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HomeMy WebLinkAbout3. Budget DiscussionTO: Mayor McMenomy Councilmembers: Klassen Staats Willcox ITEI Wippermann From: Stephan Jilk cr RE: Special Council Meeting - ctober 27, 1992 Budget and Salary Dis On Tuesday evening you will continue discussion operating, capital improvement, debt service budgets benefits for employees. In preparation for that prepared the responses to the questions brought by Mi other representatives of his citizens group. Co responses have been provided to Mr. Sinwell on Frida as promised. Copies of those responses are also in packet for your review. sion on the 1993 and salary and discussion I Sinnwell and dies of these y at City Hall eluded in this Councilmember Willcox has also provided a memo, enc oar for your information, outlining items he wishes to discuss on Tuesday. I will be pleased to respond to Mr. Willcoxsl comments at the meeting. In regard to the salary and. benefit 'discussion Ii would offer additional information. I have had input from legal counsel on the mattei which certain members of the city staff are consi( that affects your consideration of salary and benef is the opinion of legal counsel that by the receipt provided to you on October 20th, in this matter continue to discuss these matters but, as they relate employees now represented by Unions and those n( representation, no implementation of such changes i without going through the bargaining process. I w: with a labor relations specialist on Tuesday to disci and I am in contact with the Bureau of Mediation also. I have also received a copy of the Minnesota State Av completed in March of this year on "Local Governmen The complete document is available from the Auditor have a complete report for anyones review. I have c of the report which I hope will be of some va.1 discussing the Salary and Benefits issue. The Exe section does a good job of discussing the concerns public arena which brought about the study and the study. I believe the issues surrounding the study a the kind of concerns brought by the Citizens and - believe the relevence of this report and the 1 presented to our discussions are clear and I hope yc of the union ering and how -t changes. it of the notice Council may to any of the w considering Lay take place 11 be meeting ss this matter on the matter ditors report, : Salaries". 3 office and I Dpied sections ue to you in ,utive Summary raised in the results of the re relevent to ,ourselves. I acommendations u consider the information in the report before moving on any salary and benefits change decision. I don't believe an across the board freeze in salaries is a good idea. As the report suggests I would recommend that we do a thorough analysis of the ways budgets can be reduced, services maintained and taxes kept to an acceptable level. As far as taxes go I happen to believe that we are already doing this. To make a decision to simply freeze salaries, which cannot be done across the board without the agreement of the employees represented by Unions, without doing a thorough analysis of the individual positions, would be mistake. I have budgeted, in the 1993 budget, $7500.__to complete the comparable worth study and do a complete analysis of Job descriptions, job responsiblities and salary/benefits for city employees. The very thing that the State Auditors Report suggests in dealing with this concern is what I had in mind in having done in 1993. I would ask that you not take any action on wage freezes, wage reductions, benefits reductions or matters of that nature until you conduct such an analysis. On the matter of cost of services/cost of government, I thought it would be a good idea to look at some information provide by the private sector. I have attached a copy of a report put together by the Citizens League, and distributed by a local real estate firm. This report ranks cities by the tax on an average home and how it compares to the homes value. According to the real estae firm this is the "best bottom line picture of property taxes paid". According to that report Rosemount ranks 71 out of 95. With a 1 ranking being the worst and 95 being the best. This was based on 1991 taxes paid and the city has come up in the rankings for 1992. Thatis, our ranking is not quite as good but we are still in the lower half of the rankings. This seems to be the ultimate cost benefit analysis of our use of tax payers dollars. I think that these kinds of factors must be kept in mind as you move ahead on budget considerations. In the matter of budget format and how it relates to the "management" of the citys' operation I have asked Mr. Roger Schauness, of the Auditing firm of Boekermann and Heinnen, our city auditors to be present at the meeting to make comments as to how the city presents its' budget and how that format is utilized in their audit of the city and from an accounting and management control standpoint. Since these are the people that must insure that the city is doing things right in this matter I thought that his insight and comments would be relative. I will also have available information on interim budget reports that the Finance department can provide in the future which may assist you in following the budget and giving you a better handle on the status of the budget during the year. Finally, I would ask you to consider that we must move ahead to further define the rest of the budget so that we can prepare for final budget adoption in December. Though the budget can be amended after the first of January it would be best to have the budget resolved by the December public hearing. The amount of work and potential for miscommunication is greater if the budget goes unresolved after the year end. We should get on with clear and focussed budget discussion. Responses On City Budget Questions The following are the questions that the Taxpayers fore Responsible Budget are requesting that the City Council answer in whiting by Friday the 16th of October. It was agreed on at the October 13, 1992 council meeting to respond by Friday, October 23, 1992. 1. Why is FICA and Medicaid listed as a benefit? The auditors for the City of Rosemount responded, "The amounts that are listed under expenditures for FICA and Medicare as benefits are the City's matching portion of these amounts. They are effectively a tax or forced retirement contribution to the federal government which should benefit the employee when they become eligible for it (typically age 65). It is the same as the contribution private businesses have to make and is almost always listed under the categories "employee benefits" or "taxes"." 2. What is longevity, longevity change? How are they figured and what is the criteria for them? Longevity is an amount of money added to an employees' salary. Longevity pay is based on a percentage of the employees,, base salary and is included, once earned, on the employee's bi-weekly paycheck. Longevity is earned by an employee based on the number 'of years employed, without interruption, with the City. The percentage of longevity paid or earned varies depending on whether the employee is union represented or not. That is, the percentage of longevity paid or earned ranges from to of base salary to 5t of base salary. At present all non-union employees can receive no more than 4s longevity pay. Employee Example - Receives a base salary of $30,000 X employee started working for the City on July 1, 1986. not represented by either of the two unions represents employees. Non -Union longevity pay is to be paid as follows: to after 5 years 2% after 8 years 3%r after 12 years 4% after 16 years On July 1, 1991, the employee begins receiving a 1% loi is calculated as follows: $30,000 X to = $300 per yeas paychecks received each year the employees longevity p< July 1, 1991, will be $11.54 per check. 1 year. The The employee is City igevity pay. It Based on 26 Ly, beginning On January 1, 1992, the employee receives a 20-. salary increase in his base salary. His new base salary, $30,000 + 20 = $30,600. Since the longevity is based upon the employees base salary, the longevity pay will increase. The new longevity pay, still to of base salary is $30,600 x 1% _ $306 per year. On a bi-weekly paycheck the employees longevity pay equals $306 divided by 26 weeks which is $11.77 per check. On July 1, 1994, the employee completes eight years of service with the City. The employee now reaches the 2% longevity pay level. We will assume, for simplicity sake, that the employee's base salary is still $30,600. This is unlikely because eight years have passed, but for calculation sake we will assume it to be $30,600. On July 1, 1994 the employee's longevity pay will equal $30,600 x 2% _ $617 per year. On a 26 bi-weekly pay check the employee would now receive $612 divided by 26 which equals $23.54 per check for longevity. To calculate the total amount of longevity pay actually received in 1994 you would take six months longevity pay (January to June) [$306 _ 12 x 6 = $1531 and add it to the second six months longevity pay at the new rate; $612 _ 12 x 6 = $306. Total pay for longevity in 1994 equals $153 + $306 = $461. The payment of longevity is simply based on time employed with the City. This benefit is part of a package of benefits reviewed annually by the City Council and approved annually in a resolution adopted by the Council. Union employees longevity pay is established and set out in the Union Contracts as approved by the Council. 3. What is a merit raise? The criteria and how are they figured? A merit raise is an adjustment to the employee's base pay. Only non- union employees can be granted merit increases. Merit increases are given to an employee based upon performance of his/her responsibilities in a manner which, in the estimation of his/her supervisor and the City Administrator, reflects a performance deserving a merit increase. There are no specifically defined outlined criteria for granting a merit increase. Recommendation by a supervisor or in the case of a department head, the City Administrator, will be the basis for a merit increase. In the last five years there have been through the authority given to the City Administration Policy and one given to City Council in 1991. 2 five merit increases given, Administrator by the Salary the City Administrator by the 4. When was the last time each staff member received a review and by whom? All non-union employees are to be reviewed on an annualbasis by their supervisor. We attempt to conduct performance evaluations regularly in order to utilize the evaluation as a communication tool',between the employee and his/her supervisor. As employees are hired and/or promoted to a new position with the City they are evaluated to determine whether or not they can pass a six month probationary period and are to be retained as a niew employee or retained in a position to which they are promoted. Based on these performance evaluations some employees have been kept on probation for an additional six months and remained at starting salary. In the last 4 years two full time employees were not given continuZd employment due to continuing unsatisfactory performance evaluations. When an employee receives his/her evaluation depends on when they were hired. We attempt to complete evaluations on an employee's anniversary date of hire once they complete a probationary period— The anniversary date should be the last time an employee received an evaluation. Supervisors are encouraged to utilize evaluations at other times besides the anniversary date if they feel it is appropriate in communicating issues of an employee's performance. S. The Council has $6,000 in their budget for educational expense. What educational courses do our elected officials attend? The City has an "education reimbursement" program for certain employees. This program, as set out in the Education Reimbursement Policy and approved each year in the resolution approving the benefits to be received by non-union employees calls for reimbursement of costs for classes taken and successfully completed by an employee, up to a certain level of cost. The amount budgeted for these costs are budgeted in the City Council's line item budget. The amount budgeted is based upon the maximum to be paid for each employee and for those employees expecting to complete 'classes in the upcoming year. The classes for which an employee can receive reimbursement for must be classes which individually or as part of a degree program can be assumed to relate to the employees service with the City. 6. Are salaries always allocated to their respective departments? i.e. City street snow plowing by Parks and Recreation Department employees? At this point in time, we do not utilize labor distribution for our employees. By this, I mean that each employee's costs'',(salaries and benefits) are pre -allocated to either one department or a combination of two or more departments or funds. If an employee works for the 3 r Parks & Recreation department, that employee's salaries and benefits are allocated to that department even though he or she may perform work for other departments or other funds (water, sewer, etc.). Our old software system did not have the capabilities to handle labor distribution and our new software system could possibly handle labor distribution, but with our personnel restrictions, it is not a viable option at this point. To staff's credit, we have always been able to work together to ensure that all of the tasks that need to be completed are done. If this has meant sharing staff with other departments, then that is the course of action that has been taken. I do not feel that this is a detriment to the accounting practices or the department accountability for expenditures, but rather, a tribute to the ability of a group of people working together to reach a common goal, that being to provide the services to the citizens of Rosemount that they deserve and demand. 7. Where did the money come from to revive Tiny Tots? Two main factors were involved in the cancellation of the original schedule of the Tiny Tot Program. They included a low registration of participants and a drastic increase in the rental fees of the meeting room at St. John's church. Information was received by Parks & Recreation staff from the representative of St. John's church that the rental fee for the meeting room for Tiny Tots was being increased by $2,300. That amounted to an increase of $23.40 per day of use. A letter was sent to church officials regarding the operation of the program. This letter did relate to the past "joint offering" as well as the present operation solely by the City of Rosemount. Parks & Recreation staff spoke with Pastor Hall and indicated to him that our department did understand that they now had costs that meant they could no longer jointly offer the program. Staff decided to look for ways to find alternative funding to continue to offer the program at the church until the armory opened up. The original registration fee was $55 per participant. That was based upon an average of 17 participants per program time slot offered. That amount would cover all program costs as well as two supervisors. NOTE: The average number. per program time slot registered was 10. In an attempt to continue the program the Recreation staff did research the use of the fire hall as an alternative site. Also, the Dakota County HRA facility center was considered, but it was a small area and turned out not to be available for use when checked into. Staff presented this issue to the Parks & Recreation Committee to obtain their support in continuing the program. Strong support was given for staff to find ways to fund the program's additional rental costs. 4 In an effort to revive the program staff set a program participation fee of $65. This would cover the $2,300 increase for rental as well as other program costs. The minimum number of participants per program time slot was revised to an average of ten per program time slot for a break even point. The offering of the program at this time will be dep number of participants registering for the program. NOTE: The question of the use of other revenue funds of the budget for use in the program was considered. ' registration was as low as indicated at the start of t: support was given by the Parks & Recreation Committee this program, consideration of these revenue accounts given. It should be kept in mind that dollars are not Revenue of the City in excess of the dollars allocated program or project go back into the City reserves. 8. How is a movement in range figured? Why are they s cases? Movement of an employee through his/her salary range filled is based on one of the following: t upon the this portion en the memo and . when r subsidizing llars was pent at random. o conduct a large in some the position A. A hiring agreement proposed by the City at the time',of employment and satisfactory performance B. An agreement proposed by the City at the time of a promotion of the employee to a new position C. Granting of a merit increase D. Change in the Comparable Worth Point Value of a position, which in a sense creates a new salary range for an employee causing the employee's present level in a range to be adjusted The single greatest increase caused to an employee's salary is due to hiring or promotional agreements entered into by the City. 9. The voter election judges are treated as city employees. The referees for the Parks and Recreation department are not. Why? The City auditors replied, "Election judges are hired. directly on an individual basis to perform "employee -1 the City. Referees are hired by the Eagan/Rosemount U Association, which contracts services out to cities. hired or paid by the City on an individual basis to pe the City. They are similar to professional services s attorneys, plumbers, etc. that work for their own orga company and do work at the City. Those organizations write their pay checks and treat them as their employe the association handles disbursements to its members i of the City. 5 )y the City Lke" services to npires [hey are not :form work for zch as engineers, Azation or ind companies a." Also, how not the concern 10. Is the revenue from the Parks and Recreation department a wash with their expenses? If so, how come Tiny Tots was dropped? Please refer to the comments made to question 'seven. 11. Why are there two merit raises for some employees, one for others and still none for others? In the 1993 Operating Budget there are no merit increases proposed. The increases that are proposed fall into one or more of the following areas: A. 3t cost of living adjustment B. Movement within the employee's salary range due to a previously approved movement due to a hiring or promotion agreement C. A proposed promotion D. A proposed change in the employees position Comparable Worth Point Value E. A change in longevity The reason why an employee is proposed to get a greater increase may be because the employee is working through an agreed upon employment or promotion process. 12. What type of review has been completed by our elected officials on this budget? The City Council has had meetings to discuss the Preliminary Operating and Capital Improvement Budgets for 1993. The Council received the preliminary budget on August 7, 1992 and met on August 11, 1992 for the first time to discuss the budgets. The Council then met again on August 25, 1992 to discuss the budgets. On September 9, 1992 the Council adopted a resolution adopting the preliminary budgets and the Preliminary 1993 Levy. On October 13, 1992 the Council met to discuss wage freezes and concerns brought by a citizens group about budget format, alleged errors in the budgeting process and procedure on how salaries and benefits are calculated. M CITY OF ROSEMOUNT POLICY TITLE: POLICY NUMBER: PROPOSED BY: DATE APPROVED BY COUNCIL: DATE AMENDED BY COUNCIL: TUITION REIMBURSEMENT PROGRAM PE - 1 ADMINISTRATION FEBRUARY 9, 1989 DECEMBER 3, 1991 PURPOSE The City of Rosemount encourages its employees to improve their skills -.and knowledge through education. To assist employees in attaining personal education and career goals, the City offers the following tuition reimbursement program to eligible employees: This program is intended for the voluntary use of employees to encourage achievement of personal goals, and is not intended to address employer requested or required classes, seminars, or programs. Eligibility for the reimbursement program shall be based on the following criteria. I. ELIGIBILITY I. a. Regular full-time, non-union employees and union employees eligible through approved labor agreement, upon successful completion of their initial probationary period with the City, or as ',individually agreed, shall be eligible to apply for reimbursement of job-related educational courses under the City's Tuition Reimbursement Program. b. This program is voluntary, and as such all course work shall be completed outside normal working hours. C. In order to be considered for tuition reimbursement, the course or degree program, must be directly related to the employee's current job or to a position to which the employee could be directly promoted within the City. d. Tuition reimbursement shall be considered only for course work taken at recognized accredited colleges, vocational schools, or approved adult educational programs. e. Tuition Reimbursement forms are available from the Personnel Office. II. APPROVAL II. a. In order to be eligible for tuition reimbursement, all requests for course work or a degree program must receive prior approval from the employee's department head and the city administrator. III. REIMBURSEMENT III. a. Upon successful completion of a pre -approved educational course, the City shall reimburse the employee for 100 percent of the course tuition and other associated fees, necessary textbooks, and materials. Expenses for which the employee could be compensated through other educational incentive programs such as the GI Bill will not be covered. The City will pay 100 percent of all costs of taking a class not to exceed $750 a year for classes approved by Administration and successfully completed. The City will also pay 50 percent of costs above the initial $750 for classes approved by Administration and successfully completed. b. Successful completion of the course shall be considered: 1. A letter grade of "C" or better, or; 2. A numerical grade of 1170" or better, or; 3. A pass in a Pass/No Pass System, or; 4. A certificate from the instructor indicating satisfactory completion of the course if grades are not issued. C. Financial reimbursement will be granted after the following conditions have been met: 1. The employee has received prior approval under the Tuition Reimbursement Program. 