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Home My WebLink About73-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 73-22 File Number: 2022-0177 2022 CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $780,000.00 TO FACILITATE THE CITY-WIDE 2022 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $1,051,000.00 for 2022 for General Fund employees; and WHEREAS, including all employees (Water and Sewer, Recycling and Trash Collection, etc. as well as General Fund employees), the cost will be about $2,505,000.00 for 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the amount of $780,000.00 to fund the city-wide 2022 Employee Compensation Adjustment. PASSED and APPROVED on 3/15/2022 Page 1 Printed on 3116122 Resolution: 73-22 File Number: 2022-0177 Attest: If I 'Tn y Kara Paxton, City Clerk Treasurer �'�L� Page 2 Printed on 3110122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0177 Agenda Date: 3/15/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: C.3 2022 CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $780,000.00 TO FACILITATE THE CITY-WIDE 2022 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $1,051,000.00 for 2022 for General Fund employees; and WHEREAS, including all employees (Water and Sewer, Recycling and Trash Collection, etc. as well as General Fund employees), the cost will be about $2,505,000.00 for 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the amount of $780,000.00 to fund the city-wide 2022 Employee Compensation Adjustment. City of Fayetteville, Arkansas Page 1 Printed on 311612022 Paul A Becker Submitted By City of Fayetteville Staff Review Form 2022-0177 Legistar File ID 3/15/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/24/2022 CHIEF FINANCIAL OFFICER (110) Submitted Date Division / Department Action Recommendation: 2022 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $780,000 TO FACILITATE THE CITY-WIDE I 2022 EMPLOYEE COMPENSATION ADJUSTMENT Budget Impact: xxxx.xxx.xxxx-51xx.xx Citywide Account Number Fund N/A N/A Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 65,706,187.00 $ 7,323,143.00 $ 58,383,044.00 $ 780,000.00 59,163,044.00 V20210527 Previous Ordinance or Resolution # Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF MARCH 15, 2022 TO: Mayor and City Council FROM: Paul A. Becker, Chief Financial Officer DATE: February 24, 2022 CITY COUNCIL MEMO SUBJECT: 2022 Employee Compensation Appropriation Authority RECOMMENDATION: The Mayor's recommendation is for the City Council to appropriate funds to provide for the compensation package outlined below. DISCUSSION: As was discussed during the 2022 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2021 operations and the Merit Staff Pay and Benefits Study recently completed. Sufficient amounts for this plan were included in the 2022 General Fund budget, however other funds require additional budget amounts which are included in the attached budget amendment. Other operating funds such as the Street, Parks Development, Water & Sewer and Recycling & Trash Collection funds have the capacity to afford these salary Increases. Mailing Address: 113 W. Mountain street www.fayetteville-ar.gov Fayetteville, AR 72701 The Mayor's Guiding Philosophy • Recommendation supports on -going pay increases with minimal risks that can be supported by potential future revenue growth. • Compensating personnel at market levels based on a pay study conducted by a selected professional firm specializing in the design of compensation plans. Based on these results, the Mayor is recommending the following compensation package to the Council: • The plan would provide an increase to merit personnel falling under the new minimum of the range effective 04/04/2022. • The plan would provide for a one step increase for eligible Police and Fire uniformed personnel beginning 04/04/2022 keeping everyone in a step. • The plan would provide for merit increases for other employees to be distributed based on merit (5.0% merit pools will be created for that purpose). • Amounts to merit employees will be based on performance as determined by the appropriate department/division head. These increases will go into effect beginning 04/04/2022. • To be eligible merit employees must have completed at least six (6) months of service which means they must have been paid on Pay Period #21, 2021 which equals a start date before 10/18/2021. • Uniformed personnel to be eligible to receive a step increase must have completed at least one year of service which means they must have been paid on Pay Period #8, 2021 which equals a start date before 04/19/2021. 2 • The 2022 cost of this plan is projected to be $1,051,000 in the General Fund. The 2022 cost for all funds would be $1,831,000. • The on -going cost of the plan in future years will be $1,438,000 for the General Fund and $2,505,000 for all funds. BUDGET/STAFF IMPACT: The impact of this proposal would be to increase the budgets for various funds as follows: 2022 - Step / Merit Payplan Impact ANNUAL PARTIAL BUDGET FUNDING SOURCE IMPACT IMPACT AMENDMENT 1010 - General 1,438,000 1,051,000 - 2100 - Street 178,000 130,000 130,000 2130 - Parking 25,000 1S,000 1S,000 2180 - Community Development 23,000 17,000 17,000 2250 - Parks Development 108,000 79,000 79,000 2930 - Drug Law Enforcement Grant 3,000 2,000 2,000 5400 - Water and Sewer 466,000 341,000 341,000 5500 - Recycling and Trash Collection 175,000 129,000 129,000 5550 -Airport 34,000 25,000 25,000 9700 - Shop 55,000 40,000 40,000 Total 2,505,000 1,831,ODO $ 780,0DO 3 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number Non -Departmental (800) 2022 /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A BUDGET ADJUSTMENT IN THE AMOUNT OF $780,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2022. RESOLUTION/ORDI NANCE COUNCIL DATE: 3/1 5/2022 LEGISTAR FILE ID#: 2022-0177 KeA/L4v $p v 6nq,e,r 2/25/2022 2:06 PM Budget Director / Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL 780,000 780,000 v.20220113 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 2100.410.4100-5106.00 130,000 - EX Personnel Contingency - General 2130.430.9130-5106.00 18,000 - EX Personnel Contingency - General 2180.642.4930-5106.00 17,000 - EX Personnel Contingency - General 2250.520.9250-5106.00 79,000 - EX Personnel Contingency - General 2930.200.2960-5106.00 2,000 - EX Personnel Contingency - General 5400.720.4000-5106.00 341,000 - EX Personnel Contingency - General 5500.750.5000-5106.00 128,000 - EX Personnel Contingency - General 5550.760.3940-5106.00 25,000 - EX Personnel Contingency - General 9700.770.1910-5106.00 40,000 - EX Personnel Contingency - General 2100.410.4100-4999.99 - 130,000 RE Use Fund Balance - Current 2130.430.9130-4999.99 - 18,000 RE Use Fund Balance - Current 2180.642.4930-4320.00 - 17,000 RE Grant Funding CDBG 2250.520.9250-4999.99 - 79,000 RE Use Fund Balance - Current 2930.200.2960-4999.99 - 2,000 RE Use Fund Balance - Current 5400.720.4000-4999.99 - 341,000 RE Use Fund Balance - Current 5500.750.5000-4999.99 - 128,000 RE Use Fund Balance - Current 5550.760.3940-4999.99 - 25,000 RE Use Fund Balance - Current 9700.770.1910-4999.99 - 40,000 RE Use Fund Balance - Current H:\Budget Adjustments\2022_Budget\CITY COUNCIL\03-15-22\2022-0177 BA Employee Compensation 2022.xlsm 1 of 1