, m N in N N Y Y N n N in VI Q O 6' Y 4 C 2 C O 6 2 Y> Y Y Y Y}}} Y Y Y } I Y Y Y Y} Y Y Y N } C,, mY — — A rl m 11 ""1 !f rl m m — m — — — A ¢ ni J ti �+ .-1 N �+ — .-I 1••r -n l N N Q El T O P NO n -w -. OI m n O lT in LO O b 00 LD m J r - .y r1 .1 — ry — 2 C Cl V G W LL L: 2 "J y .J Y 2 O O -Ox in H>> 3 X Y 27 I A EMPLOYEE BENEFIT RECOMMENDATIONS Health Insurance Based on present premium costs, the City should increase its contribution to dependent coverage Dy $6/month. The cost of health insurance has continued to rise three or four times the increase in the Consumer Price Index on an annual basis. While such increases are being experienced by both the City and the employee, the increases in such pPremium costs should be reviewed annually and be made part of the total employee cost and compensation review and adjustment process. We would recommend that the City use a general guideline of 60% of the dependent premium cost being paid by the City. The estimated cost of this increase would be as follows for the estimated 250 employees having dependent coverage: $6/month x 12 months x 250 employees = $18,000 Dental Insurance The addition of this benefit is not recommended. Life Insurance The City should institute a two -tiered program with the following coverages with the premiums paid by the City: Exempt management employees: $25,000 face value All other employees: $15,000 face value 28 The estimated cost of this increased benefit for approximately 50 exempt and 250 other employees is as follows: Exempt employees: $15,000 x 36t�/$1,000 x 12 months x 50 employees = $5,400 Other employees: $15,000 x 36¢/$1,000 x 12 months x 250 employees = $16,200 Total estimated cost: $21,600 No changes in this benefit are recommended. Holidays Additional pay or time off for police and fire personnel should be instituted beginning in 1985. This extra pay or time off should be in addition to the holidays already included in the base salary for these positions. Police •personnel should receive_64 hours of extra pay or time off and fire personnel 72 hours, except the Chiefs and Assistant Chiefs in both depart- ments. The estimated cost of the benefit is calculated as fol- lows: Police: avg. $8/hr x 32 hrs. in pay x 47 employees = $12,032 Fire: avg. $5/hr. x 36 hrs. in pay x 52 employees = $9,360 Vacations No change in this benefit is recommended. Sick Leave No change in this benefit is recommended. A4 C 1h. I LL � Uniform Allowance The City should adopt a quartermaster or requisition type system for providing uniforms for police and fire personnel. This should be done in place of the present payments of $425 to police and $400 to fire personnel. The City should be able to provide this benefit at a cost of approximately $250/employee after the initial outfitting of new employees. Estimated cost savings are as follows: Fire: 52 employees x $150/year = $7,800 Police: 47 employees x $175/year = '$8,225 Total estimated savings is $16,025 Civilian uniform practices should remain the same. r Longevity The City should institute a longevity pay program for all employees which compensates employees with a lump sum payment on their anniversary date of hiring as they complete the fol- lowing intervals of service: 10 to 14 years of service - $200 15 to 19 years of service - $400 20 and more years of service - $600 Based on present employee tenure figures the estimated annual cost of this program would be as follows: ($200 x 53 employees) + ($400 x 14 employees) + $b00 x 10 employees) = $32,600 30 C Educational IncentivetPay The City should institute an educational incentive pay pro- gram for police and fire personnel with the following increments being established and paid as a lump sum during the last month of the fiscal year. Persons achieving the degree sometime dur- ing the fiscal year should receive a pro -rated amount at the end of the year in which they receive the degree. Once an employee obtains the appropriate degree, the benefit would be paid annually. The following increments are recommended: fr Associate Arts Degree in general - $2U0/'yr. Associate Arts Degree in police or fire related area - $300/yr. Bachelor's Degree in general - $500/yr. Bachelor's Degree in police or fire related area - $600/yr.' r Since we have no records on police and fire personnel pres- ently holding degrees, we cannot estimate the cost. However, once a program is set up, typically 30-40% of employees receive such, a benefit. Based on present personnel, including Chiefs and Assistants, the cost would be 99 employees x 35% x $300/yr (average benefit) = $10,395 Bonus Pay A bonus pay system should be established by the City. Such a plan should be established during 1985 and be in effect by the 1986 fiscal year. This system should have a maximum bonus of 7-1/2% of base salary. it should be paid annually in a lump sum, in the last month of the fiscal year. Eligibility for the 31 F a .. S It . bonus is limited to those employees who have reached and com- pleted one year in the "G" step of the Pay Grade to which their classification is assigned. Also, the bonus pay shall be granted only to those employees whose performance ranges from above average to outstanding, since the "G" step in the Pay Grade is reflective of satisfactory and standard performance in the labor market. Bonus pay should be limited to 50% of the employees eligible in any one year. The average bonus pay should be 3.75% of base salary. Estimating the cost of this benefit is somewhat difficult until the basic pay plan system is implemented and employees begin to reach the "G" step in their respective Pay Grade. Once the basic pay plan is implemented, on the average of one - Cthird of the City employees would be eligible for bonus pay in any particular year. Of these approximately 100 employees who have spent at least one year in the "G" step of their classifi- cation, 50 employees would be eligible for the bonus pay. The average bonus for this group would be 3.75%. On an annual basis, using 1984 an annual payroll figure of $5,750,000, the cost to the City would be: $5,750,000 x 0.166 (50 employees) x 0.0375 (bonus pay) _ $35,936 32 J l^ EMPLOYEE BENEFITS RECOMMENDATIONS COST SUMMARY - BASED ON 1984 DOLLARS Health Insurance $18,000 Life Insurance 21,600 Holidays 21,392 Uniform Allowance (16,025) Longevity Pay 32,600 Educational Incentive Pay 10,395 Bonus Pay (1986) 35,936 $123,898 33 IT? OF FAYETTEVILLE TOTAL COST ANALYSIS AND RECOMMENDATIONS r The previous salary and benefit survey data has been com- bined to analyze four classifications in detail with a resulting recommended total cost package for each group of employees. Most cities have three or four basic compensation packages: Police Department, Fire Department, General Public Works, General Office and Administrative. In many cities, as in Fayetteville, the compensation package for General Public Works and General Office and Adminstrative personnel is identical. As data on the following pages indicates, simply looking at base salary of various classifications is no longer sufficient to see if an employer is compensating its employees at a reasonable market level. Employee benefits - or fringe benefits as they are r frequently and inaccurately termed - have grown in importance and value to both the employer and employee over the last twenty years. As the following pages indicate, there is nothing "fringe" about costs which exceed 50% of what is paid to an employee while on the job. In order to fairly compare employee compensation, it is therefore important tha in making judgments and tion. This total cost, used in this study; and this approach in future benefit cost increases. t both salary and benefits be considered recommendations about employee compensa- compensation package approach is the one it is recommended that the City continue years as it is confronted with salary and C tZ 34 S11 fl i X The calculations are' done at the maximum level of salaries and benefits because this allows the total package to be compared from employer to employer. Even though all employees do not reach the maximum levels, these maximum levels define the City's commitment to its employees. In order to better understand the following calculations, a set of definitions precedes the analysis of the four classifica- tions. Other classifications can also be costed-out in the same manner. Basically, what is revealed by this analysis of addi- tional classifications is that the compensation package is the same for other employees in that group and that, consequently, once the salary and benefit market levels are determined for the analyzed classification, the same conditions apply to the higher classifications. What the following analysis does show as a general rule is the following: 1. The present maximum base salaries of the City of Fayette- ville are higher than both other cities and local employees. 