Proposed 2012 Budget - Salaries and Wages

City of Brandon Proposed 2012Budget – Salaries and Wages Presentation to media January 24, 2012*Contents reflect proposed 2012 budgetas debated by Brandon City Council on Dec.9th and 10th, 2011

Opening Comments The information presented in these slides represents the proposed 2012 operating budget, as debated by council on Dec.9th and 10th The 2012 proposed budget has been internally reviewed and cut 4 times now, a proposed 5th round of cuts to be considered by council on Feb.7 Following Feb.7 debate of council, public will have opportunity to give feedback on proposed budget through a number of ways (town hall meeting(s) will be scheduled, public hearing must precede adoption of Financial Plan) Intention is to have Financial Plan given final approval by the end of April, however, timelines are somewhat flexible based on public comment City Council remains committed to addressing the ongoing infrastructure deficit in this city, with 20 per cent of the overall operating budget in 2012 dedicated to infrastructure maintenance, improvement or planning of some kind The City of Brandon recognizes the duty it has to explain how and why wages and salaries currently makes up $6.4 million of the $7.6 million increase in proposed 2012 budget There is a challenge in discussing specifics of wages/salaries budgeted for 2012 when four out of five union contracts handled by the city are open in 2012

What Makes up the 2012 Change in Salaries?2011 Salaries Budget $39.9mm2012 Salaries Budget $46.3mmNet Change in Salaries is $6.4mmChange Drivers: $1.0mm - New Positions $1.0mm - Collective Agreement Increases $700k – Increased Casual Labour $600k – Pay Administration Review $530k – Step Change Increases $910k – Changes in Roles, Persons, or Allocations $430k – Miscellaneous $1.2mm - Changes in Estimates

Salaries & Benefits Costs – New Positions$1.0 Million Overall Change $430k - Eight new Clerical Front Desk Attendants for Brandon Police Service  As part of an internal labour settlement, the Brandon Police Service will see eight new Clerical Front Desk Attendant positions created, freeing police officers up to spend more time on the streets rather than caught up in paperwork, etc. $570k for 7.5 positions deemed critical for City Operations  Policy Analyst – focus will be on updating and implementing policy and procedures organization-wide  Director of Planning; additional Building Inspector; and Community Planner– needed to meet the aggressive and growing demand from developers  Director of Communications – Necessity for a city the size of Brandon to have a dedicated person in this role  Deputy Director of Human Resources – Needed to meet the growing needs and challenges of the city’s growing workforce. Note, this position has been filled internally and the successful candidate’s former position will be frozen pending review.  Financial Analyst – position dedicated to finding new and alternative sources of revenue to help grow the city and seek out efficiencies  Half-time payroll position for Brandon Fire & Emergency Services – Previously, one full- time employee handled payroll for all protective services (Fire and Police) , workload was too great

Salaries – Collective Agreement Increases$1.0 Million Overall Change Represents the estimated labour cost increases associated with the settlement of four outstanding collective agreements.  Fire  E-911 / Police Dispatch  Police  Transit Comparables for protective services are part of arbitrated settlements for many years.Going Forward: It is our desire to stagger future collective agreements so that multiple agreements do not come due in the same year.

Salaries – Casual Labour $700k Overall ChangeGoing Forward: Casual labour is currently under review. Some of this labour was not budgeted in 2011. The remainder is under review to ensure that an appropriate amount of labour is being budgeted for 2012. Due to the 2011 High Water Event, a lot of the casual labour was allocated to flood duty and then not utilized in their actual departments. As such, comparisons between 2011 actuals and 2012 needs are very difficult.