2. The employee has completed the course and submitted proof of successful completion of the course to their department head. 3. The employee has submitted proof of payment for the course to their department head. CITY OF ROSEMOUNT POLICY TITLE: POLICY NUMBER: SALARY ADJUSTMENT POLICY - NON-UNION PE - 3 PROPOSED BY: ADMINISTRATION DATE APPROVED BY COUNCIL: DECEMBER 5, 1989 PURPOSE The City of Rosemount values its employees and finds it maintain a credible method by which employees can expect maintain salary levels within the city's salary structui will determine a consistent method by which an employee and how an employee's salary may be adjusted from time 1 the employee to advance within the salary range for the employee holds. EMPLOYEES necessary to to gain and .,e. This policy s salary is set ;o time allowing position the I. The City Council of Rosemount has established a certain salary compensation schedule which is updated on an annual basis to reflect changes in position requirements and compensation value for those positions. (The current schedule is attached for reference to this policy.) Ii. Employees may be hired anywhere within the salar a for the Y Yran g position they will fill at the discretion of the City Council based upon recommendation by city administration.' III. Salary adjustments can be made based on two criteria: (1) annual cost of living adjustments, or other factors such'as comparable worth which affect the salary range the employee is in; and (2) adjustments to the specific employee's salary due''to movement within the range. IV. It is envisioned that the middle of the salary range will maintain an "average" salary for positions for cities the size of Rosemount and for positions with similar duties and responsibilities. In order for an._employee to reach that "average", he/she should exhibit "at least" average experience and capabilities.' It is further assumed that to qualify in meeting the experience factor, an employee should have at least one year in -the position currently assigned. Movement through the salary range will also be determined by satisfactory performance evaluations completed by the employee's supervisor. V. Movement of employees to salary levels along the range to points not specifically coinciding with mid and top points is satisfactory and will be determined by the employee's supervisor and the approval of the city administrator under ]budgeting t SALARY ADJUSTMENT POLICY - NON-UNION EMPLOYEES PE - 3 Page 2 guidelines determined and approved by City Council. VI. Unsatisfactory performance evaluation by the employee's supervisor will be the basis for holding an employee back from potential movement in the salary schedule and/or annual adjustments to the position's salary range. 1989 -Mm. fnr ANAL 1990 A Rmg-- B Fbnge C zmrft SB TFM PIS PJUE :118 :52,840 54-5160 47114.94 49,595 57204.92 52205.92 54,954 57701.28 57702.26 60,587 63616.76 PWEEV G :105 :45,560 47382.40 40223.58 42,762 45012.28 45013.2E 47,382 49751.52 45152.52 52,240 54852.15 CT.244 iM EER :1001 :44,683 46470.32 39641.59 41,939 44145.80 44146.80 46,470 48793.84 48794.84 51,235 53796.31 PC[ CIIF :101 :43,805 45557.20 39058.70 41,114 43278.34 43279.34 45,557 47835.06 47836.06 50,228 -2739.26 :100 :43,365 45100.64 38067.26 40,702 42944.61 42545.61 45,101 47355.67 47356.67 49,725 52210.73 P & R aR : 99 :42,875 44590.00 38229.45 40,242 42359.50 42360.50 44,590 46819.50 46820.50 49,162 51619.60 NA241EK FFM : 94 :37,296 38881.08 3934.76 35,089 306936.03 36937.03 38,881 40825.13 40826.13 42,867 45710.81 MM UF=L : 94 :37,296 38881.08 33334.76 35,089 36936.03 36937.03 38,881 4083.13 40826.13 42,867 45010.81 P= IT : 94 :37,296 38881.08 33334.76 35,089 36936.03 36937.03 38,861 40825.13 40826.13 42,867 45010.81 CIS alVAAAM: 88 :33,500 34923.75 29941.85 31,518 33176.56 33177.56 34,924 36669.94 36670.94 38,504 40429.71 DEp. Firu Ear.: 88 :33,500 34923.75 29941.85 31,518 33176.56 33177.56 34,924 36569.94 36670.94 38,504 40429.71 p2amw : 85 :32,318 33691.51 28885.36 30,406 32005.94 32006.94 33,692 35376.09 35377.09 37,146 39003.24 ASST. rm rmL: 8D :30,218 31502.26 27008.35 28,430 29926.15 29927.15 31,502 33077.38 33078.38 34,732 36468.91 R= Sar : 78 :35,545 37055.66 31769.70 33,442 35201.88 35202.88 37,056 38908.45 38909.45 40,855 42897.65 ASST XXM : 75 :28,301 29503.79 25294.99 26,625 28027.60 28028.60 241504 30978.98• 30979.98 32,529 34155.43 NM Il3 = : 75 :28,3D1 29503.79 25294.91 26,626 28027.60 28028.625 29,504 30978.98 30979.98 32,529 34155.43 CD CCK 75 :25,301 29303.79 25294.91 26,625 28021.60 28028.60 29,504 30978.98 30979.98 32,529 34155.43 B rL Dw.Sh • T :28,3D1 29503.79 25294.91 26,626 29027.60 28028.60 29,504 30978.98 30979.98 32,529 34155.43 AL Ast.-aLm 71 :27,105 28256.96 24225.91 25,501 26843.11 26844.11 28,251 29669.81 29670.81 31,154 32712.07 Rmamll : e :28,961 30213.74 25903.60 27,267 28'101.2.05 28703.05 30,214 31724.42 31725.42 33,312 34.977.28 1 gC5 : 65 :26,063 27170.68 23294.56 24,521 25811.14 25812.14 27,171 28529.21 2890.21 29,957 31454.56 >'M SEM : 60 :23,978 24997.06 21430.96 22,559 23746.21 23747.21 24,997 26246.92 25247.92 27,560 28938.33 SKY/1W/ZN : 6D :23,978 24997.06 21430.96 72,559 23746.21 23747.21 24,997 25246.92 26247.92 27,560 2MB.33 M : 57 :26,489 27425.00 23512.61 24,750 26052.75 26053.75 27,425 26796.25 28797.25 30,237 31748.57 .26,489 ___ -WMV = : -57 • -- 274.80 _ - -235I-2.61 24,7 _26052.75 __ __ 26853.75__ 27,E 28`196.25 25/97.25 30,237 .31748.x! RUG MV : 53 :2D,588 21462.99 18400.93 19,359 20388.84 20389.34 21,463 X2536.14 71537.14 23,664 24847.2 Pal Sa:y : 53 :20,58B 21462.99 18400.93 19,369 20388.84 20389.84 21,463 2296.14 22537.14 23,664 24847.20 ASSI' EEP 1M : 53 :20,588 21462.99 18400.93 19,.358 20388.84 20389.84 21,463 22536.14 22537.14 23,664 24847.20 MOW= 31 : 53 :25,314 26208.00 22469.18 23,652 24896.60 24897.60 26,208 27518.40 27519.40 28,895 30340.14 MW II : 53 :25,314 2=8.00 22469.18 23,652 24896.60 24897.60 26,208 27518.40 21519.40 28,895 30340.14 N1:" -N= I : 51 :17,825 18544.00 15898.26 16,735 17615.80 17616.80 18,544 19471.20 19472.20 20,446 21458.10 mkw I : 51 :17,825 16544.00 15898.25 16,735 17615.83 17616.80 18,544 19471.20 19472.20 20,446 21468.10 1MJ 5E : 50 :19,681 205517.44 17590.24 18,516 19490.7 19491.57 20,517 21343.31 21544.31 22,622 ZTISL61 Pt1Q= SM. 50 :19,631 20517.44 17590.24 18,516 19490.57 19491.57 20,517 21543.31 21544.31 22,622 23752.61 19307mils". : 46 :18,571 19360.27 16598.11 17,472 19391.25 18392.25 19,36D 20328.28 20329.28 Zt,346 22413.03 xumbt : 46 :18,571 19360.27 1698.11 17,472 18391.25 18392.25 19,360 20328.28 20329.28 21,346 22413.03 CITY OF ROSEMOUNT POLICY TITLE: PROCEDURE FOR PAYROLL AND BENEFIT CHANGES POLICY NUMBER: PE - 4 PROPOSED BY: ADMINISTRATION DATE APPROVED BY CITY COUNCIL: JULY 17, 1990 PURPOSE This procedure will provide an efficient and consistent method for making adjustments to all city employees' payroll records with regards to salary and benefit changes. These changes will be initiated and approved according to the following documents in effect at the time of a change: Salary Adjustment Policy for Non -Union Employees, Salary Compensation Schedule for Non -Union Employees, Resolution Outlining Non -Union Full -Time Staff Salary and Benefits, Labor Agreement between the City of Rosemount and Law Enforcement Labor Services, Inc. and Labor Agreement between the City of Rosemount and Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320. I. The City Clerk will keep up-to-date and accurate payroll records for all city employees. A. Records will include: (1) Present salary of employee and when scheduled .,:salary increases should occur. (2) Anniversary dates of employees/years of service. (3) Vacation rates and when changes in earned rates will occur depending upon employee's anniversary date and the above -referenced documents. (4) Vacation maximum accrual amounts and when maximum amounts would change based upon employee's anniversary date and the above -referenced documents. (5) Longevity percentage rates and when salary adjustments would occur based upon employee's anniversary date and the above -referenced documents. Procedure for Payroll and Benefit Changes Policy Number PE - 4 Page 2 B. Salary increases will be effective for the '',pay period within which employee's anniversary date occurs. For example, when employee's anniversary date falls in the middle of a two-week pay period, all salary increases will be effective for the entire pay period. This also includes salary increases because of longevity rate changes. C. Vacation rate increases occur the second pay period of the month. If the employee's anniversary date occurs after the second pay period, the vacation rate change will occur the second pay period of the following month.FAI D. Vacation accrual maximums will be changed on the employee's anniversary date. II. The City Clerk will initiate a Payroll/Benefit',Change Form for all new full-time,and part-time employees.' III. The City Clerk and Department Meads or Supervisors will meet prior to the new employee start date to insure that the Payroll Department has the appropriate salary and benefit information for all new employees in a timely manner. IV. The City Clerk will initiate any changes in payroll status of all employees. This will consist of the following changes: A. Salary changes B. Longevity changes C. Vacation Rates D. Vacation accrual maximum amount V. The City Clerk will fill out the Payroll/Benefit Change Form one month in advance of any scheduled change and forward to employee's department head for review. Department head will sign and date form authorizing change. If e;nployee is a department head, form will be forwarded to the Administrator for review and signature. VI. Department head, after signing form, will forward to City Administrator for approval. VII. City Administrator, after signing form, will forward to City Clerk. City Clerk will copy form to employee and forward the original form to payroll department. VIII. Procedure will be conducted in a timely manner so the payroll department has the change form two weeks prior to effective date of change. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1991 - 78 A RESOLUTION OUTLINING NON-UNION FULL TIME STAFF SALARY AND BENEFITS FOR 1992 WHEREAS, the City Council of the City of Rosemount''has reviewed certain salary and benefit adjustments for the none -union full- time city staff; and WHEREAS, the City Administrator has provided supporting information as to recommending salary and benefits adjustments for 1992; and WHEREAS, the City Council has reviewed a proposed policy for implementing annual adjustments and employment step adjustments in 1992 and beyond (this policy is attached as Exhibit "A") along with implementing other benefit changes as proposed by city administration; and WHEREAS, the City Council of the City of Rosemount, feels it is appropriate to institute such recommended changes.', NOW THEREFORE BE IT RESOLVED, that the salary ran set for all non-union positions as set out in Exh resolution, which salary schedule will be impleme in the Salary Adjustment Policy (Exhibit "A" to t and that the following benefit schedule be adopte union city staff and will become effective Januar A. Holidays 1. New Years Day 7. Columbus D 2. Martin Luther King Day 8. Veterans D 3. Presidents Day 9. Thanksgivi 4. Memorial Day 10. Friday fol 5. Independence Day Thanksgivi 6. Labor Day 11. Christmas s are to be it "B" to this ed as set out s resolution), for all non - 1, 1992: y g Day owing g ay B. Vacation: Vacation shall be earned by non-union full-time staff monthly per the following schedule, beginning January 1, 1992: 1st year of employment .67 day/m 2nd thru 3rd yr of employment 1 day/mo 4th thru 10th year of employment 1 , days/ 11th thru 15th yr of employment 1 3/4 day 16 and above yrs of employment 2 days/mo (8 days) (12 days) no (18 days) r,/mo (21 days) (24 days) Resolution 1991 - 78 Page 3 G. Lonccevity: After 5 years of service, 1% of base After 8 years of service, 2% of base After 12 years of service, 3% of base After 16 years of service, 4% of base H. Health Insurance: Cost of Basic Plan (1st dollar) - 100% of employees coverage - 65% of the difference between single employee coverage and the total family coverage. The cost difference between the basic (1st dollar) plan and any optional plans available to employees, will be paid by the employee. I. Life Insurance: The city will pay the cost of: 1. $10,000 Term Life Insurance (Minnesota Mutual Life) 2. Declining value PERA Life Insurance Plan Any additional life insurance costs for optional plans available to the employee will be born by the employee. J. Dental Insurance: The city will pay the cost of single coverage through a plan approved by the city (1992 cost of $18.20 through Delta Dental Plan). Employee pays any additional cost for employee or dependents. G. Education Reimbursement: The City will pay 100% of all costs of taking a class not to exceed $750 a year for classes approved by Administration and successfully completed. The City will also pay 500 of costs above the initial $750 for classes approved by Administration and successfully completed. Adopted this 3rd day of December, 1991. ATTEST: \ i Susan M. Walsh, City Clerk Motion by: Napper Ve n J Na er, Mayor Seconded by: Klassen Voted in favor: Willcox, Wippermann, Napper, Klassen Oxborough Voted against: None • EXHIBIT "A" , CITY OF ROSEMOUNT POLICY TITLE: SALARY ADJUSTMENT POLICY - NON-UNIOiN EMPLOYEES POLICY NUMBER: PE - 3 PROPOSED BY: ADMINISTRATION i. DATE APPROVED BY COUNCIL: DECEMBER 5, 1989 The City of Rosemount values its employees and finds it necessary to maintain a credible method by which employees can expect to gain and maintain salary levels within the city's salary structure. This -policy will determine a consistent method by which an employee's salary is set and how an employee's salary may be adjusted from time to time allowing the employee to advance within the salary range for the position the employee holds. I. The City Council of Rosemount has established a certain salary compensation schedule which is updated on an annual basis to reflect changes in position requirements and compensation value for those positions. (The current schedule is attached for reference to this policy.) II. Employees may be hired anywhere within the salary range for the position they will fill at the discretion of the City Council based upon recommendation by city administration. III. Salary adjustments can be made based on two criteria: (1) annual cost of living adjustments, or other factors such as comparable worth which affect the salary range the employee is in; and (2) adjustments to the specific employee's salary due to movement within the range. IV. It is envisioned that the middle of the salary Lange will maintain an "average" salary for positions for cities the size of Rosemount and-ior positions with similar`duties'and responsibilities. In order for an employee to reach that "average", he/she should exhibit "at least" average experience and capabilities. It is further assumed that to qualify in meeting the experience factor, an employee should have at least one year in -the position currently assigned. Movement through the salary range will also be determined by satisfactory performance evaluations completed by the employee's supervisor. V. Movement. of employees to salary levels ?long the range to points not specifically coinciding with mid and top points is satisfactory and will be determined by the employee's supervisor and the approval of the city administrator under budgeting EXHIBIT "A" SALARY ADJUSTMENT POLICY - NON-UNION EMPLOYEES PE - 3 Page 2 guidelines determined and approved by City Council. VI. Unsatisfactory performance evaluation by the employee's supervisor will be the basis for holding an employee back from potential movement in the salary schedule and/or annual adjustments to the position's salary range. bo 1991 adjust NIIIPr. fccr PRIM 1992 A }brrp B RxW C ra'- JCB TME PIS ME 1.0400 1.0400 _ :118 : 57,289 59580,70 51082.10 53,771 56600.66 56601.66 59,581 62559.73 62560.73 65,689 68973.20 A.B. Yds mz- :102 : 47,969 49887.29 42771.21 45,022 47391.93 47392.93 49,887 52381.66 52382.66 55,002 57751.88 =CE CHIEF :101 : 47,493 49392.80 42347.25 44,576 46922.16 46923.16 49,393 51862.44 51863.44 54,457 57179.45 F RU3 MR. :100 : 47,017 48898.12 41923.12 44,130 46452.21 46453.21 48,896 51343.02 51344.02 53,911 56606.78 P MG EIIR : 99 : 46,485 48344.48 41448.45 43,630 45926.26 45927.26 48,344 50761.71 50762.71 53,301 55965.88 P & R DIl2 : 99 : 46,485 48344.48 41448.45 43,630 45926.26 45927.26 48,344 50761.71 50762.71 53,301 55965.88 ASST C[Y PEM: 94 : 40,631 42255.96 36228.30 38,135 40142.16 40143.16 42,256 44368.76 44369.76 46,588 48917.66 N%IN/PK KIN : 94 : 40,631 42255.96 36228.30 38,135 40142.16 40143.16 42,256 44368.76 44369.76 46,588 48917.66 EDG CEFKDL : 94 : 40,631 42255.96 36228.30 38,135 40142.16 40143.16 42,256 44368.76 44369.76 46,588 48917.66 FMCS IT : 94 : 40,631 42255.96 36228.30 38,135 40142.16 40143.16 42,256 44368.76 44369.76 461588 48917.66 CTY C WPD.ASS: 88 : 36,495 37955.13 32540.88 34,254 36056.38 36057.38 37,955 39852.89 39853.89 41,847 43938.91 ASST FIN EgR : 88 : 36,495 37955.13 32540.88 34,254 36056.38 36057.38 37,955 39852.89 39853.89 41,847 43938.91 PIRIZZ : 85 : 35,206 36615.94 31392.68 33,045 34784.14 34785.14 36,616 38446.73 38447.73 40,370 42388.62 ASST. PSR DER.: 80 : 32,920 34236.65 29352.75 30,898 32523.82 32524.82 34,237 35948.49 35949.49 37,747 39634.31 SLICE Sfi : 78 : 38,723 40272.09 34527.38 36,345 38257.48 38258.48 40,272 42285.69 47186.69 44,401 46621.08 ASST PLWM : 75 : 30,831 32064.72 27490.59 28,937 30460.48 30461.48 32,065 33667.95 33668.95 35,352 37120.02 Bf-DG DEE= : 75 : 30,831 32064.72 27490.59 28,937 30460.48 30461.48 32,065 33667.95 33668.95 35,352 37120.02 LEP. C[Y. : 75 : 30,831 32064.72 27490.59 28,937 30460.48 30461.48 32,065 33667.95 33668.95 35,352 37120.02 BlN ►EU SP : 75 : 30,831 32064.72 27490.59 28,937 30460.48 30461.48 32,065 33667.95 33668.95 35,352 37120.02 PLM ASST-KUE: 71 : 29,529 30709.66 26328.79 27,715 29173.18 29174.18 30,710 32245.14 32246.14 33,858 35551.37 EM T3 --H : 65 : 28,393 29529.09 25316.60 26,649 28051.64 28052.64 29,529 31005.55 31006.55 32,557.34184.72 A : 60 : 26,122 27166.81 23291.24 24,517 25807.47 25806.47 271167 28525.15 28526.15 29,952 31450.08 SECY/W/ZEN : 60 : 26,122 27166.81 23291.24 24,517 25807.47 25808.47 27,167 28525.15 28526.15 29,952 31450.08 Er,CG DJ[R/j?UZ: 53 : 22,42923325.97 19998.20 21,051 22158.67 22159.67 23,326 24492.27 24493.27 25,718 27003.83 PCLICE 5 s-53 : 22,429 _ 23325.97 - 19998.20 21,051 22158.67 -- -_-__- 22159.67_- 231325-24492.27 -24493.27 250,718-27003.83 LESS 1M : 53.: 22,429 23325.97 19998.20 21,051 22158.67 22159.67 23,326 24492.27 24493.27 25,718 27003.83 PIMIIQ MY : 50 : 21,441 22298.35 19117.14 20,123 21182.43 21183.43 22,296 X23413.27 23414.27 24,585 25814.23 PIW-/� SKY: 50 : 21,441 22298.35 19117.14 20,123 21182.43 21183.43 22,298 23413.27 23414.27 24,585 25814.23 1'r : 46 : 20,231 21040.74 18038.90 18,988 19967.70 19968.70 21,041 22092.78 22093.78 23,198 24358.39 JPNffM : 46 : 20,231 21040.74 18038.90 18,988 19987.70 19988.70 21,041 22092.78 22093.78 23,196 24358.39 Oct. 18, 1992 To: City Council and Steve Jilk From: Harry Willcox Subject: Oct. 27, 1992 Salary Meeting My intent in requesting this meeting is to dis to arrive at salaries and also impose a wage fr to bring our salaries from approx. 67% of budg budget or less. This would allow us a more re and manageable budget. My intent was not to time discussing the Stanton Report, other historical data. These are the exact things th to this point, because they are not eas understandable. Therefore I am proposing the fo 1. A single lane salary approach with a b top salary- conforming to comparable worth. 2. A time line o+ 5 to 7 years to reach th 3. A precise procedure on how the employe merit raise. There must be an educational com this because of the changing complexity of gove 4. A form developed for reviews that employee what is expected of them and asks fo feedback on how we can improve their working must be shared with the council so that the c the policies as needed to improve working condi 5. Those at the top of the range would increase with a cap, based on their contrib whether it be increased productivity, educati that result in cost savings to the city. Con should be a minimum requirement for a merit inc 6. We need to take a hard look at the sa1a that they are equitable in our mind with the � and also what is the case in private industry. tome +or the year�a_.ahead, with the State and deficits in mind� 7° Eliminate Longevity as this is just increase without respect to # 5 above. B. Eliminate Car Allowance as this is a that the city can no longer afford. 9. At the least before the council consi Steve Ji1k° we should at least review his perf not been done since. July 1990. 10. A plan to bring our % of wages to tota respectable 60% or less and address the � thousand residents and its impact on the 60% mind that 4.1 employees per thousand residents is in most cities that have a 60% or less ratic budget :uss a simp.ler way ?eze in an attempt ?t down to 60% of klistic, efficient »pend much if any :ities, format or .