2. The employee benefit package of the City is considerably lower than other cities, and generally lower than local employers. The resulting recommendations as indicated on the following analysis sheets, on the previous summary of employee benefit recommendations, and as embodied in the pay plan presented later in this report, adjusts the City of Fayetteville's compensation package to meet these two differences. 35 DEFINITIONS A. BASE SALARY - Annual salary as determined by approved budget or pay plan. B. HOURLY RATE - Hourly rate is determined by dividing the Base Salary (A) by the following: hours worked per day X days worked per week X 52 weeks. C. HOURS WORKED - Actual hours worked during a one-year period including overtime but excluding hours not worked due to vacation, sick leave, holidays, et cetera. D. HOURS PAID - Actual hours an employee is paid for whether he works the hours or not. This includes overtime hours of any type, additional hours of pay in lieu of holiday time off and hours of pay for unused sick leave if paid out on an annual basis. E. HEALTH INSURANCE - Employer's annual premium cost per employee plus employer's premiums for Dental Insurance if applicable. F. LIFE INSURANCE - Employer's annual premium cost per employee. C. VACATION - Dollar value of hours taken off. H. HOLIDAYS - Dollar value of days taken off or additional income r earned on holidays. I. SICK LEAVE - Dollar value of hours taken off for sick leave purposes. Also included are days taken for emergency leave or funeral leave and pay for unused sick leave if paid out on an annual basis. J. UNIFORMS - Costs to supply or reimburse an employee for a distinctive set of clothing including shoes and personal equipment, as well as cleaning of applicable items and/or for provision of a uniform service including supplying a certain number of clean uniforms per week or month. K. PREMIUM PAY - Includes the pay for overtime beyond the straight time earned by the employee. Also includes longevity pay, educational incentive pay, bonus/merit pay and other pay. L SUB -TOTAL - Employer's annual cost for employee benefits not including pension and/or Social Security costs. M. PENSION - Employer's annual contribution to a State or local pension fund and/or Social Security to provide payments on retirement, disability, death and vested separation from service. t. N. TOTAL EI�LOYEE BENEFITS - Employer's annual cost for all employee benefits. 3f wt . ii r O. CROSS PAY TO EMPLOYEE - Total employee pay including bas@ pay, overtime, longevity, unused sick leave, holidays and various other premium payments: educational incentives, performance bonuses, et cetera. (n x D) + It P. S.T. (STRAIGHT TIME) PAY FOR HOURS WORKED - The amount an employee earns on an annual basis for every hour worked. This annual amount does not include any employee benefits in terms of vacation, Holidays, sick leave, premium pay, et cetera. (B X C) . Q. TOTAL COST TO CITY EXCLUDING PENSION - Employer's total cost paid out per employee, but not including employer pension contributions. This figure includes payments to the employee as well as all employee benefits. P + L R, 7. OF BENEFITS WITHOUT PENSION - Employee benefits as a per cent of straight time pay for hours worked. This comparison does not include the variable pension costs of the municipality. L - P S. TOTAL COST TO CITY INCLUDING PENSION - Employers total cost paid out per employee. p+ + N T. 7. OF BENEFITS WITH PENSION - Employee benefits as a per cent of straight time pay for hours worked. N - p 4, 37 p MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I A. Base Salary B. Hourly Rate C. Hours Worked D. Hours Paid Employee Benefits E. Health Insurance F. Life Insurance G. Vacation H. Holidays I. Sick Leave J. Uniforms K. Premium Pay L. Subtotal M. Pension N. Total Benefits 0. Gross Pay to Employee P. S.T. Pay For Hours Worked Q. Total Cost (-) Pension R. % Benefits S. Total Cost (+) Pension T. % Benefits PRESENT FAYETTEVILLE $15,024 7.22 1,917 2,161 $ 804 4 1,040 462 260 0 292 2862 2,066 4 ,92d $15,894 13,841 16,703 20.7% 18,769 35.6% OTHER CITIES AVERAGE MAXIMUM $12,998 6.25 1,887 2,161 $ 1,280 56 1,000 488 225 0 1,453 4,502 1,675 b,1(7 $14,959 11,794 16,296 38.2% 17,971 52.4% LOCAL EMPLOYERS $14,179 6.82 1,936 2,161 $ 1,200 88 818 471 246 0 426 3,29 1,592 $15,164 13,204 16,453 24.6% 18,045 36.7% RECOMMENDED PACKAGE $13,190 6.34 1,917 2;161 $ 876 65 913 405 228 0 1,846 A 2,021 X57 $15,517 12,153 16,487 35.7% 18,508 52.3% C • L MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. Maximum salary in pay plan B. $15,024 2080 hours ' C. 2080 hours + 81 OT hours - (144 vacations hrs +64 hours holiday + 36 sick leave hours) D. 2080 hours + 81 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 144 hours X hourly rate H. 64 hours X hourly rate I. 36 hours sick leave taken X.hourly rate J. -0- K. 81 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 13% (Social Security + City Pension Plan) X gross pay (line 0) ;.• 6 39 C MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Other Cities Average Maximum A. Average maximum base salary B. $12,998 2080 hours C. 2080 hours + 81 OT hours - (160 vacation hrs + 36 sick leave hours +78 hairs holiday time off) D. 2080 hours + 81 OT hours E. $106.66 X 12 months F. $13,000 face value X .36/$1,000 X 12 months G. 160 hours X hourly rate t` H. 78 hours X hourly rate I. 36 hours average sick leave taken X hourly rate J. -0- K. $1,200 longevity + (81 hours X hourly rate X .5) L. Lines E -K added together M. 11.2% X gross pay (line 0) C 40 MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Local Employees A. Average maximum base salary B. $14,179 ; 2080 hours C. 2080 hours + 81 hours OT - (120 hours vacation + 36 hours sick leave + 69 hours holidays) D. 2080 hours + 81 hours OT E. $100 X 12 months F. $21,000 face value X .35/$1,000 X 12 months G. 120 hours X hourly rate H. 69 hours X hourly rate I. 36 hours sick leave taken X hourly rate J. -0- K. $150 estimated average incentive/bonus pay + (81 hours OT X hourly rate X .5) L. Lines E -K added together M. 10.5% X gross pay (line 0) 41 Ii l r MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Recommended Package A. New maximum base salary in pay plan achieved after 6 years B. $13,850 4 2080 hours C. 2080 + Si O.T. hours - (144 vacation hours + 36 sick leave hours + 64 holiday hours) D. 2080 + 81 O.T. hours E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 144 hours X hourly rate r H. 64 hours X hourly rate ]:. 36 hours sick leave taken X hourly rate J. -0- K. $989 incentive pay + $600 longevity + (81 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 13% X gross pay (line 0) e 42 F f p r MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION PRESENT OTHER CITIES LOCAL RECCHMENDED FAYETTEVILLE AVERAGE MAXIMUM EMPLOYERS PACKAGE A. Base Salary $14,684 $13,471 $13,676 $13,190 B. Hourly Rate 7.06 6.48 6.58 6.34 C. Hours Worked 1,864 1,837 1,883 1,864 D. II Hours Paid 2,126 2,126 2,126 2,126 Employee Benefits E. Health Insurance $ 804 $ 1,280 $ 1,200 $ 876 F. Life Insurance 4 56 88 65 G. Vacation 1,017 1,036 790 913 H. Holidays 452 505 454 406 I. Sick Leave 381 350 355 342 J. Uniforms 148 148 46 148 K. Premium Pay 162 1,349 301 1,735 �.. Subtotal Z'�i9 8 ,1,772244 3,234 > I. Pension 1,972 1,694 1,500 1,978 N. Total Benefits A 946 5,4i$ A5.003 0. Gross Pay to Employee $15,172 $15,125 $14,290 $15,214 P. S.T. Pay For Hours Worked 13,160 11,904 12,390 11,818 Q. Total Cost—(-) Pension 16,128 16,628 15,624 16,443 R. % Benefits 22.6% 39.7% 26.1% 39.0% S. Total Cost (+) Pension 18,100 18,322 17,124 18,421 T. % Benefits 37.5% 53.9% 38.2% 54.4% 43 MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. This classification combined three classifications with the follow- ing maximum base salaries: General Maintenance ($14,124), Groundskeeper ($14.,448), and Distribution Person ($15,480). For purposes of comparison, we have averaged these maximum base