Salaries – Pay Administration Review $600K Change History of Non-Union Pay Administration program covering 2005 – 2010  Intended to pay at 50% of the comparator centers average annually  2005 – paid at 50% of the comparator centers average  2006 – paid at 50% rolled average of the three previous years (33.3% weight each year)  2007 to 2009 – paid at 50% rolled average of the three previous years weighted at 50%-30%-20% respectively  In 2007, 48% were paid below the rolled average and this had increased to 79% by 2009  Lacked transparency, difficulty recruiting qualified individuals, and resulted in internal inequities  2010 saw an across the board increase of 3% while new program was being developed Non-union pay administration program rolled out in 2011  Addresses matters of transparency, fairness, and equity  Uses consistent comparator centers, including: Lethbridge, Medicine Hat, Red Deer, St. Albert, Regina, Saskatoon, Moose Jaw, Prince Albert, Winnipeg, and the Province of Manitoba  Targets the 50th percentile of the comparator centers using available relevant position comparisons  The median increase was 12% paid retroactively to January 1, 2011  Represents pay adjustments for 67 non unionized out-of-scope positions.  No bonuses were paid to any non-unionized employees Going forward  The pay administration program is now established and will serve us long term so that future administrations will not have to go through this process  Gives stability to our out-of-scope workforce

Salaries – Step Changes$530k Overall Change Represents adjustments for individuals moving into a higher level within their union, e.g., Police Constable to Police Sergeant. The City has an aging workforce, many individuals have been here in excess of their “rule of 80”.Going Forward: Vacancy management as part of a comprehensive payroll management strategy will be very imperative. Many individuals are expected to retire within the next three years.

Salaries – Changes in Roles, Persons, or Allocations$910k Overall Change $67k – Filling of a mat leave. $73k – Filling of vacant Police positions. $60k – Filling of a secondment. $160k – Filling of vacant Fleet Manager and two Equipment Technicians. $127k – Filling of vacant Transit Supervisor and Maintenance Positions. $139k – Filling of vacant CDC Manager and CDC Coordinator Positions. $142k – Replacement of a former IT Manager and conversion of two temporary employees to full-time. $75k – Miscellaneous changes.Going Forward: Vacancy management as part of a comprehensive payroll management strategy will be very imperative. Many individuals are expected to retire within the next three years. Note, the Deputy Director of HR’s position has been filled internally and the successful candidate’s former position will be frozen pending review.

Salaries – Miscellaneous$430k Overall Change $83k – Succession Planning Initiatives. $54k – Increase in shift differential costs. $58k – Increase in acting pay. $120k – Increased allocations to Public Works, Landfill, & Recycling Operations. $115k - OtherGoing Forward: Vacancy management as part of a comprehensive payroll management strategy will be very imperative. Many individuals are expected to retire within the next three years.

Salaries – Changes in Estimates$1.2 Million Overall ChangeThese represent accounting changes in estimates, changes in process, and/or changes ininternal charge out rates. $200k – Increase in Workers Compensation (WBC) Rates $50k – Increase in other employer paid benefits $250k – Underestimate of Police Salaries in 2011. $200k – Increase in internal charge out rates for garage $450k – Under budgeting in other salary areas and/or misallocation of labour related to the high water event.Going Forward: A plan is being developed to reduce WCB costs. All salaries will be budgeted for using salaries software, all Department Heads will be trained in Salaries Software.

Salary Cost Comparative DataSalary Comparison Population 1st class Director of City Senior 1st Class City Clerk Director of Snapshot Police Parks and Manager Planner Firefighter Finance Officer RecreationBrandon 41,511 $ 75,749 $ 107,636 $ 177,284 $ 74,528 $ 69,036 $ 105,202 $ 103,688Moose Jaw 32,132 $ 59,034 $ 83,808 $ 102,522 n/a $ 55,758 $ 83,808 $ 83,808Prince Albert 34,138 $ 80,693 $ 151,547 $ 172,639 $ 76,014 $ 65,880 $ 85,167 $ 109,617Medicine Hat 56,997 $ 87,393 $ 132,150 $ 206,000 n/a $ 80,764 $ 115,450 $ 149,050Lethbridge 74,637 $ 86,154 $ 144,131 $ 274,150 n/a $ 80,502 $ 115,305 $ 144,131Average 47,883 $ 77,805 $ 123,854 $ 186,519 $ 75,271 $ 70,726 $ 100,986 $ 118,059*Population based on 2006 Census Data**Brandon 2011 Salary Data Vs. 2010 Comparisons

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Proposed 2012 Budget - Salaries and Wages

by City Brandon on Jan 24, 2012

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Proposed 2012 Budget - Salaries and Wages — Presentation Transcript