�t have brought us ,ly readable and .lowing.- tom, 1owing: tom, middle and top. would receive a onent a part of nment. pe11s out to the their goals and conditions. This uncil can change `ons. receive a merit tion to the City n or suggestions inuing education ease. ies and make sure bs they are doing e need to set the edera1 government another form of erk and a luxury ers a raise for rmance, which has 1 budget d t ge own o a .8 employees per goal. Kleeping in is what the ratio of wages to total If time permits I think the following items should be addressed as follows: t. The council should receive monthly a status report on the financial balances in all accounts. This has not happened since October of 1990. In July 1990 I furnished Steve with a simpler document that would be easy and readable. This document is used by many city and county governments so that they know where each department is with respect to their budgets. % have yet to see it implemented. ' 2. Individual budgets for each department which would include everything consumed by their respective departments, revenue generated and each departments share of building space, heat, light, water and administrative expense. This should not be difficult in view of the recent computer software we have purchased, which is quite sophisticated and allows for this. If we are able to achieve the above goals I believe that we wil.1 have a document that will be easily understood by all,concerned and we will have the credibility and support of the citizens that elected us. R Harry R. W1l�cx ` BEST PRACTICE 'COMPANY, LABOR RELATION Corning WHAT GOES INTO WORLD-CLASS LABOR relations? For companies, anything that will lead to raising productivity. For workers in a time of intense global com- petition, almost anything that improves job security, let alone pay and benefits. And above all, honest communications between management and labor about goals and how to implement them. All cf these have become the norm at Corning, in Corn- ing. N.Y., where the $3.3 billion -in -sales manufacturer has long been the dominant employer. While the company has i always treated its workers comparatively well, much of its behavior could best be characterized as enlightened pater- nalism, with the founding Houghton clan setting the rules. But in the early 1980s, newly appointed CEO James R. Houghton embarked on a new strategy emphasizing what he termed "total quality.' ' The objective was to help Corning meet rising com- petition from abroad. With the redesign of work pro- cesses playing a key role, (( management began a << systematic effort to bring the company's workers in- r n: to the decision-making i process. l The results in terms of material yield on-time j delivery, cost per unit and j defective parts per million .:! � have been impressive. At an Erwin, N.Y., plant that k makes molten -metal filters for catalytic converters, for example, defects are down 38% on a line redesigned a year ago. Defects on plant lines that have yet to be retrofitted are twice as high as on the redesigned line. Such improvements haven't gone unnoticed by Coming's competition. Corning has been benchmarked by the likes of Anchor Glass Container and Owens-Illinois. At all but the newest of Coming's 20 -plus U.S. plants, teams composed of both management and workers plan and imple- ment the redesign of factory processes. Employees then work together in "high performance" teams rather than in isolation along assembly lines, with the teams deciding which employees perform which tasks. Once trained to perform one job, workers are now encouraged to become expert in many.. 46 In return for giving a management asks thei the results. The incent new skills and meet q The promise of p% agreement to such chat be eligible for bonuses the company as well as Coming's approach t January 1989 agreemer gest union, the Americ agreement, dubbed "A I mits Corning managema this business and do what i the premise that nobody go existing people." Not surprisingly, the unit may reflect the economy's security became No. 1 se, Bankowski, president of tt Still, Bankowski says few a proach. Elsewhere, he says, when jobs are eliminated, take as long as six to eight i But such disputes don't anis approach, according to Bar progressive," he notes. risers more control over their work, to take on more responsibility for e: pay increases as workers master dity and efficiency goals. -sharing has helped secure union es. Next year union employees will ised on the overall performance of n that of their teams and factories. labor relations is spelled out in a between management and its big - i Flint Glass Workers Union. That rtnership in the Workplace, com- t to the goal of job security as tasks are consolidated as a result of plant redesign. In redesigning processes at the Erwin plant, for in- stance, Corning shifted workers to a new plant nearby, yielding$450,000in savings without any layoffs. Gary K: Emmick, Corn- ing vice president for employee relations, says the workers response has been more than encourag- ing. Emmick notes that the company chose to staff its new "factory of the future" in Blacksburg, Va., with AFGWU workers even though Corning could have gone nonunion there. "We've had a long and Productive relationship with the union; he explains. "Our goal is to compete in takes to win. But we start with is fired—that we don't get rid of is pleased, although its attitude npact on labor's priorities. 'Job :ral years ago," says Lawrence Toledo, Ohio-based AFGWU. npanies can rival Coming's ap- 1e union usually files grievances id the arbitration process can onths to resolve the situation. under Coming's "partnership" owski. "The company is very Ronald Fink FW SEPTEMBER 29, 1992 Every workday the federal government is involved in sonze Fve million transactions worth around $10 billion in the aggre- gate—about the same amount of business it takes a company like General Dynamics an entire year to generate. Managing all that money efficicn`l is a superhuman task, and reformers have been carpingabout waste in Washington, D.C., forge nerations. But with the many recent advances in computerization, it is now possible to generate the information needed to apply modern management methods. To avoid wasting tens of billions of dollars, Washington can now employ the financial controls, strategic planning tools, human resource management and evaluation and review techniques used by private -sector firms. 36 How well has the U.S. government taken advantage of this opportunity to manage its affairs more effectively In the Pages that follow, FW takes a close look at the management systems at 10 of the largest federal departments and agencies. In five cases, we examine the enormous departments in their entirety: Energp, Education, Transportation, Housing and Urban Development, and Veterans Af- fairs. Because the Department of Health and Human Services is so vast—it ac- counts for about a quarter of the federal budget— we look separately at its two ma- jor subsidiaries: Social Security and the Health Care Financing Administration, which oversees the Medicare and Medicaid programs. The final three agen- cies we examine are the largest components of executive branch departments that run like holding companies: TT' look at the IRS in Tre.;:ury, the Employment and Training Administration in Labor, and the Food and Nutrition Service in Agriculture. We have given each of these entities a grade for its management, judging how e�cientlyandski llfullvthe agencyfulfills its mission. We eorzider not only the actual delivery of services, but also un- derlying systems such as financial man- agement and reporting, information management, oversight, and performance measurement and evaluation. Our grades reflect not only the work of current administrators, but also Con- gress, past leaders, the Office of Manage- ment and Budget, and a variety of others. We begin with an open letter to the next President of the United States. R4 OCTOBER 27, 1992 aw ®i First of all, congratulations. And good luck. We write to offer you suggestions not about where you should spend the nation's tax dollars, but rather on how your government can more efficiently and effectively deliver the services to which it's already committed. While much progress has been made in the 10 departments and agencies we looked at, we believe the federal govern- ment has a long way to go in setting up management systems that are on a par with the average major U.S. corporation. The Guaranteed Student Loan System, for example, suf- fers a default rate that would put any bank out of business in a month. The Bureau of Indian Affairs has had such inade- quate financial systems that bookkeeping errors have run as high as $95 million a year. The Federal Aviation Administra- tion's computer systems are sometimes antiquated by the time they get on line. The inspector general of the Depart- ment of Housing and Urban Development (HUD) reports numbing problems at a number of the nations public housing agencies: "Our audits have found that properties are deteriorating, vacancies are increasing, operating expen- FW OCTOBER 27, 1992 J e ditures are unchecked, rents are uncollected and administra- tive and financial practices and controls are inadequate." Meanwhile, the political appointees who run these great enterprises tend to leave office just when they have figured out how to get anything accomplished. This rapid turnover takes place even when the same Administration stays in office. Talk to seasoned observers of the federal government and you will hear the same complaint: "Executives in the federal government have to deal with a changing constellation of bosses every year and a half or two years," says Chris Wye of the National Academy of Public Administration (NAPA). "It's a major problem " "With every new administrator, the plans of the last one are scrapped," says Paul Adams, retired inspector general for HUD. "Typically, the problem is that the incoming ad- ministrator is new to the department. They don't realize the organizational and structural problems. They come in with their own agenda. They're concerned about getting programs in place and operational. By the time they realize the extent of the organizational problems, they're in the twilight of their 17 A N 0 P E N term. Then someone else comes in and starts the cycle over." We believe the management problems that riddle your government can easily stop you from eve: achieving your goals—whatever they are. While you may get all sorts of new initiatives launched, actually producing results from those initiatives may prove more difficult. We know our criticisms are not new. Ever since the first national budget was presented to Congress in the early 1920x, a series of commissions has looked at reforming government. But our message is that the'tools are now available to ac- complish the job, daunting as it is. And the need has never been greater. With the average American spending around 30% of his earnings on federal taxes, there is among the voting public considerable anger and resentment at the status quo in Washington. This worries experienced government hands like Ed- ward Mazur, the newly ap- pointed controller of the Of- fice of Federal Financial Management in the Office of Management and Budget (OMB). Mazur used to be finance director for Virginia, which FW determined to be the best -managed state in the country (FW, May 12). Says he: "People are disenchanted at all levels about the federal government. There's a lot about the way the federal government works that doesn't make common sense. It may make political sense. But it doesn't make common sense." "The average citizen has lost confidence in his government, adds Senator Bill Roth of Delaware, the ranking Republican on the Senate Govern- mental Affairs Committee. "One study I've seen indicated that the public believes that 48C out of every dollar spent by the federal government is wasted:' Unfortunately, Congress rarely seems interested in bet- ter ways to manage the federal government. As John Kamen - sky, assistant director of federal management issues at the General Accounting Office (GAO), told us, "Getting Congress interested in management issues is like watching mud dry. It takes a lot of patience and perseverance." Both congressmen and cabinet members find it much more interesting to develop new programs than to implement the old ones. "It's very hard to convince the policymakers— Congress, cabinet officials, whomever—that financial manage- ment is critical; says Frank Hodsoll, the man directly in charge of the M in OMB, as deputy director for management of that agency. "The promotion prospects at the average agency are not based on financial management. They're based on issues. When a person says, 'I got three laws enacted to do such and so: everybody says'Hurrah: But nobody pays much at- tention to seeing if the laws actually worked." He's right, Mr. President. Who is going to vote for a con- gressman, senator or President on the "Better Accounting L E T T E R in Government" platform? "Do you see any candidates talk- ing about management problems?" asks Richard Kusserow; the recently retired inspector general of the Department of Health and Human Services and for five years a member of the President's Council of Management Improvement. "No! They're talking about health-care reform. It's the big policy question. But it's linked to management. How effec- tive a program is depends on how effectively it's ad- ministered:' The huge budget deficit, which you might have thought would encourage better management, actually seems to have worked against it.. "Economists dominate the system today because of the pressure of the deficit; says Ron Moe, specialist in American national government at the Congressional Research Service. "But economists think in short term while managers think in long term. A manager who goes in with a good idea that costs a small amount with long-term benefits is not go- ing to get a hearing." As a result, Mr. President, the portions of programs that are cut are often those which, in the long term, would make for cheaper, more efficient government. Here's how NAPAs Wye puts it: "In the Eighties, government cut all the an- cWary functions to programs, like information systems, coordination, policy analysis. The problem is, you're chop- ping the brain off the body. Of course, the body can walk so far until it has to change direction. Then you notice that it doesn't have a brain anymore ' An example of brainlessness: An exceedingly lean ad- ministrative budget has forced the Social Security Administra- tion to cut back sharply reviews of its $26.9 billion disability rolls. Of the approximately 350,000 cases that will come due for review this year, only 70,000 will be examined. Yet the National Council of Social Security Management Associations has estimated that for every additional dollar the agency spends on such continuing reviews, it could save $7 in pro- gram costs. This is not to say government agencies have made no prog ress in improving management systems recently, Mr. Presi- dent. In fact, we were somewhat surprised to discover a number of steps taken to identify and even correct manage- ment problems. These efforts need and deserve your active support: - There is now a section in the budget produced by the OMB that spells out high-risk conditions at agencies—financial and/or program problems that involve major dollars or have major effects on the recipients. The National Weather Ser- vice, for instance, is criticized for "systems, procurement and management problems [that] impair the ability ... to acquire major systems, particularly for the Weather Service's modernization" "People are disenchanted at all levels." 38 FW WrOBER 27, 1992 C t A N U Y E N • The inspectors general of the various agencies also churn out powerful material about management flaws. While their reports don't always result in corrective action, at least the information is there. The inspector general's report on the Department of Energy, for instance, spells out problems in an Ohio facility that produces and experiments in explosives. The facility has virtually no procedures for overseeing payroll, so, according to the IG, there is no way to "assure ... that its $59 million annualized payroll costs are processed accurate- ly. Also, fraud, waste and abuse of DOE funds could go undetected?' • The GAO continues to produce an impressive flow of reports outlining problems both large and small. Few people in government understand the intricate workings of the agen- cies better than the GAO staff members. They hit on every- thing from the foolishness of permitting the Smithsonian Institution and the Library of Congress to bid against each other for historic artifacts to the notorious check -writing practices at the House bank. The Federal Managers Financial Integrity Act re- quires the agencies them- selves to identify all areas of systems weakness and finan- cial control weakness in a yearly report. Although this requirement has been around since the early 1980s, only in the last couple of years has OMB focused attention to in- sure that political leaders and civil servants actually use this important management tool. Even so, the "material weaknesses" identified have often been uncovered by other entities, such as the GAO or the respective inspectors general. At the Department of Housing and Urban Development, for example, only three of 313 material weaknesses identified were discovered by management itself. But at least FMFIA forces the agencies to acknowledge their problems, set a timetable for solving them and admit whether or not they've actually made progress. • Perhaps most important, the Chief Financial Officers Act—now two years old—requires a number of major agen- cies to appoint a chief financial officer and put into place businesslike financial controls, such as annual audited finan- cial statements for certain significant operations. It also sets up a pilot program for a handful of agencies to develop a truly comprehensive annual -report -style statement. In addition, it requires that agencies annually develop five-year financial management plans, including means for developing perfor- mance measurements. "The CFO Act is one of the best pieces of financial management legislation ever passed," says Neil Tierney, a respected partner at Ernst & Young. It's not easy to persuade politicians that there's any cry- ing need to reconcile the flights of fancy in their budgets with real year-end figures. In fact, the very concept of an- nual reports has been alien to many in government. The L E T T E R budget is the document they R By way of example, here's how officer at HUD, responded to F financial statement: "We're not at to do that sort of thing. We have be But we don't have audited fmanci ferent kind of animal. I don't this that in the federal government." called back to recant his comm+ Sadly, in the CFO Acts fust ye propriations Committee Chai= seemed intent on making Flynds who has been in office since Franl term, methodically slashed fund of the act out of the various ager "Far from enough cash available" with generally accepted accour the 30 largest cities. But S&P and Moody's don't menfs debt. When you have money, your debt is assumed pressure for these necessary elsewhere. The average taxpay such changes. But perhaps a F an efficient government shoul The OMB's Hodsoll is convinc ly financial reports if it is to ex sibilities. "You have to be able t useful to the people who ultim< propriations Committee," he ss number of agencies, Social Sec get their statements done and Hill by February or March." While promising efforts are b( at hand is enormous. One area at once is performance measu cies to set out clear measures t they're doing, but how well th how long do the people who g training programs keep them? 1 us on. ick Flynn, an information s request for an audited siness, so we're not going gets and we have auditors: statements. It's just a dif- : you'll find anyone doing everal hours later, Flynn r of operation, House Ap- r Jamie Whitten (D -Miss.) cords come true. Whitten, h Delano Roosevelt's third 1g for the implementation cies' budgets. This slowed 3gress. After a strong ef- t by the OMB to support zding-described by one VM staffer as "going to war it"— more money should available this year to put ese reforms into place at any agencies. Unfortunate - there is still far from lough cash available to im- :merit all valuable elements the act. Fifteen years ago, most cies and states didn't have 6ted annual reports either. at after the financial sasters of the mid-1970s, :andard & Poor's and oody's pushed for these ports—and got them. Most ates now produce such )currents in compliance ing principles, as do 29 of !view the federal govern - ie capacity to print more to be AAA -rated. So the eforms has to come from :r doesn't get excited about -esident who wants to run I that Congress needs time- rcise its oversight respon- produce information that's ply will use it, like the Ap- s. "We are now pushing a rity among them, to try to edited in time to go on the ing made, however, the task you might want to focus on -ement—forcing your agen- tat show not only how much :y're doing it. For example, :t jobs through government low likely is it that a cardiac 40 PW OCTOBER 27, 1992 bypass patient at a Veterans Administration hospital will need another operation within a year? How long are people kept , on hold when they make a phone call to the Social Security Administration? How long does it take to get a tax refund from the IRS? Armed with that information, your Administration can spot faulty systems and fix them. No question, its a difficult assign- ment, but a number of states -notably Oregon, Texas and Florida—have been making big progress in this area, as have cities such as Dallas, Phoenix, Boston and Portland, Ore. And a few of your agencies—including the Department of Labor and the Social Security