salaries for this classification. H B. $14,684 ; 2080 hours C. 2080 hours + 45 OT hours - (144 vacations hrs + 64 hours holiday + 54 sick leave hours) D. 2080 hours + 46 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 144 hours X hourly rate H. 64 hours X hourly rate I. 54 hours sick leave taken X hourly rate J. $148 provided by City K. 46 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 13% (Social Security + City Pension Plan) X gross pay (line 0) t. C . MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Other Cities Average Maximum A. Average maximum base salary B. $13,471 ; 2080 hours C. 2080 hours + 46 OT hours - (160 vacation hrs + 54 sick leave hours + 78 hours holiday time off) D. 2080 hours + 45 OT hours E. $106.66 X 12 months F. $13,000 face value X .36/$1,000 X 12 months G. 160 hours X hourly rate to H. 78 hours X hourly rate I. 54 hours average sick leave taken X hourly rate J. $1148.. most cities use a uniform service such as Fayetteville; Fayetteville's figure is used. K. $1,200 longevity + (46 hours X hourly rate X .5) L. Lines E -K added together M. 11.2% X gross pay (line 0) (This is an estimated figure) 45 II ~ l r MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Local Employees A. Average maximum base salary B. $13,678 : 2080 hours C. 2080 hours + 46 hours OT - (120 hours vacation + 54 hours sick leave + 69 hours holidays) r D. 2080 hours + 46 hours OT E. $100 X 12 months F. $21,000 face value X .35/$1,000 X 12 months G. - 120 hours X hourly rate H. 69 hours X hourly rate I. 54 hours sick leave taken X hourly rate J. $46 average contribution K. $150 estimated average incentive/bonus pay + (46 hours OT X hourly rate X .5) L. Lines E -K added together M. 10.5% X gross pay (line 0) I 46 i MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Recommended Package A. New maximum in pay plan achieved after 6 years B. $13,850 ; 2080 hours { C. 2080 + 46 O.T. hours - (144 -vacation hours + 54 sick leave hours + 64 holiday hours) D. 2080 + 46 0.T. hours E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 144 hours X hourly rate H. 64 hours X hourly rate I. 54 hairs sick leave taken X hourly rate J. $148 provided by City K. $989 incentive pay + $600 longevity + (46 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 13% X gross pay (line 0) 47 MAXIMUM SALARY AND BENEFITS COMPARISON POLICE PATROL OFFICER CLASSIFICATION PRESENT OTHER CITIES RECO MENDED FAYETTEVILLE AVERAGE MAXIMUM PACKAGE A. Base Salary $19,068 $17,677 $17,676 B. Hourly Rate 9.17 8.50 8.50 C. Hours Worked 1,989 1,919 1,957 D. Hours Paid 2,149 2,180 2,181 Employee Benefits E. Health Insurance $ 804 $ 1,280 $ 876 F. Life Insurance 4 65 65 G. Vacation 1,100 1,360 1,020 H. Holidays 0 519 544 I. Sick Leave 367 340 340 J. Uniforms 425 250 250 K. Premium Pay 316 2,753 2,821 L. Subtotal 3,015 x,0'07 M. Pension 6,007 5,321 6,407 N. Total Benefits $ 9,073 $133 $12,323 0. Gross Pay to Employee $20,022 $21,283 $21,359 P. S.T. Pay For Hours Worked 18,239 16,312 16,634 Q. Total Cost (-) Pension 21,255 22,879 22,550 R. % Benefits 16.5% 40.3% 35.6% S. Total Cost (+) Pension 27,262 28,200 28,957 T. % Benefits 49.5% 72.9% 74.1% /_ MAXIMUM SALARY MID BENEFITS COMPARISON POLICE PATROL OFFICER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville It I A. Maximum salary in pay plan B. $19,068 _ 2080 hours C. 2080 hours + 69 OT hours - (120 vacations hrs + 40 sick leave hours) D. 2080 hours + 69 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 15 days X hourly rate H. Holidays included in base salary I. 40 hours average sick leave taken X hourly rate J. $425 paid to employee K. 69 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 30% X gross pay (line 0) L' I MAXIMUM SALARY AND BENEFITS COMPARISON i DETAIL OF TOTAL COST CALCULATIONS POLICE PATROL OFFICER CLASSIFICATION Other Cities Average Maximum A. Average maximum base salary B. $17,677 ; 2080 hours C. 2080 hours + 69 OT hours - (160 vacation hrs + 40 sick leave hours + 30 hours holiday time off) D. 2080 hours + 69 OT hours + 31 holiday hours of extra pay E. $106.66 X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 160 hours X hourly rate H. 61 hours extra pay or time off X hourly rate (assumed 30 hours in pay and 31 hours time off) I. 40 hours average sick leave taken X hourly rate J. $250 on quartermaster system K. $1560 longevity + $900 educational incentive pay + (69 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 25% X gross pay (line 0) (This is an estimated figure) Q 50 F.P ..♦ T. W Pt MAXIMUM SALARY AND BENEFITS COMPARISON POLICE PATROL OFFICER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS A. New maximum in pay plan achieved after 6 years B. $17,676 _ 2080 hours C. 2080 + 69 O.T. hours - (120 vacation hours + 40 sick leave hours + 32 holiday hours) D. 2080 + 69 O.T. hours + 32 holiday hours of extra pay ... E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 120 hours X Hourly Rate H. 64 hours extra pay or time off X hourly rate (assumed 32 hours in pay and 32 hours time off) I. 40 hours sick leave taken X hourly rate J. $-250 on quartermaster..system K. $1,328 incentive pay + $600 longevity + $600 educational incentive + (69 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 30% X gross pay (line 0) 51 1 . MAXIMUM SALARY AND BENEFITS COMPARISON FIREFIGHTER CLASSIFICATION PRESENT OTHER CITIES RECOMMENDED FAYETTEVILLE AVERAGE MAXIMUM PACKAGE A. Base Salary $17,964 $16,703 $16,834 B. Hourly Rate 6.17 5.74 5.78 C. Hours Worked 2,690 2,630 2,654 D. Hours Paid 2,957 2,990 2,993 Dnployee Benefits E. Health Insurance $ 804 $ 1,280 $ 876 F. Life Insurance 4 65 £5 G. Vacation 1,333 1,378 1,248 H. Holidays 0 379 416 I. Sick Leave 315 293 295 J. Uniforms 400 250 250 K. Premium Pay 139 2,684 2,593 L. Subtotal 2,995 6,329 5,773 M. Pension 5,447 4,962 5,769 N. Total Benefits $ 8,442 $11,291 $11,512 0. Gross Pay to &ployee $18,784 $19,846 $19,893 P. S.T. Pay For Hours Worked 16,597 15,113 15,340 Q. Total Cost (4 Pension 19,592 21,442 21,083 R. % Benefits 18.0% 41.9% 37.4% S. Total Cost (+) Pension 25,039 26,404 26,852 T. % Benefits 50.9% 74.7% 75.0% S. MAXIMUM SALARY AND BENEFITS COMPARISON FIREFIGHTER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. Maximum salary in pay plan B. $7,964 ; 2,912 hours C. 2,912 hours + 45 OT hours - (216 vacations hrs + 51 sick leave hours) D. 2,912 hours + 45 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G: 9 shifts X hourly rate 4 H. Holidays included in base salary I. 51 hours average sick leave taken X hourly rate J. $400 -paid to employee K. 45 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 29% X gross pay (line 0) 3 53 I MAXIMUM SALARY AND BENEFITS COMPARISON FIREFIGHTER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Other Cities Average Maximum A. Average maximum base salary B. $16,703 ; 2912 hours C. 2,912 hours + 45 OT hours - (240 vacation hrs + 51 sick leave hours + 33 hours holiday D. 2,912 hours + 45 OT hours + 33 holiday hours of extra pay E. $106.66 X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 10 shifts X hourly rate H. 66 hours Extra Pay or time off X hourly rate (assumed 33 hours in pay and 33 hours time off) 1. 