Administration—have made some enviable progress here, too. But its crucial that this be done government -wide. That will require leadership from you. The Chief Financial Officers Act took some steps in re- quiring that agencies experi- ment with performance measures. That's a start. But an even more power- ful step in this direction is be- ing offered by Senator Roth in Senate Bill 20—which had strong bipartisan support in committee. According to Senator Roth, "this legisla- tion would require that measurable performance goals be established for all federal programs, and that each agency publish an an- nual program performance report, showing what was ac- tually accomplished versus planned objectives.... The legislation also requires the incorporation of measurable goals into the federal budget itself—what is referred tows 'performance-based budgeting: This is what changes a budget from being largely a political document into a real policy- making and management tool." Naturally, there are those who don't put much faith in this kind of measurement, either because they think it will hurt their pet programs or because they recall the failed ex- periments with program measurement and evaluation of the 1960s and 1970s. Too much was attempted too quickly, and some measures turned out to be inappropriate. So the federal government backed off. But the need for such controls has never been greater. Recall whatloseph Wholey, director of the Washington Public Affairs Center of the National Academy of Public Administra- tion, said in testimony before Congress: "In the absence of outcome -oriented program goals and appropriate program performance monitoring systems, government too often is wasteful, inefficient and unresponsive, and government credibility and the credibility of elected officials sink lower and.lower." Finally, we would like to recommend a handful of other changes, although most of them will require real political guts to implement. • It's very tempting to cut the wages of government employees to save cash. But it's the wrong way to go. If you want the best and the brightest, you've got to pay the going rate. Pay less and you get what you deserve. "The salary structure for political appointees is not ade- quate," says NAPAs Wye. "These men are running corpora- tions the size of Chrysler or General Motors, with implica- tions for the entire world, and we're paying them $120,000 a year. This is hardly walking -around money for a major cor- porate executive." • In virtually every agency FW explored, rapid turnover of appointed officials was mentioned over and over again as a cause of widespread inefficiency and morale problems. Ap- pointees must be pushed to commit for the remainder of your term in office. It's bad enough that there's the potential for massive changes every four years; mid -course changes must be reduced. When civil ser- vants know they'll outlast their bosses, the inclination to ignore any efforts at change is inescapable. Listen to this employee of the Education Department: "I've been here for over four years now. And my division has reported to seven under- secretaries in that time. That includes one guy who was an acting undersecretary three different times. Each time someone new has new priorities, new ideas they want to push, they reinvent the wheel. And it makes it dif- ficult because they very often want things done instantly, and you have.to shift gears in the middle of the stream." • Government contractors must be better controlled. With all the hoopla over privatizing governmental functions, agen- cies have often taken an "it's not our job any more" attitude as soon as a contractor has been signed up. This is a par- ticularly hazardous mind -set when you consider the proclivity of some contractors to spend the government's money like it was printed by Parker Brothers for a giant game of Monopoly. Consider: The University of California is a contractor for the Department of Energy's nuclear weapons program. The GAO discovered that over a four-month period one of the university's laboratories spent $5,000 for—hold onto your hat, Mr. President—flat-tire insurance. The cost of the three flat tires that occurred during this period was $160. If an agency wants to contract out certain functions, it must provide diligent oversight. The list could go on and on. Procurement policies and com- petitive bidding procedures need to be streamlined. Con- gressional oversight of the agencies needs to be made more straightforward. interagency cooperation should be improved. Why, for instance, do VA hospitals and hospitals run by the Department of Defense often compete for the same patients? But well stop here. This is more than enough for you to han- dle in the next term. ■ "The sala?y structure is not adequate." FW OCTOBER 27, 1992 41 1991 LOCAL GOVERNMENT SALARY STUDY Office of the State Auditor Research and Government Information Division March 1992 PREFACE This study of salaries and wages paid to employees of Minnesota's local governments has been prepared by the Office of the State Auditor as mandated by Laws of Minnesota (1991), Chapter 345, Article I, Section 20, Subdivision 4. In pertinent part, the mandate requires: By February 1, 1992, the state auditor, with the cooperation of the commissioner of employee relations, shall report to the legislature on the salaries of the positions subject to the political subdivision salary limit in Minnesota Statutes, section 43A.17, subdivision 9. 77tis report shall included analysis of total salaries, highest salaries, comparisons with other states and public and private sectors, and any other information the state auditor considers appropriate regarding salaries and other potential efficiencies and cost savings in political subdivisions. Political subdivisions shall cooperate with the state auditor in providing the information necessary for this report. This Report is the culmination of seven months of extensive data collection, research and analysis of Minnesota's local government salaries. The report was prepared by the Research and Information Division of the Office of the State Auditor. The division is headed by Mr. Jim Gelbmann, Assistant State Auditor for Research and Information. The study, and preparation of the Report to the Legislature, was directed by Ms. Dorothy Bliss, Director of Research. Mr. John Jernberg and Mr. Dan Medenblik conducted much of the research for this study and assisted in drafting the report. Assistance was also provided by Mr. Robert Paolino. The Office of the State Auditor could not have completed this project without the assistance of Commissioner Linda Barton of the Minnesota Department of Employee Relations and her staff, Ms. Jan Wiessner, Assistant to the Commissioner, Mr. Jim Lee, Director of Compensation, and Ms. Liz Koncker, Personnel Representative. The Commissioner and her staff assisted our Office in designing the methodology for the study, as well as providing insight on a number of issues related to public employee compensation. The Office of the State Auditor also extends its appreciation to Commissioner R. Jane Brown and the staff of the Minnesota Department of Jobs and Training. Commissioner Brown made available data on Minnesota's private sector salaries and wages collected through the 1990 Annual Salary Survey conducted by the Department of Jobs and Training. This data base was a key component of our analyses of local government salaries. The Office of the State Auditor would also like to thank the Association of Minnesota Counties, the Minnesota School Boards Association, the League of Minnesota Cities and the dozens of local government officials who provided input for our study. These individuals provided us with technical assistance to facilitate our analysis of the wage and salary data. They also responded to our inquiries as we sorted through the many issues ,related to the wage and salary comparisons. The associations designated individuals toserve on an advisory council established by our Office for this study. (The membership of the Advisory Council, in addition to the over 50 individuals who took the time to provide input into the many issues addressed by this study, are identified in Appendix A.) Finally, we would like to extend our most sincere appreciation to the hundreds of local government officials who took the time to complete our surveys and respond to our requests for clarification of the information provided. This Report is hereby respectfully submitted to the Minnesota Legislature in compliance with Laws of Minnesota (1991), Chapter 345, Article 1, Section 20, Subdivision 4. Mark B. Dayton State Auditor March 1992 u EXECUTIVE SUMMARY During the 1991 Minnesota legislative session, an article in the St. Paul Pioneer Press on local government salaries caught the Legislature's attention. The article focused on the number of St. Paul city employees earning over $50,000 per year. It generated so much concern that the Legislature considered language freezing non -represented local government employee salaries. One proposal froze all salaries over $50,000; another went even further and froze those salaries above $35,000. In conference committee the language freezing salaries was omitted. In its stead, the Office of the State Auditor was directed to do a study of local government salaries. To do this study, we looked both at groups of employees earning over and those earning less than $50,000 per year. For employees earning over $50,000, we conducted a survey of over 650 cities, counties, school districts and special services districts with at least one employee earning more than $50,000. For employees earning less than $50,000, we relied on data from several local government surveys. We compared this local government data to salary data for similar private sector occupations. SUMMARY OF FINDINGS Employees Earning Over $50,000 In our research we found that as of June 30, 1991, over 4,800 local government employees earn more than $50,000 per year. Based on the Census Bureau's 1989 count of 137,071 full-time local government employees statewide, this means that approximately 3.5 percent of all full-time Minnesota local government employees earn over $50,000 annually. Five percent of Minnesota state government employees earn over $50,000. For all employees in Minnesota, in both the public and private sectors, six percent earned over $50,000 per year in 1990 (CPS data). Almost 70 percent. of the local government employees earning over $50,000 are in administrative, managerial, or supervisory positions. Other positions paying at that level are highly trained professionals, such as attorneys or engineers. In addition, a significant proportion of city employees (26 percent) paid over $50,000 are police and fire personnel. Insufficient data made it impossible to compare every position earning over $50,000 with similar positions in the private sector. Where comparisons are possible, however, we find that most local government professionals make wages comparable to their private sector counterparts. Some occupations, such as social worker or librarian, earn more in local government. Others, such as attorneys, engineers, and accountants, may be able'to earn more in the private sector. iii One area in which the private sector clearly pays more than the public sector for comparable positions is in senior management. We compared the salaries of a limited number of top metropolitan local government managers (i.e., county administrators, executive directors,. and mayors) to the salaries paid to senior executives in selected Minnesota corporations. (See Table C-1 on page 65.) These comparisons show that private sector senior executives earn several times more than comparable top executives in local government. We were not able to make similar comparisons for lower -level managers or for the administrators of medium to small local jurisdictions. The responsibWties of administrators, managers and supervisors in both the public and private sectors can vary widely. More focused research would be needed to make adequate public-private comparisons for these jobs. Local Government Executives - National Comparisons The International City Management Association publishes a] average salaries of local government executives (e.g., city manage] finance directors, police chiefs) for all states. Our review of Miuv executive salaries for 1990, relative to other states, found that Minn for the average salaries of assistant managers, to seventh for the ave recreation directors. The Bureau of Labor Statistics (1990) repoi fourteenth among the states for average salaries of all public and', Minnesota's national rankings for local government executive comparable to its national rank for overall salaries. Employees Earning Less Than $50,000 al comparisons of the county administrators, :)ta's local government to ranks from fifteenth ,e salaries of parks and that Minnesota ranks vate sector employees. ilaries, therefore, are When we looked at local government employees earning less than $50,000, we found that the lesser -paid employees of local governments tend to earn more than their private sector counterparts. Our comparison of benchmark occupations indicates that local government salaries for a number of jobs seldom fell behind the private sector average. Metropolitan area jurisdictions, especially, generally out -paced the wages of the private sector. Significant Disparities in Local Government Salary. Structures In addition to wages, we examined the salary structures of local government jurisdictions by comparing the percent of full-time employees paid over $50,000 between cities, counties and school districts of similar characteristics. We found that metropolitan area cities have the greatest disparities in their salary structures, ranging from no employees paid over $50,000, to 10.48 percent of the employees of the City of St. Paul earning over $50,000. Greater Minnesota city salary structures range from no employees earning over $,50,000 to 6.1 percent of Rochester's work force earning more than $50,000 per year. iv All metropolitan area counties pay some employees over $50,000. Carver County pays 3.5 percent of its work force over $50,000, while Ramsey County pays 10.53 percent of its employees over $50,000. Greater Minnesota counties appear to have the most uniform salary structures,. ranging from no employees earning over $50,000 in 37 counties, to 2.7 percent of Sherburne County employees earning over $50,000. All metropolitan area school districts employ at least one person at $50,000 per year or more. Their salary structures range from one percent in the Norwood school district to eight percent in North St. Paul. At least 187 Greater Minnesota school districts employ one or more individuals at salary levels of $50,000 or greater. Their salary structures range from less than one percent of employees over $50,000 to seven percent of employees earning over $50,000 in the Kenyon school district. The results of this analysis show a general lack of consistency in salary structures for cities and school districts. For example, the results of Table 3 on page 16 show that there is no apparent relationship between city size, expenditures, and the salary paid to the city manager. Table 4 on page 19 reveals that some large cities pay a smaller proportion of their full-time employees more than $50,000 than do other, smaller cities. This discrepancy is also.: true for school districts, and the salaries paid to school superintendents (see Table C-2 on page 70). Counties, on the other hand, seem to follow a more consistent pattern: larger counties usually pay higher salaries than smaller counties. Public Employee Unions Impact Salaries Part of our survey research involved asking whether a position was represented by a bargaining unit. We found that almost 85 percent of employees earning over $50,000 in the City of St. Paul are represented by a union. Over half of the City of Minneapolis' employees at that level are represented. Nearly a third of Hennepin and Ramsey county. employees over $50,000, and over 40 percent of high -paid school district employees are organized. The levels of unionization in the suburban metropolitan area, and in Greater Minnesota, are much less. Levels of unionization are clearly related to salary levels. A study by the National Conference of State Legislatures found that the states with the highest average earnings for state and local employees also are highly unionized; the states with the lowest average earnings have low unionization. Benefits Range From Good to Excellent After analyzing local government employee salaries, we opted to review employee benefit packages as well. We found evidence of good, and often excellent fringe benefits. For example, 14 percent of private sector employees receive over 25 days of paid vacation per year, regardless of their length of service. In contrast, almost 28 percent of Greater Minnesota v cities over 2,500 offer more than 25 paid vacation days per year, after 15 to 30 years of service. One bargaining unit in the City of Mountain Iron receives 40 days of paid vacation (eight weeks) after 25 years of service. Another area where the public sector benefits clearly exceed private sector levels is in paid holidays. Only 28 percent of the full-time employees in the prilvate sector receive more than ten paid holidays; in contrast, 76 percent of the Minnesota cities and counties in our sample provide more than 10 paid holidays.' In the area of sick leave and health insurance, local government employees also fare better than the private sector. Many private sector employees have a limited number of days to use for sick leave each year, while local government employees may carry sick leave accruals over from one year to the next. Virtually all local governments in our study offer some level of health coverage. For counties and non -metropolitan cities over 2,500, about 78 percent pay the full premium for single coverage. For metropolitan cities over 2,500, 93 percent pay the full premium for single coverage. Many private sector employers offer health insurance, but only 48 percent of workers have the full cost of coverage paid for by their employers. The combined effects of good pay and great benefits means that local government employees overall fare better than their private sector counterparts. THE NEED FOR COMMON GOALS TO ACHIEVE COST CONTAINMENT Our findings indicate there is sufficient reason for concern about the salaries and benefits being provided for many local government employees. For cities over 2,500, salaries and benefits comprise approximately 54 percent of total city expenditures. For Minnesota counties, salaries and fringe benefits account for approximately 38 percent of total expenditures. (The lower county percentage is a result of the large amounts counties spend on payments to individuals for various public assistance programs.) Efforts to contain local government costs cannot ignore areas of overly generous employee compensation. A number of different groups are involved in, or affected by, the salary setting process. To address the friction inherent in efforts to contain local government, spending through controls on local government salary levels, and the desire of local governments for autonomy in salary decisions, we considered both the spoken and implied goals of each of these groups. They include: the Legislature; local governments; unions; both public and, private sector employees; private sector employers; and the taxpayers of Minnesota. The principal goals of these groups are: 'Ten paid holidays are mandated by state law (MN Statutes 645.44, Subd. vi 1) maintain or improve service quality; 2) cut the costs of doing business, or keep costs low; 3) keep taxes, individual and corporate, from rising; 4) improve working and employment conditions; and 5) control government spending. Many of these goals are shared by more than one of the parties listed above. These goals also reflect the tension between the forces for saving and those for spending. Our most important finding in this exercise, however, is that one important group may not share the goal of reducing government costs, particularly if it affects wages. Public employee unions rightfully exist for the purpose of protecting and enhancing workers' rights, wages, and benefits. They share no responsibility for reducing public spending. Because_ of their size, and therefore influence in the public sector, they are an important counterweight on the drive to control costs. Public employee unions representing essential employees (e.g., fire, police) have a unique influence on local government salaries. If a local government and an essential employee bargaining unit are unable to negotiate a contract, the matter goes to arbitration. In arbitration, a neutral third party is chosen to decide the contested issues. The decision of the arbitrator is binding on both employer and union. The effect of the binding arbitration process is to place decisions about salary levels in the hands of individuals with no direct accountability to local taxpayers. Because of their size and influence, unions have another effect on the salary setting process. State and local elected officials are reluctant to conflict with employee unions, which wield considerable political clout. For example, the Minnesota Senate last year approved a proposal to freeze local government salaries over $50,000 -- but only for non -represented employees. Locally elected officials also may have difficulty challenging the salary requests of public employee unions. Public employee unions can be a significant factor in the outcome of local elections because of their ability to turn members out to vote, combined with the relatively low general voter turnouts for local elections. Elected officials need the direct involvement and cooperation of public employee unions if local government salary levels are to be addressed. It may also be in the best interest of public employee unions to become involved in attempts to balance local government salaries with those in the private sector. Failure to address excessive disparities in local government and private sector salary structures where they exist will breed increasing levels of taxpayer discontent. Minnesota taxpayers may opt to register their discontent at the ballot box. Forcing government cost containment through the election of candidates committed solely to reducing ,government spending could result in significant public sector employee layoffs and critical reductions in public services. vii THE EFFECT OF STATE POLICIES The statute creating this study directs the State Auditor's ( government salaries with the private sector. The Legislature has dire through policies enacted in statute, that there are at least two areas w want public sector salaries to mirror private sector salaries. The first i dominated job classes. Through passage of landmark pay equity law Legislature made it clear that their goal is to correct market-based it male -dominated and female -dominated jobs of comparable worth. As expected result is to find an increase in the difference between private pay for the affected occupations. The second area where public sector salaries differ from the pi in top-level public sector jobs. The legislatively mandated salary cap 95 percent of the governor's salary indicates the Legislature's belief should aspire to earn more than the highest-ranking public employee. rule are made for physicians, the Minnesota Legislature has effective employment -in the public sector is in large measure service, and that t to what public servants can expect to be paid. SUMMARY OF CONCLUSIONS Based on the findings of this study, we draw these main conclusions: 1) Local government employees overall are adequately, compensated relative to the private sector as a whole. Mce to compare local ay indicated, however, ere they clearly do not in traditionally fernale- in 1983 and 1984, the xluities in pay between he policy succeeds, the vector and public _sector The fact that local government employees fare well in a compz with the private sector does not mean, however, that every local overpaid. Nor do we conclude that most local government employees overpaid. In fact, we found no reason to focus concern about salary l earning over $50,000 per year. If over -compensation of public sector it should be investigated on a jurisdiction by jurisdiction, job class` applies to the examination of overgenerous benefits, as well. 2)' The level of unionization among local government eml $50,000 in the metropolitan area is so high that any 1 controlling salaries, if it focuses only on non -represented the mark. viii :te sector by design is - public employees of t no public employee pile exceptions to this sent the message that . is a reasonable limit often amply ison of average salaries )vernment employee is arning over $50,000 are vels only on employees .mployees is suspected, �y job class basis. This earning over L approach to Yom, will miss Despite their concern about local government salaries, the Legislature did not propose a salary freeze for union members. We heard several times from local government officials that a selective freeze on only non -represented employees would only provide the necessary motivation for groups of currently non -represented local government employees to organize (e.g., department heads and professionals). The only group of employees left unorganized in the metropolitan area could eventually be those statutorily prohibited from doing so. 3) The apparent lack of consistency in salary structures for Minnesota cities and school districts points to the need for greater understanding of the factors influencing_ salary levels, and the need for more accountability to the taxpayers in those areas. The findings relative to salary structures for all jurisdictions are preliminary. We have made this conclusion based on our comparison of the percent of employees paid over $50,000, local government size, population, and fiscal capacity. We found a fairly consistent salary pattern for counties: larger counties tended to have a larger percentage employees paid over $50,000. When we compared cities of similar size, however, some had many more employees paid over $50,000 than others. The numbers and salaries of full-time and part-time employees also varied quite dramatically for cities of similar size. The percent of employees paid over $50,000 also did not appear to be related to the total number of pupils in a school district. We do not know every reason for this variation in the number and percent of high -paid staff. However, state and local officials, and Minnesota taxpayers, should take note of these differences and determine if the salary structures of individual jurisdictions are appropriate. 4) The extent of health and pension coverage offered by local governments is commendable, as it meets the goals of social policies. Local government employee paid leave benefits for some jurisdictions, however, are extremely high compared to those offered in the private sector. Local government fringe benefits vary somewhat between jurisdictions and bargaining units, but are uniformly generous. Health and pension benefits help to meet the goals of government, by taking care of employees who need assistance in illness or advanced age. Overly generous paid leave compared to the private sector, however, only contributes to the public impression of inefficiency and wastefulness in government. These disparities need to be addressed and analyzed in relation to other factors in public employee compensation. 5) To be successful in keeping public sector salaries in line with private sector salaries, some means must be found to encourage public employee unions, especially those of essential employees, to share the goal of government cost containment. ix For unions, increasing constraints on spending in the public sector have already created some difficulty. Fringe benefits, such as health insurance, while generous in the public sector compared to the private sector, have been affected. Unions are feeling the pressure of trying to maintain the status quo. Nonetheless, public employee unions may need to adjust ti members. "Good" might no longer be defined as across-the-board above the cost of living. Instead, more compensation might be giti performance and productivity. Opportunities for merit pay could ensuring that the measures of performance are clear, consistent, fair, employees should have the opportunity to excel. Unions would h members to shoulder the responsibility for turning in a job perform2 in pay -- and be willing likewise to allow some members not to rec SUMMARY OF RECOMMENDATIONS 1) Affirm the salary cap and pay equity laws. Both the statutory salary cap and the pay equity requiremen significant issues by representatives of local government, although ne have anywhere near the effect on local government salaries as do pu responsibilities toward nual increases in wages according to individual increased, with unions d equitably applied. All to be willing 'to allow that merits an increase e an increase. are repeatedly raised as ier of these two _policies; is employee unions. The salary cap has been reached by only two local government employees, indicating that at its current level it is not a problem for most local governments. This statute prohibiting public sector employees from earning more than 95 percent of the Governor's salary is one of the few checks the Legislature has successfully placed on the growth of localgovernment salaries, and should be retained. The Department of Employee Relations reports that the average cost of implementing pay equity for local governments is about two percent of payroll, although this percentage may vary considerably from jurisdiction to jurisdiction. This policy plays an important role in defining the nature of public employment, and should not only stay in place but be reaffirmed. 2) Do not impose a blanket freeze on local government salar There are many factors to consider when trying to disco, employees are overpaid. These include the population served, number, of budget, and other individual responsibilities. When public sector e compensated compared to their private sector counterparts, there may explanations for the differences. The mere existence of differences in salaries does not necessarily reflect capricious overcompensatior x at any level'. r if local government people supervised, size ployees are generously rational and justifiable ublic and private sector on the part of local governments. The possible factors should be considered, and instances of overcompensation investigated on a regional and job class basis. 3) Require local governments to report periodically on their overall salary structures to the Legislature and to local taxpayers. Though we found that many local government employees, especially highly trained professionals, are paid salaries comparable to those found in the private sector, and that senior executives are sometimes paid less, we could not ignore the fact that some local government employees are overpaid relative to the private sector. Local governments should be allowed considerable discretion in establishing salary policies. But it is reasonable to expect that there should be some relationship between salary levels and other factors, such as the quality of services provided. At a minimum, there should be public accountability in local salaries. Local government salary data is public information and is available upon request. Many local governments report salary information annually. This information, however, is not always readily available or understandable to the general public. Overall local government salary structure information should be periodically provided to the Legislature and to local taxpayers. Comparisons of salary structures between similar units of government will make it possible to identify areas of overcompensation that are not caused by the implementation of state policies. Such information will allow local taxpayers to determine if the salaries of their local government employees are comparable to the salaries paid by other local governments with similar characteristics. 4) Institute reasonable limits on paid leaves for local government employees. Benefits for local government employees are even more generous, compared to the private sector, than salaries. Fringe benefits levels in local governments are almost always above the private sector average. This is especially true in the area of paid leaves: vacation days, holiday, and sick leave. Because these policies essentially pay employees for not working, local governments need to take steps wherever possible to correct excessive leave policies, including accruals. 5) Ensure that all employers offer adequate health and pension benefits. A significant portion of the cost of inadequate health and pension benefits for working Minnesotans is clearly borne by the State. While the provision of generous health and pension benefits is another factor setting local government employment apart from the private sector, these benefit levels may be viewed as fulfilling the Legislature's policy goals. Rather than reduce these benefits to private sector levels, private sector employers should be encouraged, if not required, to offer adequate health and pension benefits to their employees. xi 6) Develop incentives for public employee unions to participate in cost- containment efforts. The issue of union settlements was pervasive throughout our discussions with local government representatives. Part of the issue of high union salaries is historical: earlier generous settlements continue to carry the whole structure forward at I a higher level. Another part of the problem is that the binding arbitration process does not have to take costs into account. Public employees are organized to a much greater degree than private sector employees, and even more are poised to organize if a salary freeze ins imposed. Solutions to high salary costs for local government will not work unless unions participate. Unions need to recognize that it is in the long-term interests of their members to share in efforts to contain the costs of government. DIRECTIONS FOR FUTURE STUDY The issues of salaries and occupations are immensely complex. We have given an overview, with specific focus on local government salaries over $50,000. But the possibilities for analysis are endless. This is in part because salaries are a moving target: always changing. It is also because every job is to some degree as unique as the individual that holds it. Future studies of local government salaries could take several directions: comparisons of specific local government jobs to similar private sector occupations, comprehensive, data collection on a few benchmark occupations for all local units of government and a private sector sample; or an analysis of the relationship between government organization structures and salary levels. The goals, or purpose of any such research needs to be clearly spelled out, however, before the resources to do a study are expended. xii SECTION IV: ISSUES -- FACTORS AFFECTING LOCAL GOVERNMENT SALARIES Research Question: What are the factors affecting local government salaries? Which factors have the greatest effect on local government salaries? As part of our research, we held a number of meetings with local government officials to learn from them what factors they believe have the greatest influence on local government salaries, particularly salaries over $50,000. Through these discussions, interviews with other individuals involved with local government salaries, and other research we learned about several, significant issues related to local government salary and benefit policies that are somewhat,_ unique to the public sector. We believe it is necessary to consider these issues while making comparisons between public sector and private sector salaries. Those issues are: unions and the level of unionization in the public sector; the state's pay equity policy; labor market competition; and the statutory salary cap. Unions in the Public Sector According to national data from the Bureau of Labor Statistics, 43.6 percent of all government workers nationwide were represented by a union in 1989. In contrast, only 13.7 percent of all private nonagricultural wage and salary workers were represented by a union during that year. The U.S. Bureau of the Census stopped collecting state -by -state data on union representation in 1981. The Minnesota AFL-CIO, however, estimates that 21 percent of all Minnesota workers are represented by a union, including public sector employees. When government workers are considered separately, the percent represented is likely much higher. The cities of St. Paul and Minneapolis estimate their percent of total employees represented by a union to be 9$ percent and 94 percent, respectively. Ramsey County estimates 72 percent of their work force to be union members; Hennepin County estimates 55 percent. Over 35 percent of just the local government employees earning over $50,000 are represented by a union. The degree to which an organization's employees are organized will affect the way in which that organization sets salary levels. The larger the union, the greater the ramifications of a strike, and the greater the union's ability to apply pressure to management during salary negotiations. Levels of unionization are clearly related to salary levels. A study by the National Conference of State Legislatures in 1990 found that the states with the highest average earning for state and local employees are highly unionized; the lowest states have low unionization. 42 Government workers are organized to a greater degree than other categories of workers. For local governments, however, the issue is not only public employee unions. In addition to the bargaining power of unions, local governments have large groups of represented employees who are classified under state law as "essential" employees. Essential employees include: firefighters, peace officers, guards at correctional facilities, confidential employees, supervisory employees, principals, and assistant principals. For state employees, the definition includes all law enforcement employees, health care professionals, correctional guards, professional engineering, and supervisory collective bargaining units, and no other employees. (MN Statutes, Chapt. 179a, subd. 7, 1991) The Public Employment Labor Relations Act (PELRA) prohibits essential employees from striking because a strike -related work stoppage by these employees could seriously endanger the safety and welfare of the public. Because essential employees are prohibited from striking, they are guaranteed the right to binding arbitration. This trade-off has ensured uninterrupted services from firefighters, police officers, prison guards, and others. Binding arbitration means that when the employer and the union contract, the matter goes before a professional arbitrator. The arbitrator ac party during the negotiations. In the end, however, the arbitrator's decisi including wage levels, is binding on all parties. According to several local government officials, the problem with process is that it has the potential to inhibit genuine good faith collective t rely on the arbitration process rather than the negotiation process. In ad& officials expressed frustration at the concept of increasing their accountab local government employee salaries. They question whether they should these salary levels when binding arbitration effectively results in a deleg a non -elected professional arbitrator. As one city manager put it: ... the final salary and benefit levels for essential employees are c by arbitrators, who have no short or long term interest in the decisions on.,_ he organization, nor, more importantly, are accountable for tax increases that may logically follow. James Manager, Minnetonka (correspondence) The effects of binding arbitration can reverberate throughout arbitrator awards a large increase to an essential employee bargaining benchmark for other groups in negotiations. Large increases for staff lev pressure to raise management salaries. In jurisdictions with a high per( this overall effect can be particularly costly. cannot agree on a :s as a neutral third :)n on the contract, binding arbitration ;wining if the parties ,n, local government y to the taxpayer for held accountable for. on of their duties to i determined pact of their y politically Miller, City organization. If an nit, this becomes the employees can create haze of unionization, The pressure of union settlements on administrative salaries was ,repeatedly mentioned to us in meetings as well as correspondence. City representatives particularly emphasized to us how difficult it is to maintain "appropriate" pay differentials between represented staff and non - 43 represented managerial employees, especially police. This difficulty is further compounded by the exempt and non-exempt classifications under the federal Fair Labor Standards Act. According to Joyce Twistol, the City Clerk in Blaine: The most impacting mandate on the federal level is the Fair Labor Standards Act which classifies employees into two groups: non-exempt (eligible for over -time pay) and exempt (not eligible for over -time pay). The impact of this mandate is severe compression of wages between employees eligible for overtime and their supervisors who are not eligible for overtime; i.e., police officers, police sergeants, lieutenants and captains. (correspondence) Several representatives told us that a salary freeze for non -represented employees, like that proposed by the 1991 Minnesota Legislature, would magnify wage compression because exempt employees, who are not eligible for overtime pay, would have their salaries frozen while non-exempt employees could continue to receive raises and overtime. We were also told that many of the currently exempt employees would quickly form unions and file for overtime. Will Volk, the Employee Relations Director of Dakota County, wrote to us that: proposed external controls will result in general salary compression between employees below $50,000 and those currently compensated at that level. This compression will negatively affect supervisor/subordinate pay relationships and force employees to seek third party representation... it is also likely to result in employee turnover as well as attraction and retention problems. Several local officials expressed interest to us in changing the PELRA statute so that, public employers, at the time of a bargaining impasse, could determine if the employees were essential or not, and if a work stoppage would threaten health and safety of its citizens. If the employees were deemed essential, they would be prohibited from striking but guaranteed the right to binding arbitration; if it was determined that there was no danger in allowing the group to strike, they would be allowed to strike, and lose the right to binding arbitration. Pay Equity Minnesota has been a leader in establishing and implementing a policy, of pay equity for all public employees. Pay equity refers to the policy of paying all employees, regardless of gender, a wage based on the worth of the job to the organization. The concept developed following research that demonstrated clear-cut, persistent and sometimes large disparities in pay between male- and female -dominated occupations, even when the skill or education levels required were similar. Following the successful implementation of pay equity in state government in 1983,''., "The Legislature appropriated $21.7 million to implement pay equity for the State. By making the appropriation, the Legislature was implicitly acknowledging that pay equity would result in increased salaries. EVE the Legislature passed a law requiring local governments also to adopt the p and to implement it based upon the principle of comparable worth. No appri to facilitate this change. of pay equity ion was made Local government officials repeatedly point to pay equity as an important factor affecting upper level salaries, in addition to the salaries of female -dominated classesof employees. The effect of this policy, they contend, is similar to that of binding arbitration: pay raises due to comparable worth adjustments narrow the pay differential between employees and their supervisors, or causes the entire salary structure of the organization to rise. We conclude from our study of this issue that the effects local gov from the pay equity legislation are in fact a sign of its intended succe government was introduced to correct the market's traditional and persistent of female -dominated occupations. The difference in wages between the p sector indicate that pay equity has done just that. Some of the other change are not the direct result of pay equity, but may be the result of additional f effect of pay equity. Some local government officials suggested that they be pen considerations" in making comparable worth determinations and setting dominated job classes. However, our examination of benchmark posit that local governments pay several traditionally male -dominated occupat rates. Going back to market-based rates for female -dominated classes return of the wage disparities that pay equity is intended to correct. 