51 hours average sick leave taken X hourly rate J. $250 on quartermaster system K. $1560 Longevity + $900 educational incentive pay + (45 hours O.T. X hourly rate X .5) + $95 (meal allowance and/or skill pay) L. Lines E -K added together M. 25% X gross pay (line 0) (This is an estimated figure) E MAXIMUM SALARY AND BENEFITS COMPARISON FIREFIGHTER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Recommended Package A. New maximum in pay plan achieved after 6 years B. $16,834 ; 2,912 hours C. 2,912 + .45 O.T. hours - (216 vacation hours + 51 sick leave hours + 36 holiday hours) D. 2,912 + 45 O.T. hours + 36 holiday hours of Extra Pay E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 9 shifts X hourly rate H. 72 hours extra pay or time off X hourly rate (assumed 36 hours in pay and 36 hours time off) I. 51 hours sick leave taken X hourly rate J. $250 on quartermaster system K. $1,263 incentive pay + $600 longevity + $600 educational incentive + (45 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 29% X gross pay (line 0) 55 II I, , . I CITY OF FAYETTEVILLE PAY PLAN RECOMMENDATIONS In recommending a pay plan for the City of Fayetteville, the following four factors were taken into account: . Base salaries and employee benefits in other cities . Base salaries and employee benefits of local employers Internal consistency based on the duties and responsibili- ties of particular classifications Sufficient differentials between subordinates and super- visors. No one of these four elements is ab*olute in determining the appropriate salary for different classifications. Rather, we have exercised our judgment in blending these considerations together in a system which we think fairly and equitably compen- ;. sates City of Fayetteville employees. The following pages set forth the basic pay plan and indicate employees who are above the maximum and below the mini- mum of the pay grades associated with their classifications. Regarding the pay plan itself, the system is set up with thirty-two different pay grades. Each pay grade is five percent higher at the minimum and maximum salaries than the pay grade which precedes it. Each pay grade, except the final one for the City Manager, consists of seven steps (A through G). The differ- ential between the steps is 5%. Consequently the differential between the minimum and maximum salary in any pay grade is 30%. In general, employees in any classification should begin employment at Step A. Exceptions can be made for new employees whose background and experience exceed the minimum requirements �S 56 4.. I c. i • � l of the classification. Employees are reviewed and evaluated on f r their anniversary date of employment. ,,,.If their performance has been satisfactory, they should be advanced to the next step in the pay plan. If their performance is not satisfactory, they should remain at their present step until their performance improves. A satisfactorily performing employee should reach the maximum step in their pay grade in six years. In cases of promotion within the City service, employees should be advanced to Step A of the pay grade assigned to their new classification. Since there is some overlap in pay grades assigned to classifications where promotions might occur, employ- ees being promoted should be advanced to the next step in the new pay grade which exceeds their present salary. They should then be reviewed annually and advanced to the next step if their performance is satisfactory. Employees should not be paid less than the minimum base salary- of their pay grade. Also, they should not have a base salary beyond the maximum of their pay grade except during the transition stage of this pay plan when the City may determine, and we recommend, that employees above the maximum base salary will receive their present pay until the salary range catches up with them. While their base salary is frozen, these employees are eligible for other premium pay benefits such as longevity, educational incentive and bonus pay which should be paid out as recommended elsewhere in this report. A listing of employees above the maximum and below the minimum base salary for their pay grades is on the following pages: 57 C PAY PLAN IMPLEMENTATION C The salary and benefit information collected in the survey is based on 1984 fiscal year information. The pay plan and other data presented on subsequent pages is also based on present fiscal year information. However, since a new fiscal year for the City of Fayetteville begins January 1, -1985, we would recom- mend that the pay plan and related employee benefit changes go into effect at that time. In our opinion other cities will be raising their base salaries approximately 4% in the coming fiscal year. We recom- mend that Fayetteville do the same. That would mean that the minimum, maximum and intermediate steps of the pay plan would all be adjusted upward by 4% as of January 1, 1985. All employees, except those whose base salaries would exceed the new maximum base salary of their pay grade, should receive a 4% increase effective January 1, 1985. Those below the minimum should be brought up to the minimum base salary of their pay grade. Also, as employees reach their anniversary date of employment or promotion during 1985, they should be advanced to the next step in their pay grade. For example, Mary Smith, a Secretary, is presently being paid $12,500 and began work on July 6, 1982. The Secretary classification is assigned to pay grade 7 in the pay plan. Mary Smith should receive on increase of 4% on January 1, 1985. This would make her base salary $13,000. On July 6, 1985, she should move to Step D in pay grade 7 of the 1985 pay plan matrix which has been adjusted 4%. Mary Smith's new salary as of July 6 would be $13,379. Implementation costs, based on 1984 salaries, would be estimated as follows: ` 25 employees below minimum base salary.......$18,600 Movement into steps during the fiscal year based on anniversary dates ($5,750,000 annual payroll X 2.5% average step increase X 1/2 year - the average anniversary date).... ...... . . ... .. . $71,875 $90,475 Less 62 employees aabove maximum base salary - base salaries frozen until pay grade catches up ..:...............(49,615) $40,860 • EMPLOYEE BENEFIT COSTS $123,898 TOTAL IMPLEMENTATION COSTS $164,758 59 y V a ADJUSTMENTS TO THE PLAN F C The salary ranges assigned to each pay grade should be reviewed and adjusted annually, as part of the budget process. All factors that affect the labor market should be considered as well as the City's financial resources. If, as a result of surveying labor market conditions, it is determined that an adjustment to the pay plan is necessary, the plan should be adjusted by applying a percent increase to each of the pay steps in each of the pay grades. By multiplying each pay step by the same percent, the basic structure of the plan is maintained as is the relationship between positions as ranked in the classification system. If it is also found as a result of the survey that the r i> salaries of one or more of the classified positions has increased substantially in the labor market, then that position should be moved up one or more pay grades in the pay plan to reflect that increase. The opposite should be done if the salary level of a particular position does not increase as rapidly as other City positions. When adjustments are made to the pay steps in each salary range, employees automatically are granted that increase. 60 r b C,1•f W m N ¢ e O b N b a C ¢ C - £ £ P N, en N b N b N b ," Y, N C, N N I.- N N in W U, O 0 N C',C Z m o n' L' £ CM N N N N In N - N too C- tO b b n — n m C of m o x '00' r r C, •• f £� O - - r N N ^ N £ m N O e' N, P C, to W in n e f") O, en ^ C7 in, S . u, v n v t7 n ,o N CI V : U, WI L. LLi Z: ^I C; in; z N: Qi } J, G, UI CNf b t1J C en 1n ,O J' F- •ICS' t IV b b n v CM N- tin c _ l X' N, ,n C N N- N, O, n e J Ci CI • . O .-. r r Y: L C'; £I a m — P N N N N N N V 1 Wi N N r Q H O — C C toe in N1 m C b w C. C f7 W £I LL .I © C N r C in try C [" N - C, -I ?i m t"1 Ci. CI wi S. £ r — — r C: L': Ui N — r CI HI Q. ; L: C: UI C: WI Ali ^I N, O C N u, (" 0 N -' N- ti CM O, 3I O' C C c ¢ S o, n b n n C o, ^^ H^ ¢ r r - r r r w LOS I O N C '0CM N C ^ O tOtO • to b m — .-. en C 1TCM en to C r ZI 0 C C Cl f1 n O o r C S C NI N C M O b f7 N, N, O N b C CM p — O N �. 'CC n b V, C — C X m ^ C O C" N m • • - t0 b r , N- C C to b a O O C C N ^ C V, C C C to N, N- O, N, N L9 O Z C, n O N- N, n^ C b - ^ NJ N O, C N N N C, C ^ J L W W ¢ - c, a O N J Q J 6' S U^ O Uor LL J W C C L' r L _ tWj C- W J O Q Q Z¢ QQZ Y W LC vi £ a Z O Y Y 4 W Z N L C Z Z W C C% Z m N b in -I LuN in r W J ≤ C W J 4 W- C Q W Ci a W J � O O O H U Z L i- Z N a - 0 6 d' r< X Q O C O H W W ¢ p 0'� J J££ Z 6 6' N in H H tr I O N X em .-< ve Ca) £ • . ❑ 2 -o CE ¢tom U Co 2 c G z l o N L C r e N Cx -4 r Z V Z ZI tv .- £ Ca IC' o o C£I ZI V: CI O GI m c:j N ¢I C> YI ¢ CI CI d W O < CIZ' C Gj F V.IZ WI G U. < O m £ £ XI >i .-1 C £I C <I vi CI C YI <I d .I C - r ¢ zlI zl c C 21 [ . I sl 0 mj 0 YI V m r n n ,n -- N m N N n m 0 0' C ry m N UI N m In -- -- N O N P - Q N N rl -I m m m N m in in P r m . U Nm m O NON N e N N C N e P N O r n n n N N O o -P n N m m m m n O m u rn -- N N N N r C N O r n -- O r n n In I N n N - '000 e •To N N Q n meN O H N N (Nm Inm C P P c r o N OIG -I X OI ¢ ^r Om e V 0' n N --r N G e 0- O.n O-- --m 0 0I 0N' Uf £I C C mn ne eln Pmn O emr m ❑ I .- -- -- -. -r -- .-- -. -- N N -r -r -I E] F FI CI a ¢1 £m Om Om ON O N P --m N O GI21 Nm Tm Or m -- N QVtQ IT V❑ N n OS n N N --N Oz P P I £E. I • • •• . - P -- 0'O P N -- Q• O- -I -- -1 -I -1 -I- - -1 -I N O 'to N m P o 0 to N e m N 01 0 X C NO N W O C P N N C P NOS -- P PNO NN noNNS O P O Inn N nr NQ em O N--nN Q I-.'