'T to reintroduce market-based inequities into local government salary stn Labor Market Competition Salary structure and wage rates are frequently influenced by an e the wages and salaries paid by other, similar employers, for the Consideration is given to the potential pool of applicants for a given positi the employer will have to compete for qualified personnel. In our discussions with local government officials, labor market V as an issue relating to the level of local government administrative sal $50,000 should not be frozen, city representatives stated, because that w government's ability to attract top candidates to administrative pos government officials argued that administrative positions would not be candidates for many of those jobs come from within the public sector candidates for top government jobs are often willing to accept the existing 1 for an increase in status. Rather, the effect of a salary freeze over $50 those positions for which competition with the private sector is stroi professional jobs, such as attorneys, systems analysts or engineers. 45 ments are feeling Pay equity for Aic and the private in salary structures -ces magnifying the d to use "market y rates for female ;Section II) reveals well above market A simply lead to a is no good reason ployer's attention to ime types of jobs. i, and to what degree )etition was raised s. Salaries over d inhibit the local ns. Other local ch, affected, since way. In addition, levels in exchange J would be felt in st: highly trained The Statutory Salary Cap and Salary Compression State law dictates that most public employees may not be paid more than 95 percent of the governor's salary (physicians are exempt from this provision). The current salary cap is $103,600 (95 percent of $109,056). Given this, the most a public sector executive could make is approximately 11 times the salary of a full-time worker earning minimum wage. This difference in top and bottom wages contrasts greatly with the kinds of differences in wages currently being publically discussed. For example, Minnesota Congressman Martin Sabo recently proposed to limit corporate tax deductions on executive salaries to up to 25 rimes that of the firm's lowest paid worker -- and that is considered a significant cut. This proposal is symbolic of increasing concern about the growing gap between most workers and a number of highly compensated corporate executives. Other discontent with extremely high corporate executive salaries has been expressed in a recent decision by the Securities Exchange Commission to allow stockholders to vote on executive compensation packages. Clearly, salary differentials in the private sector can be quite different than in the public sector. Most of the discussion of the gaps between the highest and lowest salaries in the private sector, however, has been about executive salaries in very large corporations. No information on top -to -bottom pay ratios is available for medium and small businesses that are more likely to correspond to most Minnesota local governments. The salary cap was cited by local government officials as an important contributor to' salary compression. In fact, however, only two local government officials are currently at the cap: the Minneapolis superintendent of schools and the executive director of the Southern Minnesota Municipal Power Agency. Hennepin County indicated to us that they felt the recent increase in the governor's salary relieved much of the pressure they had felt on top salaries, and that for them, compression was not currently an issue. Where the smaller salary range does'.- seem oes.:seem to be a current and potential problem is not at the top, but in the middle. In particular, when more and more levels of administration are built into an organization'sstructure, the ability to create real differences in pay between managers and those they supervise becomes more difficult. For most local jurisdictions, the legislative salary cap will not become an issue directly. However, the presence of the salary cap appears to increase the sense of salary compression in local government. The actual effect of compression for most local governments is actually generated by budget constraints upon overall salary levels. The upward pressure of union settlements and pay equity adjustments often meet these constraints, compounded by over- developed hierarchies and the lack of additional funding to implement pay equity. These factors, taken together, are what cause salary compression. 46 SECTION V: FINDINGS AND RECOMMENDATIONS Occupational analyses are by nature complex. Every job is unique to some degree, shaped both by the employer and the employee. While this may serve .the individual well, it makes comparative analysis quite difficult. Malang objective comparisons of salaries and wages paid to individuals is an incredibly complicated endeavor. Even attempts to establish an equitable salary scale within a single organization call -for a number of subjective judgments. The complexities of salary comparisons are a direct result of the many variables that must be considered when making such comparisons. These variables include: the responsibilities of the job, the level of education and training: required for the job, the productivity of the individual, the experience level of the individual, the market demands for individuals with specific skills and backgrounds, and the financial resources, as well as specific salary and resource allocation policies, of the organization itself. Attempting to make valid comparisons of salaries of individuals in different sectors of the economy -- such as comparisons between the public and private sectors further compounds the number of variables that must be considered. Despite the difficulties, if Minnesotans are to receive the most public services for their tax dollars, it is essential that efforts be made to control the salaries of local government employees by keeping them in line — as much as possible -- with the salaries paid to their private sector counterparts. For Minnesota cities with populations over 2,500, approximately 54 percent of total current expenditures are spent on salaries and benefits.12 Any effort to improve the efficiencies of local government services can not ignore potential savings that may be identified in such a large category of expenditures. This section of the report summarizes the specific findings we have identified during the course of our study. We draw conclusions from our findings and, where applicable, make recommendations for how best to address each issue. 12 For Minnesota counties, salaries and fringe benefits account for approximately 38 percent of total current expenditures. The lower county percentage is a result of the large amounts counties spend on payments to individuals for various public assistance programs, 47 FINDINGS: Employees Earning Over $50,000 In our research we found that over 4,800 local government employees earn more than $50,000 per year. Based on the Census Bureau's 1989 count of 137,071 full-time local government employees statewide, this means that approximately 3.5 percent of all full-time Minnesota local government employees earn over $50,000 annually. At least 85 cities, 50 counties, 229 school districts and 29 special service districts have one or more employee earning over $50,000 per year. Almost 70 percent of the local government employees earning over $50,000 are in administrative, managerial, or supervisory positions. Each type of jurisdiction, however, has its own pattern. In cities and counties, 54 percent of personnel paid over $50,000 are administrative. In cities, over 26 percent of the highest paid people are police and fire employees; in counties, almost 22 percent are attorneys. In school districts, over 92 percent of all employees earning over $50,000 are administrative, mainly superintendents and principals. In our analysis and comparisons of local government positions earning more than $50,000 per year, we found that the salaries paid to local government employees are, for the most part, in line with the salaries paid for similar jobs in the private sector. This was particularly true for the highest-paid local government attorneys, chemists, accountants, EDP systems analysts, and civil engineers. These types of jobs are paid salaries that are equivalent to, and often less than, the salaries of their top -paid counterparts in the private sector. However-, we also found that the highest-paid local government social workers and librarians are paid more than their top -paid private sector counterparts. Where it is possible to make comparisons of top executives, we find that public sector executives in the largest local government jurisdictions make several times less than comparable executives in the private sector. This is at least in part a reflection of the expectation of service on the part of public employees. In some cases it is also compensated for by an increase in public status. The legislatively mandated salary cap also appears to hold salaries down; currently only two local government employees are right at the level of the cap. We also compare Minnesota's average salaries for local government executive positions to the average- salaries paid in other states for the same occupations. For these jobs, Minnesota ranks from 7th to 15th. In a national comparison of the average salaries of all state citizens, Minnesota ranks 14th. Minnesota's rank in local government executive salaries, therefore, is comparable to its rank for overall salaries nationwide. FINDINGS: Employees Earning Less Than $50,000 When we looked at local government employees earning less than $50,000, we found that the lowest -paid employees of local governments tend to earn more than their private sector M counterparts. Our comparison of benchmark occupations indicates that local government salaries for a number of jobs were consistently higher than the private sector average. Metropolitan area jurisdictions, especially, generally out -paced the wages of the private sector. As jobs become more skilled, requiring higher levels of education and training, the gap between public and private sector pay diminishes. Given that about 95 percent of Minnesota's local government work force are in jobs paying less than $50,000, we can safely say that overall, public employees fare very well in comparison to private sector wages. CONCLUSION Local government employees overall are adequately, and ,often amply compensated relative to the private sector as a whole. The current policies of the salary cap and pay equity are having their intended effects of holding salaries down and correcting gender-based salary inequities. Affirm the salary cap and pay equity laws. While this conclusion may seem contradictory to the finding that some local government executives earn far less than their private sector counterparts, keep in mind that they are relatively few in number compared to the numbers of local government employees in other. occupations. The statute prohibiting public sector employees from earning more than 95 percent of the Governor's salary is one of the few checks the Legislature has successfully placed on thee growth of local government salaries. We find little evidence to suggest'', that the cap itself is causing real problems for most local governments at this time. Only two public employees have reached the cap; a few more are approaching this limit. Repealing the cap at this time'could fuel expectations. for salary increases at all salary levels. However, we acknowledge that if the Governor's salary is not periodically adjusted, the issue of the salary cap will need to be revisited. Pay equity, while we heard much about it, is another issue for whidh we found very little hard evidence of significant negative effects. Pay equity, as intended, h'as raised the average salary of some female -dominated job classes. The fact that many local government employees are paid better than their private -sector counterparts is not due solely to pay equity, but to a long history of generous and across-the-board union settlements. We support the Legislature's efforts to correct unjustified, gender-based disparities in state and local government salary structures. FINDINGS: Unionization In our survey, we asked local governments to indicate, for every person earning over 49 $50,000, whether or not that position is represented by a bargaining unit. More than 1562 local government employees earning over $50,000 are members of an organized bargaining unit; or approximately 35 percent of all employees in our survey earning over $50,000. This percent of higher -paid employees belonging to unions varies widely from jurisdiction to jurisdiction. Only 5.1 percent of county employees earning over $50,000 in Greater Minnesota belong to unions. In the City of St. Paul, upon which so much concern has focused, almost 85 percent of the employees earning over $50,000 are members of collective bargaining units. These findings about the levels of unionization among local government employees earning over $50,000 are very important in light of legislative efforts to control local government salary through the use of a salary freeze for' non -represented employees. Metropolitan area local government employees earn the most; they are also the most represented by unions. A salary freeze on non -represented employees would have an extremely limited effect on salary levels. CONCLUSION The level of unionization among local government employees earning over $50,000 in the metropolitan area is so high that any blanket approach to controlling salaries, if it focuses only on non -represented employees, will miss the mark. RECOMMENDATION Do not impose a blanket freeze on local government salaries at any level. There are many factors to consider when trying to. discover if local government employees are overpaid. These include the population served, number of people supervised, size of budget, and other individual responsibilities. When public sector employees are more highly compensated than the private sector, this may be in part because of the Legislature's goal of being a leader in establishing progressive employment policies, or because of historical union settlements, and does not necessarily reflect capricious overcompensation on the part of local governments. These factors should be considered, and instances of possible overcompensation investigated on a -regional and job class basis. A freeze only on the salaries of local government employees earning over a pre- determined amount (e.g., $50,000) could create significant salary inequities within local government organizations. Due to continued upward pressure on the salaries of all employees not subject to a freeze, it is highly probable that, under a selective salary freeze, many staff level positions within local government organizations could begin earning more than the amount paid to their supervisors and managers. This situation would be further exacerbated if the salary freeze is applied only to those employees not subject to a collective bargaining unit agreement. Furthermore, a blanket freeze on the salaries of all local government employees paid over 50 $50,000 annually would be unfair to many local governments that have done a good job controlling their payrolls. A freeze on all salaries over $50,000 annually would only be justified if all local government employees paid over $50,000 were overpaid. Our findings indicate this is not the case. While freezing the salaries of local government employees who are paid more than they could reasonably expect to earn in the private sector is a desirable public policy goal, a freeze on all salaries over $50,000 would impose unfair constraints on all local governments, in an attempt to address the salaries of a relatively few overpaid employees. Furthermore, limiting the freeze to employees earning over $50,000 per year would do nothing to address the instances where local government employees earning under $50,000 are earning more than they could reasonably expect to earn in the private sector. FINDINGS: Significant Disparities in Local Government Salary In our survey of local governments, we asked for information on the distribution of employees within several salary categories, including the total number paid over $50,000 and the total number of full-time employees. We calculated the percent of employees paid over $50,000 for all local governments reporting in the survey. We also looked at the salaries paid' to top local government employees and compared those salaries for similar jurisdictions. The results of this analysis are somewhat surprising. We find very little evidence of any consistent pattern for Minnesota cities in the percent of employees in the over $50,000 category, or in the amount paid to executive employees. Metropolitan area cities have the greatest disparities in their salary structures, ranging from no employees paid over $50,000, to 10.48 percent of the employees of the City of St. Paul earning over $50,000. For example, the City of Golden Valley, with a population of 20,971 and direct current expenditures of $11.6 million, pays almost nine percent of its 123 full-time employees more than $50,000. Bloomington, on the other hand, pays just over six percent*of its 490 full-time employees over $50,000, and has a population of 86,335 and direct current expenditures of $45.7 million. Greater Minnesota city salary structures range from no employees earning over $50,000 to 6.1 percent of Rochester's work force earning more than $50,000 per year - School districts also display inconsistencies in salary structures population is considered. Superintendents of some of the largest school amounts to superintendents of districts a fraction of their size. County s reflected size of population and direct current expenditures: larger counti salaries. Greater Minnesota counties appear to have the most uniform sala from no employees earning over $50,000 in 37 counties, to 2.7 percent employees earning over $50,000• We suspect that there may be any number of factors at w, structures, but had insufficient time to pursue more information. It does on population and expenditure data, that some local governments are inconsistent with the salaries paid by similar jurisdictions. 51 when total student districts earn similar Mary structures alone .s tend to pay higher ,y structures, ranging of Sherburne County to influence salary ear, however, based ine salaries that are CONCLUSION The apparent lack of consistency in salary structures for Minnesota cities and school districts points to the need for greater understanding of the factors influencing salary levels, and the need for more accountability to the local taxpayers in those areas. RECOMMENDATION Require local governments to report periodically on their overall salary structures to the Legislature and to local taxpayers. Though we found that many local government employees, especially highly trained professionals, are paid salaries comparable to those found in the private sector, and some senior executives are paid less, we could not ignore the fact that some local government employees appear overpaid relative to the private sector. Local governments should be allowed_ considerable discretion in establishing salary policies. But it is reasonable to expect that there, should be some relationship between salary levels and other factors, such as the quality of services provided. The key to addressing the lack of consistency in local government salary structures is to require accountability to the taxpayers who ultimately pay the salaries of local government employees. Minnesotans, however, cannot hold their local elected officials accountable if they do not have easy access to adequate information on the actual salaries of local government employees. To provide this data, the Legislature should require cities with populations of 2,500 or more, counties, and school districts to report annually on salaries. This data should be compiled into a report for distribution to the public. For each local unit of government, the annual report should identify the population of the jurisdiction, the total number of full- and part- time employees, the total salaries and wages of the employees, and the number and percent of employees paid more than twice the statewide average salary for all Minnesotans. Where it appears that salaries for local government employees are excessive relative to their peers, the issue must be brought to the attention of the citizens of that jurisdiction. Local elected officials should then determine if their employee compensation policies are appropriate, taking into account private sector wages, but also state policies such as pay equity. If local elected officials are convinced that the policies and the productivity of the employees in question warrant the high salaries, they should explain the rationale for the high salaries to the citizens of the jurisdiction. If the level of the salaries cannot be explained, the officials should be held accountable for. addressing the issue through targeted salary freezes, or at the bargaining table. Minnesotans may lose confidence in their local governments if unexplained high salaries go unchecked. FINDINGS: Benefits After analyzing local government employee salaries, we opted to review employee benefit packages as well. Our review of employee benefit packages offered by Minnesota cities and 52 counties, and those available in the private sector, found that the benefits offered by most local governments are equivalent to, or better than, those offered by the typical medium or large sized private sector firm. For example, 14 percent of private sector employees receive over 25 days of paid vacation per year, regardless of their length of service. In contrast, almost 28 percent of Greater Minnesota cities over 2,500 offer more than 25 paid vacation days per year, after 15 to 30 years of service. One bargaining unit in the City of Mountain Iron receives 40 days of paid vacation (eight weeks) after 15 years of service. Another area where the public sector benefits clearly exceed private sector levels is in paid holidays. Only 28 percent of the full-time employees in the private sector receive more than ten paid holidays; in contrast, 76 percent of the Minnesota cities and counties mi our sample provide more than 10 paid holidays. In the area of sick leave and health insurance, local government e better than the private sector. Many private sector employees have a limit to use for sick leave each year, while local government employees may carry over from one year to the next. Virtually all local governments in our stuc of health coverage, with 78 percent of counties and small non -metropolitan 4 of large metropolitan cities paying the full premium for single coverage. W1 of medium and large sized firms are provided health insurance, more of tl required to pay a percentage of the cost of their premiums, compared to the I insurance premiums paid by city and county employees. Many private sec- health echealth insurance, but only 48 percent of workers have the full cost of covers employers.- Nearly mployers. Nearly all city and county employees are covered by a defined t Only 63 percent of private sector employees have such coverage for th( combined effects of good pay and great benefits means that local gov overall fare consistently better than their private sector counterparts. CONCLUSION The extent of health and pension coverage offered by local go, commendable, as it meets the goals of social policies. Local employee paid leave benefits for some jurisdictions, however, a high compared to those offered in the private sector. RECOMMEMATIONS 1) Institute reasonable limits on paid leaves for local employees. Benefits for local government employees are even more generc 53 iployees also fare d number of days ;ick leave accruals ( offer some level ties, to 93 percent le most employees )se employees are ;rcentage of health )r employers offer. e paid for by their efit pension plan. retirement. The nment employees !nts is extremely compared to the private sector, than salaries. Fringe benefits levels in local governments are almost always above the private sector average. This is especially true in the area of paid leaves: vacation days, holiday, and sick leave. Because these policies essentially pay employees for not working, local governments need to take steps wherever possible to correct excessive leave policies, including accruals. Few private sector employees have the benefit of eleven paid holidays and six or more weeks of paid vacation per year. Local governments that offer excessive paid leave policies for. their employees should be held accountable to taxpayers. Local elected officials should take steps to correct excessive paid leave policies. 2) Ensure that all employers offer adequate health and pension benefits. A significant portion of the cost of inadequate health and pension benefits for working Minnesotans is clearly borne by the state. State and local government officials should be - commended for ensuring that all local government employees have adequate health and pension benefits. Any disparities that exist between local government employees and the private sector relative to health and pension benefits is clearly the result of the private sector offering insufficient benefit levels. As health care costs continue to rise, all employers should guarantee all of their employees adequate levels of health care benefits. While the provision of generous health and pension benefits is another factor setting local government employment apart from the private sector, these benefit levels may be viewed as fulfilling the policy goals of the Legislature. Rather than reduce these benefits to private sector levels, private sector employers should be encouraged, if not required, to offer adequate health and pension benefits to their employees. FINDINGS: The Need for Common Goals to Achieve Cost Containment in Government A number of different groups are involved in or affected by the salary setting process. To address the friction inherent in efforts to contain local government spending through controls on local government salary levels, and the desire of local governments for autonomy in salary decisions, we considered both the spoken and implied goals of each of these groups. . They include: the Legislature; local governments; unions; both public and private sector employees;. private sector employers; and the taxpayers of Minnesota. The principle goals of these- groups are: 1) maintain or improve service quality; 2) cut the costs of doing business, or keep costs low; 3) keep taxes, individual and corporate, from rising; 4) improve working and employment conditions; and 5) control government spending. 54 Many of these goals are shared by more than one of the parties listed above. These goals also reflect the constant tension between the forces for saving and those for spending. Our most important finding in this exercise, however, is that one important group may, not share the goal of reducing government costs, particularly if it affects wages. Because employee unions share no responsibility for reducing public spending, they have no incentive for considering cost containment at the bargaining table. Public employee unions rightfully exist for the purpose of protecting and enhancing workers' rights, wages, and benefits. Because of their size, and therefore influence in the public sector, this is an important counterweight on the drive to control costs. Also because of their size and influence, unions have another effect on the salary setting process. State and local elected officials are reluctant to conflict with employee unions, which wield considerable political clout. For example, the Minnesota Senate last year approved a proposal to freeze local government salaries over $50,000 -- but only for non -represented employees. Locally elected officials also may have difficulty challenging the salary requests of public employee unions. Public employee unions are a significant factor in the outcome of local elections because of their ability to turn members out to vote, combined with the relatively low general voter `turnouts for these elections. Elected officials need the direct participation and cooperation of public employee unions if high, local government salary levels are to be addressed. The effects of union settlements are widespread. Once a large union has settled, it provides the precedent far the salary increases bargained for in other employee groups. The salaries of non -represented employees, generally managers and supervisors, are then adjusted to maintain comfortable wage differentials from those they supervise. If salary increases for represented employees are controlled, the pressure to increase managers' salaries will be relieved as well. Because of increasing pressures to contain costs, local government employee unions may need to change the way they view their responsibilities towardmembers. "Good" might no longer be defined as across-the-board annual increases in wages above the cost of living. Instead, more compensation may be given according to individual performance and productivity. Unions could look for ways to increase opportunities for merit pay, and ensure that the measures of performance are clear, consistent, fair, and equitably applied. All employees should have the opportunity ' to excel. Unions would have to be willing to allow members to shoulder the responsibility for turning in a job performance that merits an increase in pay -- and be willing likewise to allow some members not to receive an increase. Other options include increasing the availability of unpaid leaves, opportunities for part-time work with health benefits, job - sharing, or work at home. It may also be in the best interest of public employee unions to become involved in attempts to balance local government salaries with those in the private sector. Failure to address significant disparities in local government and private sector salary structures will breed increasing levels of taxpayer discontent. Minnesota taxpayers may opt to register their discontent at the ballot box. Forcing government cost containment through the election of 55 candidates committed solely to reducing government spending could result in significant public sector employee layoffs and critical reductions in public services. CONCLUSION To be successful in keeping public sector salaries at least generally in line with private sector salaries, some means must be found to encourage public employees unions, especially those of essential employees, to share the goal of reducing public spending. RECOMMENDATION Develop incentives for public employee unions to participate in cost- containment efforts. Public employees are organized to a much greater degree than private sector employees,. and even more are poised to organize if a salary freeze is imposed. Government will not be able to hold down salary costs without the assistance of employee unions, especially those for essential employees. Part of the problem of high union salaries is historical: earlier generous settlements continue to carry the whole structure forward at a higher level. While it is the responsibility of public employee unions to advocate the best possible salary and benefit settlements for their employees, union officials should also recognize that short term gains won at the bargaining table may result in long term problems for their members. If elected officials and public employee unions refuse to address voluntarily the disparities in private and public sector salaries, Minnesotans may lose confidence in their government structures. As their confidence wanes, they may likely register their dissatisfaction at the voting booth. Throughout the nation, citizens are registering their dissatisfaction with current tax policies by approving ballot initiatives forcing lower taxes, and electing candidates who promise to cut taxes at any cost. These electoral tax revolts may easily be fueled by perceptions of overpaid, unproductive government employees. The consequences of such revolts can be devastating, not only for the local government employees who will lose their jobs, but for the citizens who will lose essential government services as a result of drastic budget cuts. Elected officials and public employee unions should seriously assess the salary disparities that exist between the public and private sectors. They should agree on a long-range strategy for addressing the disparities that exist. By slowing the growth of public sector salaries that are clearly out of line with the private sector, disparities between the two should begin to disappear. 56 MINNESOTA'S 1991 Property Tax Cha A Citizens League study just released found that Twin Cities homeowners saw a sign! year as a percentage oLJJ1jir home's value, which is perhaps the best bottom-line pit t jump in property taxes this of property taxes paid. Last year the median tax on the average -priced home among 95 metropolitan communities was 1.08 percent of value. In 1991, that median tax was 1.17 percent, for a real tax rate increase of about 8 percent., That was the largest increase in five years, attributable in large part to school district increases approved by voters in 'special referenda. Otherwise, the annual Citizens League report contained few surprises. The medifan property tax increase on a $90,000 home, which is near the average for the Twin Cities as a whole, was $121. The survey found that tax rates on a $90,000 home in non -metropolitan cities are similar to Twin Cities rates, but actual taxes are much lower outstate because home values are typically about half of the Twin Cities average. Metro area cities above Metro area cities above Non -metro area cities 2,500 Pop.., 2,500 population (cont.) above y0,000 population Taxes on Taxes on Taxes on $90,000 home $90,000 home $90,000 home Percent of Percent of Percent of 1991 $90,000 Rank 1991 $90,000 Rank 1991 $90,000 Rank tax Price tax Price tax Price " Afton $ 839 0.93% 94 Maplewood $1,218 1.35 5 -Albert Loa $ 973 1.08% 17 Andover 963 1.07 74 Medina 854 0.95 91 Austin 1,361 1.51 1 Anoka 1,078 1.20 37 Mendota Heights 860 0.96 90 Bemidji 1,198 1.33 2 Apple Valley 988 1.10 70 Minneapolis 1,148 1.28 13 Brainerd 940 1.04 22 Arden Hills 1,066 1.18 43 Minnetonka 1,071 1.19 40 Cloquet 1,102 1.22 7 Bayport 1,034 1.15 54 Minnetrista 936 1.04 78 Duluth 1,139 1.27 4 Belle Plaine 1,111 1.23 23 Mound 998 1.11 69 Fairmont 886 0.98 25 Blaine 1,035 1,15 53 Mounds View 1,213 1.35 6 Faribault 1,056 1.17 11 Bloomington 1,001 - 1,11 68 New Brighton 1,155 1.28 12 Fergus Falls 1,068 1.19 9 Brooklyn Center 1,048 1.16 47 New Hope 1,112 1.24 22 Hibbing, 1,012' 1.12 15 Brooklyn Park 1,158 1.29 11 New Scandia Twp. 921 1.02 85 Hutchinson 1,120 1.24 6 Burnsville 965 1.07 72 Newport 1,124 1.25 18 Mankato 1,021 1.13 13 Champlin 1,093 1.21 28 North Oaks 934 1.04 80 Marshall 953 1.06 19 Chanhassen 1,031 1.15 55 North St. Paul 1,144 1.27 14 Moorhead 1,024 1.14 12 Chaska 1,106 1,23 27 Oak Grove Twp. 1,015 1.13 63 New Ulm 942 1.05 21 Circle Pines 1;081 1.20 34 Oak Park Heights 1,024 1.14 58 North Mankato 968 1.08 18 Columbia Heights 1,067 1.19 42 Oakdale 1,054 1.17 45 Northfield 1,127 1.25 5 Columbus Twp. 923 1.03 83 Orono 965 1.07 73 Owatonna 1,000 1.11 16 Coon Rapids 1,041 1.16 52 Osseo 1,087 1.21 31 Red Wing 902 1.00 24 Corcoran 936 1.04 79 Plymouth 1,031 1.15 56 Rochester 1,013 1.13 14 Cottage Grove 1,106 1.23 26 Prior Lake 1,091 1.21 29 St. Cloud 1,067 1.19 10 Crystal 1,143 1.27 15 Ramsey 955 1.06 76 Virginia', 915 1.02 23 Dayton 1,107 1.23 25 Richfield 1,060 1.18 44 Willmar', 1,153 1.28 3 Deephaven 1,017 1.13 61 Robbins al 1,121 1.25 19 Winona'. 951 1.06 20 Eagan 920 1.02 86 osemount Worthington 1,087 1.21 8 East Bethel 941 1.05 77 Roseville 1,174 1.30 10 "Ranked 1 (high) to 25 (low). Eden Prairie 1,113 1.24 21 St. Anthony 959 1.07 75 Edina 928 1.03 81 St. Louis Park 1,081 1.20 33 Excelsior 1,185 1.32 8 St. Paul 1,244 1.38 3 Falcon Heights 1,120 1.24 20 St. Paul Park 1,046 1.16 48 Farmington 1,053 1.17 46 Savage 1,089 1.21 30 Forest Lake 913 1.01 88 Shakopee 1,083 1.20 32 Forest Lake Twp. 919 1.02 87 Shoreview 1,213 1.35 7 Fridley 1,007 1.12 65 Shorewood 1,026 1.14 57 Golden Valley 1,075 1.19 39 South St. Paul 1,002 1.11 67 Grant Twp. 847 0.94 93 Spring Lake Park 1,019 1.13 60 Ham Lake 1,004 1.12 66 Spring Lake Twp. 922 1.02 84 Hastings 924 1.03 82 Stillwater 1,013 1.13 64 Hopkins 1,076 1.20 38 Vadnais Heights 1,233 1.37 4 Hugo 1,043 1.16 51 Waconia 1,130 1.26 17 Independence 1,020 1.13 59 Wayzata 1,045 1.16 50 Inver Grove Hts. 1,079 1.20 36 West St. Paul 837 0.93 95 Jordan 1,070 1.19 41 White Bear Lake 1,258 1.40 1 Lake Elmo 898 1.00 89 White Bear Twp. 1,110 1.23 24 Lakeville 1,017 1.13 62 Woodbury 1,080 1.20 35 Lino Lakes Linwood Twp. 1,178 849 1.31 0.94 9 92 'Ranked t (high) to 95 (low). Little Canada 1,256 1.40 2 Mahtomedi 1,045 1.16 49 - Maple Grove 1,138 1.26 16 (To calculate, enter ! twice) BUDGET AND YEAR-TO-DATE REPORT MIN1NESOTA EXTENSION SERVICE-RENVILLE COUNTY Year to date: 6/26/I990 OPERATING EXPENSES Equipment pur/rep Supplies Telephone Postage TOTALS COUNTY OTHER TOTAL EXPENSES PROJECTED iSGCiRfIDR70TinN FIMInC ill (Mi Tn nnTC rea r,►irc na m,rc $427.00 $427.00 $214.39 $212.61 �', r . $107.00 $2,834.00 4i'�i $667.19 1-1,499.62 $3,427.00 $3,427.00 $1,625.74 $1,801.26 $175.52 $4,427.00 $4,427.00 $2,342.81 $2,084.19 $-2`.,8.62 $11,008.00 $107.00 $11,115.00 $6,349.75 $4,765. J $-I,J8;.72 44 COUNTY OTHER TOTAL EXPENSES PROJECTED iSGCiRfIDR70TinN FIMInC ill (Mi Tn nnTC rea r,►irc na m,rc $427.00 $427.00 $214.39 $212.61 $2,727.00 $107.00 $2,834.00 $2,166.81 $667.19 1-1,499.62 $3,427.00 $3,427.00 $1,625.74 $1,801.26 $175.52 $4,427.00 $4,427.00 $2,342.81 $2,084.19 $-2`.,8.62 $11,008.00 $107.00 $11,115.00 $6,349.75 $4,765. J $-I,J8;.72 EXTENSION COMMITTEE $2557. 00 $ 557.00 $48.00 $209.00 PROGRAM EXPENSES $2,980.00 $1,586.00 $4,566.00 $1,261.32 $3,304.68 $2,043.36 FIELD EXPENSES C. E. A., AG $1,877.00 C. E. A. HE $1,677.00 C.E.A. 4-H $1,727.00 TOTAL $5,281.00 $1,877.00 $1,051.09 $825.91 $-26.18 $1,677.00 $11045.60 , $631.40 $-414.20 $1,727.00 $721.42 $1,005.58 '', $284.16 $5,281.00 $2,818.11 $2.462.89 $-355.22 AGENTS SALARIES Alternative Fundin $39,186.00 $39,186.00 $19,593.00 $19,593.00 JtLKt1HK1t5 SHLHHILS Full time $16,127.00 $16,127.00 $6,716.65 $9,410.3 $2;693.70 Additional secretarial 5ery $9,000.00 $9,000.00 $3,701.75 $5,298.25 '$1,586.50 PERA, etc. $5,255.00 $5,255.00 $5,255.00 TOTAL $30,382.00 $30,382.00 $0,418.40 $19,9633.60 $4,290.20 IsThis report Is derived from estimated figures, sent of which art ittachedxa ESTIMATED CASH FLOU CHART It AS MONTHS ARE COMPLETED ACTUAL FIGURES REPLACE ESTIMATES ts ted 9130192 GENERAL FUIO - FUND 101 e real Koothee Be9iaaf09 8al(tash i lave taeats) 733,465.% 710,751.04 616,150.44 520,658.51 390,126.e8 308,585.05 233,057.01 1,154,003.12 1,177,561.60 668,730.58 491,150.66 279,040.15 4ecurr At Korth 1 Actual Previous K/E Balance;!HMMKR 1992 BUDGET 3AMJfWY 1992 FERNY 1991 MACH 1992 APRIL 1992 KAY 1992 31RC 1992 JULY 1992 AUGUST 1942-SETMBER------- 1942OCTOBER 1992 -------- 1992 DECEMBER 1992 ............. ..... ... ......... C Inflows: 1 Tate (31010-31040 1,347,402.00 0.00 ' 0.00 0.40 7;523.3] 8,532.00 0.00 721,129.% 0.00 0.00 0.00 0.00 673,701.00 2 Gravel Taxes (31710 4,300.00 000 0.00 0.00 3•,649.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 franchise ales !31010 20,000.00 0.00 0.00 21,642.40 0.00 0.00 0.00 0.00 0.00 0.00 6.00 6.00 6.00 4 ticenE (32110-32160132240 15,200.00 2,200.00 915.00 %5.00 1,045.00 605.00 1,650.00 580.00 $50.00 561.50 1,166.67 1,266.61 1,266.67 S Permit 32210-32 Less 32240 200,600.00 15,939.33 20,854.95 27,770.35 24,401.16 19,183.11 25,770.95 14,115.0! 23,376.35 39,649.60 16,716.67 16,116.67 16,716.67 6 State Ads 2299((8q33141-33630 913,614,00 0.00 10,777,50 0.00 • 0.00 0.00 0.00 436,234.50 54,210.00 0.00 0.00 0.00 456,807.00 1 Chas for Serv)tK (34102-34107 00,100,00 10,973,66 18,612.64 18,019.48 14,208.95 13,364.20 •11,697.98 19,261.71 24,659.33 10,998.12 12,306.33 12,308.33 12,306.33 8 Part Revenues (34720 31790 %,700.00 10,120.23 1,450.20 1,346.04 20,415.00 1,9p.7S 2,513.46 ],380.25 9,062.44 2,510.71 8,058.33 8,058.33 8,058.33 9 Court fines (35101 50,000.00 0.00 4,174.10 3,192.33 3,472.23 0.00 7,214.79 0.00 10,383.98 3,330.53 4,166.6] 4,166.67 4,166.67 l0 Spec Assessment 36101 136102 18,000.00 0.00 0.00 0.00 196.46 0.04 0.00 23,081.69 0.00 0.00 1,500.00 1,500.00 1,500.00 11 Interest Eagi 36210136215 38,000.00 1,146,85 2,364.38 2,138.99 2;451.9! 1,090.17 971.32 2,043.61 1,276.23 1,636,68 3,166.67 3,166.67 3,166.67 l2 Other Revnu ( ,30 60 39101 30,513.50 SOS.OS 7,315.97 576.40 3,608.67 15,930.89 491.17 16,553.66 (12,302.75) 2,509.67 2,542.79 2,54279 2,542.19 l3 Transfer from ((39203 162,250.00 0.00 0.00 0.00 17,250.00 51,6%.91 0.00 0.00 0.00 0.00 40,000.00 40,000.00 0.00 14 Trans from Port Authorty(39M] 50,000 00 0.00 0.00 0.00 0.00 000 50 000 00 000 000 000 0 OD 000 000 1S Trios Prem Hods Ra'td- 39109 70,192 00 _ 0.00 0.00 0.00 0.00 70.92A - 0.40 000 _ Q 00 0.90 000 __ 000_ _ 000 16 Plan Asst Loan Proceeds 39310 521500.00 0.00 35,325.00 17,175.00 0.00 000 000 000 000 000 000 000 0.00 __....... _._ ........... ............. ............. ............. ............. ............. ........... ............. ------------- ---- ------- ----•• --- - ............. 3,217,371.50 41,185.12 102,409.74 98,626.03 128,733.35 183,008.14 106,435.17 1,252,980.39 111,415.58 61,203.42 89,726.13 89,726.13 1,180,234.13 cash outflow: 1 Council 41110 102,058.00 4,244.47 2,214.82 71013.50 4,492.56 41614,29 14,038.58 13,185.66 5,341.48 18,710.07 8,504.83 8,504.83 8,504.83 2 Administration 41320 167,219.00 8,898.29 13,907,79 18,512.88 10,968.90 10,899.04 11,322.07 13,99770 12,949.5] 20,192.96 15,601.58 15,601,58 15,601.58 3 Clerk 41400 53,996.00 2,261.% 3,462.90 6,791.82 5,695.12 4,575.04 3,729.35 3,941.91 3,967.63 6,284.85 4,499.67 4,499.67 4,499.67 4 Elections ' 41410 14,019.00 0.00 0.00 125.00 1,427.75 0.00 0.00 2,063.94 1,021.95 2,605.22 0.00 5,000.00 0.00 5 jingnnCc}} 41520 130,645.00 5,439.06 11,1]7.06 12,075.56 8,706.97' 11,623.02 7,618.01 9,32378 9,226.47 11,776.02 10,887.08 10,887.08 10,887.08 6 ermrment 41810 156,307.00 3,887.49 8,119,71 3,588.53 19,435.01 36,388.19 12,643.94 15,224.11 7,573.71 22,123.72 13,025.58 13,025.58 13,025.587 naiag 41910 . 