- 2< 4 ¢ tV m mm N NOm 00 m0100' m m m Q Q r m Ve O N 00 m n 0 0 N W 0 OI rn m rP -- mP V1 InN m £2 - . - - . --O O\ mm m--- OlO P OI 0'00 O\ OI --1 -1 -1 -1 -1 -1 ¢I Ca Ca I J U tm V ❑mu. V x -.->pc .a£ 2 O ab¢m Fo>;XY ¢ IC 0, 6 F jV > %- M G < > jY 3: F .n A T EMPLOYEE BENEFITS •DATA AND RECOMMENDATIONS The following pages analyze the employee benefit portion of the City of Fayetteville's compensation package. The data for the two surveyed groups (other cities and local employers) is listed and summarized. Recommendations are then presented including the projected costs and savings to the City where appropriate. 4 13 c � fe u v4 Pensions 1 This category of data is difficult to compare without get- ting into actuarial studies which are beyond the scope of this study. Generally, it can be concluded that almost all of the municipal employers contribute to a pension plan in addition to the Social Security system. Contributions to Police and Fire pension funds vary greatly. The percentage figures reported in the survey were found to be greatly understated. Holidays The average number of holidays for non -uniform personnel was 78 hours or 9.8 days. For police employees, practices varied greatly both within Arkansas and outside of the State. In Arkansas, 5 of 9 cities surveyed included holiday compensation in the base salary for the position. The other four cities compensate employees with an average of 43 hours of extra pay per year. Outside of Arkansas, 5 of 9 cities surveyed give time off for holidays. The other four give extra pay or time off for holiday compensa- tion. The average time off and extra pay is 78 hours.' In total 13 of the 18 cities surveyed have time off or extra pay for holidays. For fire employees, in Arkansas, 5 of 9 cities included holiday compensation in the base salary for the position. The other four cities compensate employees with an average of 53 hours of extra pay per year. Outside of Arkansas, 6 of 9 15 1• j ' Uniform Allowance The average annual cost of uniforms for police and fire personnel is $250. The majority of cities provide uniforms on a quartermaster or requisition system rather than paying money to the employees. For public works personnel, most cities provide a uniform service as does Fayetteville. Longevity _ 14 of the 18 cities surveyed have this benefit. The aver- age maximum benefit is $100 to $130 per month depending on the relative base pay of the classification. Shift Differential Only 3 of the 18 cities surveyed have this benefit. Educational Incentive Pay 11 of 18 cities have this benefit for police and fire per- sonnel. The average maximum is $75/hr. for a Bachelor's degree in police or fire science or closely related areas. The pro- gram is usually an incremental one beginning with $25/hr. for an Associate Arts degree and $50/hr. for a Bachelor's degree. Only four cities have this benefit for non -uniform personnel. Other Premium Pay One city has various types of skill pay up to 12.5% of sal- ary for Police and Fire. Two cities have meal allowance for 17 4 • A M(y• rt4yY{ MM N V C • • N O t� L. I Z Z Z O l!\ 0 CU M M pLfl -+lNO m K fl M p m N O Z •r .- © • •C G O •p • • b ^ ^ •1 ^ ^ M 2 F M - i 11a! Nl r E1C1 d M M W 11\ ¢ IBC ¢ N= ¢ M m N N o M • U '41O' G V) ¢ N D) ¢ N N N N N m N III V) Z, G U C' U Z U U U • U C C • U U U U U d GrpCrp 2 Y Y Y Z Y Y 'Y } Y 1• L c E •m 4 C ^ — N ^ L; >I )-)-)->- N C' Y Y Z} } • 0) 00) W Z Y} Y Z U Y U Y 01 ti O U >)-> C) f• [C u S 8! S O Ll C C O O_ C C / p O O K • p O p • G ^p c ^M ^M p ^ 8 1 \ Y i C - O M c M I O I ^ - Z w! F-' ta-ZI T r O '- 0 0 0 0 0 0 O C 0 C IC m000 N t 7 2 r O _ O C O O O O O ..• O .+ ^ O O C O CI I OO O (L; C C F O O D C O O C L 00 O -II ••- 0 � I Ifs C Lr N C Lr CC °- N w w w h�-- rrwww ww= K 4 F �r L. I 4 i L ' C L C t CCI OO 1 1 1 1 1 I 0 1 1 I 1 1 IC fr-i =1 OO In I 1 I I 1 ^ 1 1 1 •1 1 1 • U •^ N U R I 1 1 CI {. O OO IC III I III I I I M 1 I 1 f4 .j,' 1 I Z>i FL C1 fi 4,01 T2 4a V ¢ L 1 1 1 1 1 OI 1 I C C C L 1 'U' VI [+• CI C1 A p I I I I I I f I 1 I t N 1 2 C[ O I I I I 1 • I I I I U 1 I • t I I N - z >C P y` , 10 1 1 Ii I CII S S .A U C I— CCs CI U O o Cu a 4 IC e O cC P- O r� m O N mctCl O • •O O • O • $OO 0m N �i ti O m Inn• N U-' a N ^ I!\ L ^ - [�Czi m o O o en p Ic I. M m p pJ o to O In o h- O> 0 I"\ - v^ M fl- t K O N O t� O N N o in m om(\ p c c m A m In P t - N- vNi U • V �7¢c CC C) OO 3CC C 19 fi T _ WI d u w -- z u a m v a O -C =0000 C 0 Q w 00 in O a) a) en • • La C it • N 2 Z .^ N Z Z Z N N N �'-� Z 2 r N (7 N WI C O� N N C C i JI Cl Ci G w O 9 0 0 0 0 C N CI O r` q C C • ra — O`. N 0 0 a) a) • . In m Z C- ^ N N 1A Z Z — N Z C Z Z N P'1 N Z 0, J C o w LL L N N C C N Vt a) w V a) C a C) V C) 4. L _. L O � _ .� W Y ._ '� L .L. LL LL LL W Z T LL L ` LL 4 A S- C C •O e0 wL C p'. N C w(.' C Ci i u m m 0) o E N a m d W, Lii,C O, T U U U u L L U U •U •u - 6 a) O.-.—.— CO r OI LL v;. O'-- r 00 H O O 0 Z Z} O, Z cc O O O O Z Z N Z Z C L J, G 6 C O W, 4 a) C N N N N m La y yI N y W' ^G 61 O) in a) Y N Y} V. Y LL y y >- Y N CI CI WI C Q. ?I Q a C, WI wi I -Li O tic I . O O in w CC W C CO 0000 O` b b CM CM C. Z Of N it O, b me E Z 0 ^ - f• -� ...•- Z O N I I z Z d C O V C) C) d a1 C a) L T L r LL LL Is. H In a a a) u ci u t N W ^ r r W W W N-. C Z N N 40 O N O N O N Z- ZO O^-- N H C - pI ,-n .--� r G ^ C. ^ C. ^ Z Z Z Z LL1 O O O I.- 4- o O O v N v N v Ly J J W �--- Q LL 0 G C C Z Y O C LO _ ,~ .. N H C 00 LL N L r L N 0 S WC J J J O In Y Li C C ^J C as W O ^J .Z-. J C O � V w C C J W 0 C J H --. J f C r Z= i W O Y Sr G S S O LL W J W W r L C W O C W C CC Z r L Vl C- H J J H N C w Z CC> C <C W F- • Z W f 0 Q W C J J _ Y w Q W L1 A. .o r SUMMARY OF EMPLOYEE BENEFITS LOCAL EMPLOYER SURVEY This is a summary of the data presented on the next two pages. Health Insurance Local employers generally contribute more money and make a higher percentage contribution for health insurance coverage than does the City of Fayetteville. The following is a summary of premium costs and contributions. Employee Dependent Employees & Coverage Coverage Dependents Local Fay Local Fay Local Fay Employer pays $40.00 $40.00 $60.00 $26.97 $100.00 £66.97 Employee pays 5.00 -0- 30.00 59.10 35.00 59.10 $45.00 $40.00 $ 90.0'0 $86.07 $135.00 $126.07 Fayetteville pays: 100% of employee coverage 53% of employee and dependent coverage Local employers pay: 87.5% of employee coverage 74% of employee and dependent coverage Dental Insurance 12 of 25 have the benefit. 8 of the 12 with the benefit contribute toward the premium for dependent coverage. Life Insurance The average face value of coverage is $21,000. The average premium paid is 35¢/$1,000/mo. 23 Shift Differential 11 of 25 employers reported this benefit primarily for manufacturing positions. The approximate differential is 25e' /hr. for the second shift and 35k /hr. for the third shift. Other Premium Pay 6 of 25 employers reported some type of bonus/incentive system on top of base salary. 25 U C > S CI J _ •O a) N r E C c • C) J• ' e 9 e m S.- •ja) U C J m •, o t e A> ' C• > S ♦' C .#' Q L W O O O O L C O OOOOO co O O^ O OOO _ _ _ Z• O N M 2 Z Z Z Z W Z 1 Z Z Z Z Z Z P Z Y U I> lA O'I O O! M O= Y1 q• C S. d y Cr ^G N JI L I- O q I. c •O >. V Fr`V c O. L I E q L L g tl L W I S. N t •. C. In O N O M N Q L tl Kl GI N'S 1 - OO 0 C O O O o O N r O N 0 0 0- O 10 O CU' C Z Z 4- � Z Z a r Z A r 1 1O Z z 2 Q Z•O u d Z - - C C.C W N O CI o^ .. .. C C N > +-1 4 C O 1_ C C Y�H N ++ N UJ 61 'r N C O N C Lf fe G IC I O S - o In S In ae O tl p tt ys ,Jl = c Q — •N -I n in C N W r .••I N l'I u9 W, O ¢' W rl 6 Y C C H, N A 6 L ZO° O 0 0 O_ 0 0 0 0 0 C> i O 0 0 0 0 O _ 0 Z 0 _ Z^ Z Z 2 Z Z 1 2 Z Z L Z N Z Z Z Z Y A p N U C a O C C N E. lu Y,Z o. O In a n ea O OOr- C, 1 I 1 I COO I o 4a OOOO o c o W Cm Q o O O z Q z z Y Z z z z 10 z z z i i z z z I z z z Z A w w J' C. O, J, wI w I C c LL� O J O O O o W O OOO o W O I OOOOOOO O ..- L Z Z Z Z Y Z I Z Z 2 Z Z Z Z L Y r Z Z Z Z 2 Z Z r Z >• ¢• CZ ~ W 1 I I W I IaJ C_ o or W I OO I I Z I n r-. J O J U, OO 1 O O O Z Z Z .no I Oz in I I c I 1O t'f IC L>. r• 1C I CI 1O Z o O O O1 1O Z z Z ,Z Y, C. I Zr Z 1 1 1 Z I O U, In, L Y N YI N J t OOOO VI I y ..., 1 $J N .••r 1 .)( 1 N Z ?'JZ Z Z Z Ill O O YI IO fl I N N O r I � N a N N O N N T N V l ¢ Y ¢ ¢ C ¢ Y I I I 1 Y I T 1 1 Y I I I I I I I I I Y I I C> r Sr 1 I 1 1 I • I I I I 1 I I I 1 1 1 1 1 I 11 I Ill I N r 1 I I I I I I I I IA 1 I {O 1) 1 I() I I I I N I ^ I N N I I 1 I I I 1 I I Cu I I N N I Y Q N In N L V1 Y¢ N N ¢ ¢ Y 6' N I O¢ 1 I I I Y I I I >l I T T I ac } I Y I Y}¢ } I Y I I I I i i '. Y 31 3i I n I I in I I I I I 9 i N. I 10 O 1 . N I .••r I r -I — •'w 11 I r•I a I 1 1 I — I I 1 ^ I ^In N I (7 I Q' y1 N VI Vl N III in N yI Y N N In l ¢¢¢ 2' N In } N in in Y¢ in v I ¢ ¢ i Y T T ¢ Y T Y{ Y I ¢ Y¢¢ C I i N f 1 T O COO O I N O^ I O^ I C" I Id a ^ Gl \! I .-I W Yl A- I I m — in =1 N V ✓1 WI Q C N N •n N N in Q C IY O ¢ Y = C 5 ¢ ¢ ¢ ¢ Y ¢ ¢ ¢ ¢ O ¢ ¢ II 6 ¢ ¢ ¢ T Y Y T T Y T Y Y} Y } T Y Y Y T Y T T T Y T Y 1.) Cu -I N - ^ ^ .••I ^ ^ - .•I .- l', N - - r .. f'1 - ^ •-I r -r YIN` - r r-. r N Y N a OT a O' r N r O N. r '.CI W.• O O' 1O 1O O 1O O O 1O m n I SL CO 'J C W LL C S ^ J Z Z O O.C Y in 1. J> 2 >K a.- 27 • rJ -`. The estimated cost of this increased benefit for approximately 50 exempt and 250 other employees is as follows: Exempt employees: $15,000 x 360/$1,000 x 12 months x 50 employees = $5,400 Other employees: $15,000 x 36¢/$1,000 x 12 months x 250 employees = $16,200 Total estimated cost: $21,600 Pensions No changes in this benefit are recommended. Holidays Additional pay or time off for police and fire personnel should be instituted beginning in 1985. This extra pay or time off should be in addition to the holidays already included in the base salary for these positions. Police personnel should receive 64 hours of extra pay or time off and fire personnel 72 hours, except the Chiefs and Assistant Chiefs in both depart- ments. The estimated cost of the benefit is calculated as fol- lows: Police: avg. $8/hr x 32 hrs. in pay x 47 employees = $12,032 Fire: avg. $5/hr. x 36 hrs. in pay x 52 employees = $9,360 Vacations No change in this benefit is recommended. Sick Leave No change in this benefit is recommended. 29 Educational Incentive Pay k The City should institute an educational incentive pay pro- gram for police and fire personnel with the following increments being established and paid as a lump sum during the last month of the fiscal year. Persons achieving the degree sometime dur- ing the fiscal year should receive a pro -rated amount at the end of the year in which they receive the degree. Once an employee obtains the appropriate degree, the benefit would be paid annually. The following increments are recommended: ft Associate Arts Degree in general - $2UU/'yr. Associate Arts Degree in police or fire related area - $300/yr. Bachelor's Degree in general - $500/yr. Bachelor's Degree in police or fire related area - $600/yr. Since we have no records on police and fire personnel pres- ently holding degrees, we cannot estimate the cost. However, once a program is set up, typically 30-40% of employees receive such a benefit. Based on present personnel, including Chiefs and Assistants, the cost would be 99 employees x 35% x $300/yr (average benefit) = $10,395 Bonus Pay A bonus pay system should a plan should be established the 1986 fiscal year. This of 7-1/2% of base salary. It sum, in the last month of the be established by the City. Such during 1985 and be in effect by system should have a maximum bonus should be paid annually in a lump fiscal year. Eligibility for the 31 y -M EMPLOYE£ -BENEFITS RECOMMENDATIONS COST SUMMARY - BASED ON 1984 DOLLAR Health Insurance $18,000 Life Insurance 21,600 Holidays 21,392 Uniform Allowance (16,025) Longevity Pay 32,600 Educational Incentive Pay 10,395 Bonus Pay (1986) 35,936 $123,898 33 The calculations are done at the maximum level of salaries and benefits because this allows the total package to be compared from employer to employer. Even though all employees do not reach the maximum levels, these maximum levels define the City's commitment to its employees. In order to better understand the following calculations, a set of definitions precedes the analysis of the four classifica- tions. Other classifications can also be costed-out in the same manner. Basically, what is revealed by' this analysis of addi- tional classifications is that the compensation package is the same for other employees in that group and that, consequently, once the salary and benefit market levels are determined for the t analyzed classification, the same conditions apply to the higher classifications. What the following analysis does show as a general rule is the following: 1. The present maximum base salaries of the City of Fayette- ville are higher than both other cities and local employees. 2. The employee benefit package of the City is considerably lower than other cities, and generally lower than local employers. The resulting recommendations as indicated on the following analysis sheets, on the previous summary of employee benefit recommendations, and as embodied in the pay plan presented later in this report, adjusts the City of Fayetteville's compensation package to meet these two differences. 35 a CM . r 'r - .n' O. CROSS PAY TO EMPLOYEE - Total employee pay including bang pay, overtime, longevity, unused sick leave, holidays and various other premium payments: educational incentives, performance bonuses, et cetera. (R x D) +1 P. S.T. (STRAIGHT TIME) PAY FOR HOURS WORKED - The amount an employee earns on an annual basis for every hour worked. This annual amount does not include any employee benefits in terms of vacation, Holidays, sick leave, premium pay, et cetera. (B X C). Q. TOTAL COST TO CITY EXCLUDING PENSION - Employer's total cost paid out per employee, but not including employer pension contributions. This figure includes payments to the employee as well as all employee benefits. P + L R. 1. OF BENEFITS WITHOUT PENSION - Employee benefits as a per cent of straight time pay for hours worked. This comparison does not include the variable pension costs of the municipality. L - P S. TOTAL COST TO CITY INCLUDING PENSION - Employers total cost paid out per employee. p + N f T. 7. OF BENEFITS WITH PENSION - Employee benefits as a per cent of straight time pay for hours worked. N - P 37 MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. Maximum salary in pay plan B. $15,024 2080 hours C. 2080 hours + Si OT hours - (144 vacations hrs + 64 hours holiday + 36 sick leave hours) D. 2080 hours + Si OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 144 hours X hourly rate H. 64 hours X hourly rate I. 36 hours sick leave taken X hourly rate J. -0- K. 81 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 13% (Social Security + City Pension Plan) X gross pay (line 0) 3y t r 1 MAXIMUM SALARY AND BENEFITS COMPARISON ACCOUNT CLERK I DETAIL OF TOTAL COST CALCULATIONS Local Employees A. Average maximum base salary B. $1U,179 : 2080 hours C. 2080 hours + 81 hours OT - (120 hours vacation + 36 hours sick leave + 69 hours holidays) D. 2080 hours + Si hours OT E. $100 X 12 months F. $21,000 face value X .35/$1,000 X 12 months G. 120 hairs X hourly rate H. 69 hours X hourly rate I. 36 hours sick leave taken X hourly rate J. -0- K. $150 estimated average incentive/bonus pay + (81 hours OT X hourly rate X .5) L. Lines E -K added together M. 10.5% X gross pay (line 0) 41 4.. if MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION PRESENT OTHER CITIES FAYETTEVILLE AVERAGE MAXIMUM LOCAL EMPLOYERS RECCM 1ENDED PACKAGE A. Base Salary $14,684 $13,471 $13,676 $13,190 B. Hourly Rate 7.06 6.48 6.58 6.34 C. Hours Worked 1,864 1,837 1,883 1,864 D. Hours Paid 2,126 2,126 2,126 2,126 Employee Benefits E. Health Insurance $ 804 $ 1,280 $ 1,200 $ 876 F. Life Insurance 4 56 88 65 G. Vacation 1,017 1,036 790 913 H. Holidays 452 505 454 406 I. Sick Leave 381 350 355 342 J. Uniforms 148 148 46 148 K. Premium Pay 162 1,349 301 1,735 L. Subtotal 2,965 A,7271 3,234 4,o25 Pension 1,972 1,694 1,500 1,978 N. TotaI Benefits ADO 6,415 4,734 b.o03 0. Gross Pay to Employee $15,172 $15,125 $14,290 $15,214 P. S.T. Pay For Hours Worked 13,160 11,904 12,390 11,818 Q. Total Cost (-) Pension 16,128 16,628 15,624 16,443 R. % Benefits 22.6% 39.7% 26.1% 39.0% S. Total Cost (+) Pension 18,100 18,322 17,124 18,421 T. % Benefits 37,5% 53.9% 38.2% 54.4% 43 w .4 f4 4 I {I Y rI I � • MAXIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Other Cities Average Maximum A. Average maximum base salary B. $13,471 ; 2080 hours C. 2080 hours + 46 OT hours - (160 vacation hrs + 54 sick leave hours + 78 hours holiday time off) D. 2080 hours + 45 OT hours E. $106.66 x 12 months F. $13,000 face value X .36/$1,000 X 12 months G. 160 hours X hourly rate H. 78 hours X hourly rate I. 54 hours average sick leave taken X hourly rate J. $148 - most cities use a uniform service such as Fayetteville; Fayetteville 's figure is used. K. $1,200 longevity + (46 hours X hourly rate X .5) L. Lines E -K added together M. 11.2% X gross pay (line 0) (This is an estimated figure) 45 a, XIMUM SALARY AND BENEFITS COMPARISON MAINTENANCE WORKER I CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Recommended Package A. New maximum in pay plan achieved after 6 years B. $13,850 ; 2080 hours C. 2080 + 46 O.T. hours - (144 vacation hours + 54 sick leave hairs + 64 holiday hours) D. 2080 + 46 O.T. hours E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 144 hours X hourly rate H. 64 hours X hourly rate I. 54 hairs sick leave taken X hourly rate J. $148 provided by City K. $989 incentive pay + $600 longevity + (46 hours Q.T. X hourly rate X .5) L. Lines S -K added together M. 13$ X gross pay (line 0) EP] C. - a r MAXIMUM SALARY AND BENEFITS COMPARISON POLICE PATROL OFFICER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. Maximum salary in -pay plan B. $19,068 _ 2080 hours C. 2080 hours + 69 OT hours - (120 vacations hrs + 40 sick leave hours) D. 2080 hours + 69 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 15 days X hourly rate H. Holidays included in base salary I. 40 hours average sick leave taken X hourly rate J. $425 paid to employee K. 69 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 30% X gross pay (line 0) 49 V AS MAXIMUM SALARY AND BENEFITS COMPARISON POLICE PATROL OFFICER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Recommended Package A. New maximum in pay plan achieved after 6 years B. $17,676 = 2080 hours C. 2080 + 69 O.T. hours - (120 vacation hours + 40 sick leave hours + 32 holiday hours) D. 2080 + 69 O.T. hours + 32 holiday hours of extra pay E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 120 hours X Hourly Rate H. 64 hours extra pay or time off X hourly rate (assumed 32 hours in pay and 32 hours time off) I. 40 hours sick leave taken X hourly rate J. $250 on quartermaster system K. $1,328 incentive pay + $600 longevity + $600 educational incentive + (69 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 30% X gross pay (line 0) 51 -r t MAXIMUM SALARY AND BENEFITS.COMPARISON FIREFIGHTER CLASSIFICATION DETAIL OF TOTAL COST CALCULATIONS Present Fayetteville A. Maximum salary in pay plan B. $7,964 ; 2,912 hours C. 2,912 hours + 45 OT hours - (216 vacations hrs + 51 sick leave hours) D. 2,912 hours + 45 OT hours E. $66.97 X 12 months F. Estimated cost based on $1,000 face value G. 9 shifts X hourly rate H. Holidays included in base salary I. 51 hours average sick leave taken X hourly rate J. $400 paid to employee K. 45 hours OT worked X hourly rate X .5 (the half time of time and a half) L. Lines E -K added together M. 29% X gross pay (line 0) 53 A. - MAXIMUM SALARY AND BENEFITS COMPARISON FIREFIGHTER CLASSIFICATICN DETAIL OF TOTAL COST CALCULATIONS A. New maximum in pay plan achieved after 6 years B. $16,834 2,912 hours C. 2,912 + 45 O.T. hours - (216 vacation hours + 51 sick leave hours + 36 holiday hours) r D. 2,912 + 45 O.T. hours + 36 holiday hours of Extra Pay E. $72.97 (increase of $6/mo) X 12 months F. $15,000 face value X .36/$1,000 X 12 months G. 9 shifts X hourly rate H. 72 hours extra pay or time off X hourly rate (assumed 36 hours in pay and 36 hours time off) I. 51 hours sick leave taken X hourly rate J. $250 on quartermaster system K. $1,263 incentive pay + $600 longevity + $600 educational incentive + (45 hours O.T. X hourly rate X .5) L. Lines E -K added together M. 29% X gross pay (line 0) 55 a. - .;j t,...r of the classification. Employees are reviewed and evaluated on their anniversary date of employment. .If their performance has been satisfactory, they should be advanced to the next step in the pay plan. If their performance is not satisfactory, they should remain at their present step until their performance improves. A satisfactorily performing employee should reach the maximum step in their pay grade in six years. In cases of promotion within the City service, employees should be advanced to Step A of the pay grade assigned to their new classification. Since there is some overlap in pay grades assigned to classifications where promotions might occur, employ- ees being promoted should be advanced to the next step in the new pay grade which exceeds their present salary. They should then be reviewed annually and advanced to the next step if their performance is satisfactory. Employees should not be paid less than the minimum base salary -of their pay grade. Also, they should not have a base salary beyond the maximum of their pay grade except during the transition stage of. this pay plan when the City may determine, and we recommend, that employees above the maximum base salary will receive their present pay until the salary range catches up with them. While their base salary is frozen, these employees are eligible for other premium pay benefits such as longevity, educational incentive and bonus pay which should be paid out as recommended elsewhere in this report. A listing of employees above the maximum and below the minimum base salary for their pay grades is on the following pages. 57 has been adjusted 4%. Mary Smith's new salary as of July 6 would be $13,379. Implementation costs, based on 1984 salaries, would be estimated as follows: 25 employees below minimum base salary.......$18,600 Movement into steps during the fiscal year based on anniversary dates ($5,750,000 annual payroll X 2.5% average step increase X 1/2 year - the average anniversary date) .................. $71,875 $90,475 Less 62 employees aabove maximum base salary - base salaries frozen until pay grade catches up .............. ....(49,615) $40,860 EMPLOYEE BENEFIT COSTS $123,898 TOTAL IMPLEMENTATION COSTS $164,758 59 - r+ t• 4 P an°a CORPORATED Paul A. Resume, M.P.A. Robert A. Beezat. M.P.A. C.A. Christ, Ed.D. Steven P. Heffner, M.P.A. James C. Lyons Duane W. Olivier, M.A.P.A. MICROFfWMED PAUL A. REAUME ASSOCIATES Board of Directors City of Fayetteville P.O.. Drawer F Fayetteville, AR 72702 Dear Directors: CHICAGO 2929 MacArthur Boulevard • Northbrook, Illinois 60062 AC 3121498-3277 March 23, 1984 Thank you for the invitation and opportunity to meet with you last week to discuss the scope of a proposal to address your concerns regarding employee compensation issues involving the Fayetteville municipal government. I appreciated the courteous and professional manner in which the discussion was conducted. As we explored the various areas of concern which you as a Board of Directors have, and examined possible solutions, I am sure that it was evident to you, as it has been to me over the years, that no perfect "system" will answer all the questions and concerns you as policy makers have. Rather, the process of arriving at decisions regarding employee compensation is as important, if not more important, than the facts and figures developed in this type of study. We think that both the "process" and "system" set forth in our proposal will help you make decisions that you are comfort- able with as policy makers and will speak to the concerns and issues raised by employees as a group or individually. Also, we think that our proposal and subsequent work with you will result in a compensation system which will be capable of implementation now and maintenance by your staff in the future. This study would be accomplished by and be under the super- vision of the undersigned Principal Associate of our firm (Biography attached) who would perform the majority of tasks set forth in the proposal. He would be assisted in the data gather- ing and employee interview segments of the. Study by Steven P. Hoffner, a full-time Principal Associate of our firm. Mr. Hoffner is a former city manager with specialized experience in organizational analysis, wage and benefit cost analysis, employee relations in both union and non-union municipal environments, ASSISTING IN THE ACHIEVEMENT OF EXCELLENCE IN THE PUBLIC SERVICE classification and compensation studies and personnel systems analysis. We think that public and private sector "hands on" management experience combined with the extensive consulting experience of our staff assigned to this Study sets our firm apart from others you might consider. Specifically, we would propose the following scope of services: PURPOSE OF STUDY: Develop a comprehensive classification and compensation system covering all City of Fayetteville employees with work being performed in the following major task areas: Update classification descriptions and develop a classifica- tion system which assigns all personnel to a particular classification and ranks all classifications on a compara- tive analysis basis. 2. Conduct a salary and benefit survey of public and private employers affecting Fayetteville's labor market on a local, regional and national basis, depending on the classifica- tion. 3. Recommend a pay plan structure which assigns all classifica- tions to appropriate salary ranges based on factors of internal comparisons within the City organization and exter- nal comparisons with labor market considerations generated in #2 above. 4. Prepare a management letter which speaks to areas of poss- ible efficiencies of operations, adequacy of staffing levels and possible areas of duplication or overlap of functions which bear further, more detailed inquiry and examination by the City of Fayetteville. METHODOLOGY OF STUDY: The following steps are taken in a some- what chronological order with some overlap as to initiation and conclusion of various segments of the Study. Classification 1. Determine any areas of concern among City officials and employees relative to the completeness and accuracy of present classification descriptions. 2. Conduct field audits and interviews of approximately 35% to 40% of City employees to determine conformance of actual work activities to those set forth in writing. L 3. Update the written classifications as necessary to reflect current duties and responsibilities (It is assumed from our discusssion last week that the classification descriptions are relatively current and only 10 to 15 of such descrip- tions will have to be updated or rewritten.) 4. Write new classification descriptions and delete old ones as necessary where it is determined that additional classifica- tions more accurately describe the gradation of duties and responsibilities of various work being performed or where old descriptions are no longer applicable. Analyze the comparative levels of duties, responsibilities, education, technical knowledge, training, skills, abilities, experience, span of control, and similar factors of the various classifications in the City service and rank them in a classification structure. Allocate each employee to an appropriate classification within the revised structure. Salary and Benefit Survey 1. Meet with elected officials and City staff to determine any concerns regarding present City compensation components. 2. Determine "benchmark" municipal classifications which lend themselves to comparison to other public and private employers. 3. Determine comparable public and private employers to be surveyed. Prepare written questionnaire for mailing to employers of comparable positions regarding both salary and fringe bene- fit information. Personally interview appropriate local employers to gather comparable data and verify responses to written question- naires by telephone calls to check the accuracy and com- pleteness of data. 6. Analyze data received and develop total cost comparisons of salary and benefit information for selected City benchmark classifications. Make recommendations and allocate all classifications to appropriate pay ranges based on internal consistency and external comparison factors. ..,.._;l. - w J/ - _1 . Pay Plan Structure: 1. Work with designated City officials to review the alterna- tive pay structures available to City. Present the pros and cons of the alternatives. 2. Determine a pay plan structure which best suits the needs of the City of Fayetteville municipal organization. 3. Allocate all employees within the classification system to an appropriate salary level within the recommended pay plan structure. Management Letter: 1. While in the process of conducting interviews and field audits under the Classification portion of this Study, note any .areas which bear further, more detailed investigation and evaluation in the future regarding management of the various City Departments and operations. 2. Prepare and submit a management letter which outlines areas for further inquiry and suggests possible improvements for future City study and action. COST AND TIMING OF STUDY: The above work, resulting in the provision of 15 copies of a final written report, would be accomplished at a total fee of $28,300.00 including all expenses. Any additional work beyond that outlined above and specifically authorized by the City of Fayetteville would be billed at an hourly rate of $55.00 per hour. Any additional expenses due to additional authorized work would be billed to the City on a cost only basis with no addi- tional overhead or add-on costs. An invoice would be submitted to the City on a monthly basis as work progresses covering both professional fee and expenses for the previous month. Payment of such invoices is expected within 30 days of submission to the City. We would be prepared to undertake this assignment within 20 days of notification to proceed by the City and would complete the work within a 90 to 120 day time limit from commencement of the Study. Again, thank you for the opportunity •to submit this proposal for your consideration. If you have further questions or need clarification regarding any particular aspects of this proposal, please let me know. V V�1 •'1r , ra We would look forward to working with you on this important Study. Sixty to seventy per cent of most municipalities' budgets are allocated to employee salaries and benefits. Also, the human resources available to your municipal organization to accomplish your public service objectives lie mainly in your municipal employees. The decisions you make as policy -makers in Fayette- ville on these important matters are among the most important you make. We are confident our experience and expertise will assist you in making decisions which are acceptable to both elected officials and employees. Very truly yours, Frt A. Beeza RAB:ds/Encl r. V' F ` �: V ` Li T ' INCORPORATED PAUL A. REAUME ASSOCIATES Paul A. Resume, M V.A, EYd/� l Robed A. Beeaal. M.P.A.fiG(�ry/,Ap/ry�r�j,.� (ya(G 4L7L (4 C.A. Christ. Edo. Steven P. Hollner, M.P.A. James C. Lyons CHICAGO Duane W. Olivier. M.A.P.A. 2929 MacArthur Boulevard • Northbrook, Illinois 60062 AC 3121498-3277 BIOGRAPHY ROBERT A. BEEZAT Mr. Robert A. Beezat, 41, has been providing management consulting services in the public sector since 1973• During this time, Mr. Beezat has developed a significant knowledge of and analytical ability concerning municipal employee salary and benefit programs and practices. He has worked with over 70 cities in various cooperative efforts to compensate municipal employees fairly and equitably and within financial capabilities of the cities. He has been instrumental in developing one of the first and most suc- cessful metropolitan cooperative programs in the'United States, based on a "Total Cost" comparative model. He has served as an expert witness in arbitration hearings concern- ing municipal employee salary and benefits. Mr. Beezat has also served as project director on a number of organization and management studies of overall municipal operations, including municipal electric utilities, as well as specialized departmental studies including Police and Fire Department operation; he has served as recruitment director and assisted on numerous executive search assign- ments involving recruitment of professionals for positions of City Manager, Police Chief, Finance Director and Public Works Director. Previous to his consulting activities, Mr. Beezat served, as a City Manager in an independent city and as an Assistant Manager in a metropolitan suburban community. He has also served in the federal government as a program director and field representative. Educational and professional achievements include a. Bachelor of Science degree from Loyola University of Chicago and a Master of Public Administration degree from Roosevelt University in Chicago. He is a full member of the Inter- national City Management Association (ICMA) and an active member of the Illinois Public Employer Labor Relations Asso- ciation (IPELRA). ASSISTING IN THE ACHIEVEMENT OF EXCELLENCE IN THE PUBLIC SERVICE