161,804.00 4,)89.88 10,137.93 10,434,65 9,165.8( 10,574.56 11,29).63 11,886.50 18,188.83 19,562.06 13,483.67 13,483.67 13,483.67 8 erneat 8uildiags 41940 59,700.00 11082,41 7,946.06 3,80772 5,554.00 4,984.42 5,750.90 5,581.39 4,983.58 18,204.91 4,915.00 4,915.00 4,9)5.00 9 Pglice 41110 725,600.50 33,$23,73 48,212.06 68,862.85 52,987.26 48,482.11 49,133.76 69,908.28 $1,902.57 70,719.88 60,466.71 60,466.71 60,466.71 10 Fire 41210 154,033.00 1,675,13 1,602.28 2,340.26 4,295.67 47,041.76. 1,644.77 10,001.62 3,276.02 6,116.26 4,581.08 $4,111.08 4,581.08 11 Public Uorks 43100 623,093.00 29,481.26 41,813.07 54,868.90 54,408.40 • 43,256.58 51,680.68 54,24176 48,632.51 66,907.79 51,991.08 51,991.08 51,991.08 12 Paved Streets 43121 5$1100.00 0,00 67.37 0.00 1,682.94 2,058.60 4,819.47 2,527.47 4,898.00 19,286.22 4,591.67 4,$91.67 1,591.67 13 Unpaved Street 43122 15,600,00 331,45 454,38 0.00 495.36 3,666.92 770.00 172.06 579.94 934.72 1,300.00 1,300.00 1,300.00 14 Ice 1 Snow Removal 43125 13,380.00 2,082.86 1,098.09 854.24 0.00 0.00 0,00 0.00 0.00 0.00 2,230.00 2,230.00 1,230.00 15 Street Lighting 43160 46,900.00 2,832.80 1,549.40 3,420.14 6,305.47 3,578.78 3,096.11 6,111.46 5,390.33 5,687.38 3,908.33 3,908.33 3,908.33 16 Signal Lights, Signs 43170 6,300.00 0.00 90.32 427.68 190.08 410.20 91.13 329.19 137.60 421.16 $25.00 525.00 525.00 17 Park 1 Rec 4SI00 560,817.00 23,034.97 34,439.48 42,463.03 42,831.30 37,708.87 39,483.69 70,455.66 38,281.65 $2,604.39 46,734.75 46,734.75 46,73475 18 Insurance 49140 150,000,00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 113,183.53 20,901.50 20,000.00: 0.00 0.00 19 General Fund Transfers 49300 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ..�__..,_.-_ -•----• ------------- --- ------------- ............. -------------------------- ------- ---- *------------ ............. 3,217,371.50 123,566.76 186,992.13 235,616.76 228,642.60 269,862.98 211,120.09 289,662.55 329,585.37 361,639.12 267,306.04 301,836.01 241,306.0/ LI Ilities of Gem'l not avallaill fol spending(actuil amounts from pr vlous month): I Accounts Payable 20200 (!$,275.30► (7,938.60) {6,568.60 (5,950.00) (5,950.00) (51950.00) 363.27 0.00 0.00 0.00 0.00 0.00 2 Dakota CL; Recycling Progr 20204 0.00 0.00 ((2,866.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 8uildiea Permit Surcharge 20810 (!0,%1.52 ((2,915.12 4,733.78 (5,862.57 (6,815.62 8,167.17 (9,699.10 (2,904.22 (5,404.02 (5,404.02 (5,404.01 5,404.02 4 Karo SAC 20815 11 900.04 (23, 00.00 (46,900.00 (3),!00.00 (46 900.00 (� 100.00 (35 000.00 (106,960.00 (128, 00 (128,660.00 (128,660.00 (1 00 5 F ectr(c Permit Surcharge 20820 (224,00 39.00 67.50 186.50 (119.50 (160.00 {178.00 ((58.00 81.50 (81.50 (81,50 81.50 6 Electrical imrpector Fee 20835 (9 443.62 (9, 99.62 (12, .42 (12 283.2? (12 918.90 (27 952.10 (24 791 90 (17,114.30 (33 614.00 (33 614.00 (33 614.00 (33 14.00 7 P willing Permit Surcharge 20030 141,62 20.00 53.50 ()40.?5 ( 60.18 (181.59 (208.29 (58.44 163.39 (163.39 ' : (163.39 1174.61 163.39 8 Sewer Permit Surchargaee 20650 109.50 14.50 28.00 (((43.50 ( 50.50 (j59.00 (68.50 (264.69 281.19 281.19 (((281.19 281.19 9 Sewer Cty Recording FeK 20855 15S.60 22.75 $5,15 (720.88 (233.88 111295.38 2322.45 ( �6°7.]4 1174.61 1174.61 114.61 l0 WAC �rmlt $,ichafge 20860 11 Payroll tl�ilttiK (2 701-21140 9,938.68 (0, 41.51 (b, 11.10 j9,7]3.07 326,90 969.47 710.09 ( 2.44 )73.95 173.95 ))3.45 )13.95 l2 VensmaanEmmeetDeposit 22205 3,121.90 3,121.90 3,12!.90 (3,205.% (3,205.96 (3,205.96) (3,205.96 (3,205.96 (3,205.%� (3,205.961 (3,205.96] (3,205.%� 13 Chelsea Est Easement Mat 222% 9,002.03 9,002.03 9,002.03 39,002 03 19,002.03 19,002.03) 119,002.03 (4,543.63 19,543.63 119,543.63 19,543.63 19,543.63 14 USPCI Deferred Revenue 22201 8,479.46 ,050.40 9,535.52 3,011.38 3,021.38 33,021.38 x3,264.38 0.00 0.00 0.00 0.00 0.00 15 O Leary's Deferrement 22208 2,103.45) 2,103,45) 2,103.45) (1,122.16) (2,122.16) (2,122.16) (2,139.49) (2,139.49) (2,139.49) (2,139.49} (2,139.49) (2,139.49) 16 Koch Bauxite Deferred Rev 22209 2,035.30 1,035.30 2,035.30 2,035.30 2,035.30 2,0]5.30 2,035.30 2,035.30 0.00 0.00 0.00 0,00 It Inciaerator0eferredRev 22110 (!3,536,])) (13,536.77} (13,536.71) (13,536.77 (13,536.77 (13,53677 (13,536.71 (13,536.77 (13,536.71 (13,536.17 (13,536.77 (13,53671 t8 fire Dept Deferred Revenue 21220 0.00 0.00 0.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 `t1,000.00 ((1,000.00 ((1,004.00 1,000.00 19 fire epE. Deferred Reveue 22221 (1 400.00 (2900.00 2,900.00 ((3,316.50 3,207.48 3,157.98 3,157.98 3,15].98 (2 ]07.16 (2 701 I6 (2 701.16 2 701.16 20 Police Deferred Revenue 22222 (900.00 (900.00 €€1,056.33 (t 056.]] 1,056.33 �I,OS6.33 1,056.33 1,056.33 ( (270.53 (((214.53 ((170.53 ((220.53 221 2 f/I IT 8 Resseervedefor(228I0 244052126 (9,415.571 (9(,415.571 (6,214.311 (6,178,46 6,069.50 ((6,063.46 6,081.55 5,e%.01 - (5,990.22 (5,0990.22 (5,990.12 (5,990.22 ............. ............. ---- --. ..-------_... ........... _...........• ------------- - ------------- - -- • - - •-- - --- - j (78,503.60) (65,819,12) (109,176.62) (76,101.521 (78,920.23) (114,987.88) (77,026.49) (178,331.20) (208,39S.52) (2081395.52) (208,395.52) (208,395.52) Korth--Ead Balance571,580,Si 560,368.93 370,173.09 344,641.80 224,351.61 81,911.25 1,119,348,36 757,502.13 668,730.58 491,150.66 279,040.75 1,211,90.83 - is for October thru December do 'NOT' take qff tj llibllity total again - otherwise the effect is duplicated!!! tit sit Prior to that, make sure liability total is in: uded to month -End balance ti✓ _ CITY OF ROSE MOUNT CASH ON HAND REPORT September 30, 1992 FUND FUND DESCRIPTION FUND I CASH ON HAND INVESTMENTS TOTAL FUND DESCRIPTION A 401 CASH ON HAND` 2,033.54 INVESTMENTS 60,000.00 ` TOTAL 62,033.54 General Fund 101 (172,119.76) 994,889.08 822,769.32 183,771.03 Cty Rd 942E -Prof 0164 Hawkins•Pond-Proi 1176 402 14,267.14 0.00 14,267.14 Paid-up Debt Sery Bond Fund 102 13,771.03 170,000.00 239,756.62 257,394.46 Westridge 4th Addn-Proj 9223 403 123,222.46 0.00 123,222.46 Port Authority Fund Fund 201 202 17,637.84 (12,269.81) 1,050,000.00 1,037,730.19 Shannon Hills 3rd Addn-Proj 1225 404 78,181.99 0.00 78,181.99 (57,342.47) S -Year CIP Program Capital Projects MSA Fund 203 978 8,.04 160,000.00 168,978.04 Hwy 03 Realignment-Proj 9226 405 406 (57,342.47) (2,667. ) 0.00 0.00 (2,667.81) .r Severance 5 Retirement Fund 204 4,523.99 20,000.00 24,523.99 O'Leary's 5th Addn-Proj 9231 Shannon Hills 4th Addn-Proj 0234 407 (890.4444) 0.00 (890.44) Park Improvements Fund 205 18,145.28 140,000.00 158,145.28 0.00 Chippendale to 160th-Proj 0191 408 38,121.01 220,000.00 258,121.01 .. Nat'l Guard Armory Proj Fund 220 0.00 44,578.28 0.00 0.00 44,578.28 Shan Pkwy N oTDalmaLion Proj 0194 409 0.00 (4,135.99) 0.00 0.00 0.00 (4,135.99) Shannon Park Protect Fund 221 0.00 0.00 0.00 0.00 Section 31 Trunk Sewer-Proj 0233 145th Recon -Cameo to S/P-Proj 9235 410 411 0.00 0.00 0.00 Diamond Path Project Fund 230 0.00 7,906.55 0.00 60,000.00 62,9D6.55 --Vslley-oak Pond 1197 _ 412 44,197.55 (415.53) 470,000.00 0.00 $14,197.55 - _,384.56) 0.00 0.00 0.00 Armory Sanitary Sewer-Proj 1236 Water-Proj 1237 413 414 (4,384.93) 0.00 (4,384.93) Debt Sery Sirens - 1981 302 0.00 0.00 0.00 Armory 0.00 0.00 0.00 .. y Debt Sery City Hall - 1986 303 8,254.77 40,000.00 20,000.00 48,254.77 25,037.81 145th St W Recons19 truction-Proj 1206 416 4,199.53 0.00 4, .53 0..00 Debt Sery Equip Cert - 1991C 304 5,037.81 0.00 0.00 0 --Proj 0.00 0.00 0.00 0.00 0.00 0.00 " " 160th SE Watermain EXt00 9213 418 18,670.2' 0. 18.670.22 Debt Serv, G.O. Impr - 1992A 321 0.00 0.00 0.00 Diamond Path Impr-Proj 1212 42'Sig Light-Proj 0220 419 420 186,057.60 10,949.92 200,000.00 0.00 386,051.60 10,949.92 Debt Sery G.O. Impr - 1980 322 0.00 0.00 0.00 0.00 0.00 Shan Pkwy b Shannon Hills 2nd Addn-Proj 9216 421 0.00 0.00 0.00 Debt Sery G.O. Impr - 1980C Debt Sery G.O. Impr - 1985A 323 324 0.00 9,071.32 130,000.00 139,071.32 Country Hills 4th Addn-Proj 1221 422 17,983.45 8,503.53 20,000.00 430,000.00 37,963.45 438,503.53 Debt Sery G.O. Impr - 1987A 325 12,626.58 2,910,000.00 2,922,626.58 Water Utility fund Sewer Utility Fund 601 602 11,778.35 180,000.00 191,778.35 ` Debt Sery G.O. Impr - 19888 326 10,609.36 1,690,000.00 1,700,609.36 Storm Water Utility Fund 603 13,135.35 40,000.00 53,135.35 Debt Sery G.O. Impr - 19698 Impr - 1991A 327 328 172.30 26,117.49 1,230,000.00 210,000.00 .1,230,172.30 236,117.49 Water 8 Sewer CIP Program Fund 604 15,578.70 100,000.00 115,578.70 1,024,431.31 Debt Sery G.O. Debt Sery G.O. Impr - 19918 329 (7,320.75) 0.00 (7,320.75) Water Hook-up Core Fund 605 15,431.31 22,004.8.3 1,009,000.00 1,019,000.00 1,041,004.83 0,00 0,00 0.00 0.00 1,095.92 Sewer Hook -Up Core Fund Storm Water Connection Fees fund 606 607 25,854.93 340,000.00 365,854.93 Debt Sery Tax Increment -1988A 382 1,045.92 0.00 0.00 0/5 Water Bonds - 1971 610 0".00 0.00 0.00 0.00 0.00 0.00 D/S Well 17 - 1975 G.O. Bonds - 1989A 611 612 0.00 14,062.66 0.00 0.00 0.00 14,062.66 0.00 0.00 0.00 D/S Rev Water D/5 G.O. Rev Storm Water - 14928 613 1,563.07 0.00 1,563,07 0.00 Birger Pond Project 620 2,000.00 320,000.00 322,000.00 0.00 -0.00 Meals on Wheels Agency Fund 801 3,011.09 0.00 3,811.09 Star City Activities Agency Fund 802 0.00 0.00 0.00 Town Green .Committee Agency Fund 803 164.92 0.00 164.92 TOTAL 593,752.19 13,472,645.70 14,066,397.89 t As of September 30; 1992, MONTHLY REVIEW AUDIT OF CIP CODING AMOUNTS 1992 CIP BUDGET x-1992 CIP Budget --Departments to Use Following Encoding -202 -49002 -01 -(XXX):: _ �..°ITEM BUDGET = :OBJECT CODE . SP TO DATE BmIANCE -------------- DEPARTMENT- ------ ---- ---------------------- ----- PC Replacement Program. ... ---ENT :---------- :----------- ------------ : 15,400 : 586 ' $20,350.54. ($5,350.54) .- Finance_ ------------------------------ - 8 _ _��_----- 8---------------- 8 8 8--------------- H T k ** . 40 000 550 $18 021.60 $21,978.40 :Fire ------------------------ City Hall Furniture -Police 6,000 570 $5,857.46 : $142,54 : Gen'l Govt 1- ------------------------------- 12 ---------- 12 ----------- 12 --------------- 12 --------------- 12 -------------- Election Equipment : 91000 585 $8,797.59 $202.41 . Gen'l Govt - - -- ---------------------14----MN_14------------14---------------14-------------14-------------- a Benches & Small Shelters -Parks : 51000 581 : $0.00 : $5,000.00 : Park & Rec ------------------------16----------16-------------16------------- 16-----{----------16--------------- - Town Green Area 12,000 : 530 $200.00 : $1,800.00 : Park & Rec ------------------------------18----------18------------18---------------18---------------18--------------- JC Park Gen'l Improvements : 60,000 : 531 $50,830.21 : ($830.21) : Park & Rec --------;------------------ -- ---------20--------------- JC Park Shelter : 100,000 521$5,956.96 $94,043.04 : Park & Rec ------------------------------22----------22---------- 22---------------22---- ----------22--------------- JC Rink & Lighting 25,000 : 532 $427.50 : $24,572.50 : Park & Rec ----------------------------- 24----------24------------24---------------24------------24------- ----- JC Park General Lighting 35,000 : 533 : $0.00 : $35,000.00 : Park & Rec ------------------------------ 26 ---------- 26 ------------ 26 --------------- 2b ---- ----------- 26--------------- Gen'1 Improvements -Shannon Prk : 15,000 : 534 $0.00 : $15,000.00 : Park & Rec ------------------------------28----28---------28---------------28---------------28--------------- Lawn Mower. -Parks. ** $8,454.00 : $3,546.00. : Park & Rec -�2000582 -----------------------------30----------30------------30---------------30---------------30-----=--------- Passenger Van -Parks ** : 17,000 : 551 $16,986.49 : i $13.51 : Park & Rec ------------------------------ 32 ---------- 32 ------------ 32 --------------- 32 ---- �; ----------32--------------- New Pickup Truck -Parks ** : 17,000 : 552 $0.00 : $17,000.00 : Park & Rec ------------------------------34----------34------------34---------------34--------------34--------------- Park Vacuum ** : 25,000 : 540 $8,958.00 : $16,042.00 : Park & Rec ------------------------------36----------36------------36---------------36---------------36--------------- GIS Software -Planning 15,000 587 .$0.00 : $15;000.00 : Planning ------------------------------38----------38------------38---------------38---------------38-------- ------ 2 Police Squad Cars * : 28,000 553 $27,972.14 : $27.86 : Police ------------------------------40----------40------------40---------------40----i-----------40--------------- 1/2 Ton Pickup Truck-P/W ** : 14,000 : 554 : $10,956.48 : $3,043.52 : Public Works ------------------------------42----------42------------42---------------42---------------42--------------- 3/4 ton 4 x 4 Pickup-P/W ** : 18,000 : 555 : $19,075.16 ($1,075.16) : Public Works --------------------------- 44----------44------------44---------------44---------------44--------------- Tamper-P/W**: 2,000 : 583 : $2,049.00 ($49.00) : Public Works --------------------------- 4b----------46------------46---------------46---------------46--------------- Paint Sprayer-P/W**: 2,500 : 584 $2,967.00 : ($467.00) : Public Works --------------------------- 48-----'----48------------48--------------- 48---- �- ----------48---=----------- Bob Cat Loader-P/W ** 25,000 541 $18,184.02 : $6,815.98 : Public Works ------------------------------ 50 ---------- 50 ------------ 50 --------------- 50 --------------- 50--------------- $0.00 ------------------------------52----------52------------52--------------------.----------- General Fund Admin Fees 2,250 : 317 $2,250,00 : $0.00 : Admin Fees ------------------------------54----------54------------54---------------54-- -----------54--------------- Certificate-Bonding Costs 0 . 319 $250.00 ($250.00) : --------==-------------------------------------=------- Aerial Truck Repairs(Reserve) • 0 • 537 $8,942.64 : ($8,942.64) -----------------------------------------58--------------- 58----------58----------- 58-------------- 58---- City Hall Roof Repair(Reserve) : 0 : 538 : $0.00 : ------------------------------60----------60------------60---------------60---------------60--------------- • $0.00 : ------------------------------ r ----------- ------------- 62-- 62------------62---------------62---� 62 -- TOTAL : 499,750 : $247,486.79 : $252,263.21 : ------------------------------64---------64------------64---------------64----�-----------64--------------- LESS: Items to be Funded by TOTAL COH 9/30/92 $1,037,730.19 Equipment Certificates(**) 200,500 --------------- Admin Fees(From Reserve) 2,250 Reserves $785,466.98 ---F/B Reserved from 1990 CIP Budget Total Levy for 1992 297,000 Not Yet Spent $122,000.00 ___=====F/B Reserved from 1991 CIP Budget Not Yet Spent $129,194.68 Total Reserves Available 7/1/92 $534,272.30 2nd Half Levy to Receive 12/92 $148,500.00 --------------- Total Projected Reserves by 12/31/92 682,772.30 city of Rosemount [#come Statement-Vater For Month Ending 9/30/92 Y. Januar Februar March April may June July August September- November-- December <,k{ -- -... ----------- - - - -October-- -- .r . '_ -----....._ .,.....-r-- ---------T - ........... Revenue#. Resideatisl Vater(37110) - $Actual$ 199,928.08 (266.44) 81.10 54,666.90 (13.00) 0.00 73,605.60 (938.52) 161.30 72,629.11 0.00 4.00 0.00 0.00 0.00 !. Apartpest Vetef(37120) - $Actual$ 26,487.00 0.00 0.00 6,990.60 0.00 0.00 10,376.20 0.00 0.00 0.00 0.00 9,120.20 2,731.20 0.00 0.00 0.00 0.00 G;institntional Vater(3712$) - $Actual$ 8,323.50 0.00 0.00 158.60 2,142.20 6,169.35 0.00 161.70 0.00 (350.75) 3,450.10 6,986.50 27.00 330.00 8,863.20 0.00 0.00 0.00 commercial Vater(31130) - $Actual$ industrial Vater(37140) - $Actual$ 22,365.60 3,579.70 0.00 0.00 0.00 1,274.70 0.00 (77.80) 1,178.20 0.00 0.00 1,204.60 0,00 0.00 0.00 penalties - Vater(37160) - $Actual$ S,349,78 2,037.89 (2.49) (20.00) 1,671.74 0.00 (18.45) 3,635.65 (39,17) (1,915.59) 0.00 0,00 0.00 0.00 Other Vater Revenmes(37170)-$Actual$ 0,00 0.00 0.00 0.00 150.00 0.00 1,250.00 0.00 1,150.00 0.00 800.00 0.00 900.00 0.00 $50,00 0.00 950.00 0,00 0.00 0.00 0.00 . 0.00 Vater Neter Hook-Up(37165) - $Actual$ Sales(37180) - lActuale--- 8,300.00 ---ib,M AO ----1,611.00__ 850.00 500.00 950 00 1,125.00 2,37S-.00_ 3,315.00 11545.00 1,710.00 1,200.00 2,016.00 0.00 0.00 -0,00 0.00 -ilalef-Meter Pri#cipal - S/A(36101) - lActuall 8,761.77 0.00 0.00 0,00 0.00 0.00 0.00 8,761.77 0.00 0.00 0.00 0,00 0.00 . 0.00 `- penalties - S/A(36102) - $Actual$ Interest-Isvestmests(36210)-$Actual$ 84.20 10,53$.46 0.00 832.33 0.00 932.06 0.00 1,349.07 0100 1,022.19 0.00 1,707.71 0.00 952.37 84.20 1,034.66 0.00 1,797.26 0.00 907,80 0.00 0.00 0.00 Other interest Rev(36215) - $Actual$ 11027.06 0.00 383.28 36.41 57.22 165.04 56.95 8.51 210.79 108.86 0.00 0,00 0.00 0.00 0.00 0.00 0.00 Contributioas(36230) - $Actual$ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other Reve#ue(36260) - $Actual$ 162.76 0.00 182.76 0.00 0.00 0.00 ............ ----------- ------------ ............ ..--.- ..-- -- Total Revenues ------------- 311,085.91 ----------- 5,068.76 ------------ 3,186.31 ----•------- 74,784.23 ........... 6,544,65 6,519.71 90,932.47 15,123.47 4,211.16 96,615.41 0.00 0.00 0.00 Less: Operatla9 Espeases(All Actual) 6eaeral Operatlas(49400-01) 74,438.56 261.89 2,254.11 3,669.22 13,274.65 5,246.34 2,210.61 18,150.14 22,833.03 5,937.85 0.00 0.00 0.00 Adele Personasl(49400-77) 23,493.34 1,585.23 2,439,03 3,589.73 2,438.96 2,436.93 1,438.91 2,439.14 2,451.79 3,665.56 6,182.53 0.00 0.00 0.00 0,00 0.00 0.00 "'C18ricl Personael(49400-78) 44,741.89 2,824.46 4,488.69 6,471.56 4,546.19 4,064.18 4,731,34 4,066,81 4,975.41 4,084.54 4,715.36 1,091.85 5,190.25 3,549.69 5,941.11 0.00 0.00 0,00 Mai#t perso##ei(49400-79) 38,981.50 2,652.28 4,288,12 6,242.26 0.00 0.00 0.00 0.00 0.00 0.00 P/1 pera0anei(49400-99) Veil 13(49403-01) 0.00 6,396.30 0.00 0,00 0.00 1,517,12 0.00 49.54 0.00 $61.70 0.00 742.05 0,00 752.77 11019.26 994.32 758.47 0.00 0.00 0.00 Veli 16(49406-01) 921.35 31.40 70.59 520.27 112.46 23.66 13.44 $2.42 37.39 59.64 0.00 0.00 0.00 0.00 0.00 ,? r, Veil 17(/9407-01) 8,815.34 0.00 1,561.46 674.08 1,602.72 1,077.61 1,562.82 1,279.53 1,051,12 0.00 0,00 0.00 0.00 ' Well 18(44408-01) 6,915.77 0.00 830.91 882,77 793.65 694.47 873.00 1,162.11 691.17 987.69 0.00 0.00 0.00 Veil 19(49409-01) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 $5.00 0.00 55,00 0.00 0,00 0,00 0.00 Well 810(49410-01) "r 165,00 0.00 0.00 0.00 0.00 0.00 0.00 55.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 veil 111(49411.01) -! Vater lower 11(49415-01) 0.00 673.00 0.00 0.00 0.00 0.00 673.00 0.00 0.00 0..00 0.00 0.00 0.00 0.00 j Vater Tower 12(49416-01) 976.410.00 96.31 84.71 86.86 392.36 ------------ 44.23 -----------'---- 91.52 89.16 - 91.26 ----...-- 0.00 -.., 0.00 0.00 Total 0peratInp Expenses ------------- 206 518.48 ------------- ----------- 7,35S.34 ----------- -••-'---_... 17,546.34 ------------ ............ 12,184.14 ........... 27,538.07 20,092.57 16,955.79 33 612.09 36 954.97 24,279.17 0.00 0.00 0.00 Net Iocome(Loss) - i i 104,567.43 att:asaaa sea: (2,286.56) zzzsasa:: cz (14,360.03) :azz:axza z: 52,600.09 assz:atssssa (20,993.22) zsa::::z:a: (13,573.36) :azs z:sz:as 81,976.68 z:a zza:: zs (18,388.62) ss:z z:zs:::: (32,743.79) zs:z::z sz::z 72,336.14 :z:za:az:z 0.00 zssa aa:a: 0.00 :zszs:zzz:: 0.00 sz:::zvs::a 'F i 1tS j 1 Ff }.t4 1 1 n N O .NO O Y .PO m 6 P P V m N m + u u u m I .tl0 1 0 0 0 0 N O OPD m N m N r P a w V r v O m u + o n 4un I CSD I V +P. .O Om .u- O W N N N Ou0 P 0 0 0 0 N V OUD W u O P • r N 3 2 A z N N N !S O m W N m O v V O i N V v m GD m . .O P P O N O N .O v'mo :.. o. :-o �a O r N r r 6 O V .0 m W P O O N N 6 0 0 mo .a.+aevovou v.o m � vin i o � � o •. n.r I I ano oeo .o o J r N r _IOJ y r N N N m 6.V w N uo N O a 6 6 N N P P P P O P r O m W + v N N N r N Cn N W .O m r O P P 0 0 O 1 V O N m a a W N P v N W O a m a r O O 0 0 0 0 0 0 0 0 0 0 w o 0 0 0 0 o c o 0 0 o 11 0 1 0 1 0 0 0 0 0 0 0 0- O n 0 1 0 1 0 O O g 0 0 0 0 0 O o o o q 0 0 0 0 0 0 0 1 � a V a NN• N V ✓'.• V I N E N N S � V J •ti • O O O m V ',P 0► N V .O P r ; O � i � _ �^� es+a �:-.� � o n o ... 1p e e ^e •'t ... r ao s ` - � r � r r x m w I I tl w C O^ Y N O O Y a- i C O 1P� � O• i A A i 00600',0 OOv00 000 I`K 9 0 0 0 Oa O a 0' O i s "T 0 1• 1 !Y N N tl a a a !•' O 9 ! O -Z.- _• a V I OWOi000vO.NOOON =203 d W W a,►, v s s In -a s d �'� m- yCY � P W C O P G ^ IiJ y V �"• � .D t N i .i-� � v O ^ O V O ma^ A O W V N W I I v • vvvvv v ` � A v r V 1 1 N �' n O • I' .0.. n N O .NO O Y .PO m 6 P P V m N m + u u u m I .tl0 1 0 0 0 0 N O OPD m N m N r P a w V r v O m u + o n 4un I CSD I V +P. .O Om .u- O W N N N Ou0 P 0 0 0 0 N V OUD W u O P • r N 3 2 A z N N N !S O m W N m O v V O i N V v m GD m . .O P P O N O N .O v'mo :.. o. :-o �a O r N r r 6 O V .0 m W P O O N N 6 0 0 mo .a.+aevovou v.o m � vin i o � � o •. n.r I I ano oeo .o o J r N r _IOJ y r N N N m 6.V w N uo N O a 6 6 N N P P P P O P r O m W + v N N N r N Cn N W .O m r O P P 0 0 O 1 V O N m a a W N P v N W O a m a r O O 0 0 0 0 0 0 0 0 0 0 w o 0 0 0 0 o c o 0 0 o 11 0 1 0 1 0 0 0 0 0 0 0 0- O n 0 1 0 1 0 O O g 0 0 0 0 0 O o o o q 0 0 0 0 0 0 0 1 � a V a NN• N V ✓'.• V I N E N N S � V J •ti • O O O m V ',P 0► N V .O P r ; O � i � fw Y I I tl w C � i 00600',0 OOv00 000 I`K V I OWOi000vO.NOOON V r 0. . . of oe. . . O O O W d 0 0 0 W O m O r O O O V O O O O O O m P O O OO O O N V O 0 0 0 0 0 0 0 0 .00 r oo o lP.av0000o 0000 .Mq a N W N a i. . . . N O O O. O N P a 0 0 0 N O O �O U P O O O O V 1 NO O O N • O O O N O O O O O o g o 0 0 0 1 0 0 0 0 o in o0000y oPoaaD0000� N o• o 0 0 0 o uo o- Noo.000� om �+ogogo oom r P r O + r O O O O .O O N tNJ. U •�+ 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . O A i 0 0 0 0 0 0 0 0 o I c .1 A 0 00000000 00 02, _W7 c .1 A 0 00000000 00 : Monthly Report of Investment HoldingsInstitutiony ,= ',h... i' h, -"Y -' 7�'A'� RG �'t Y,�r As of September ,by ,.r 30, 1992Nrx _ +5: •.3 D i+'1r, 51 . Y 3� .. fi sH- Marquette National of AV= Rosemount National.- r: 1st State of Rosemount .-0ate Due Rate Account Aeount :Date Due Rate Account ! -= Amount •Date Due Rate Account I Amount 12/08/92' 3.10.; 58355256 :10/13/92 3.60 1776 $1,200,000 :10/27//92 4.00 64223 $3,205.96 12/21/92 3.05 ` 58355264 _5300,000 $300,000 :10/26/92 3.60 1786 $550,000 Wensmana Addition Cul de sac .:11/09/92 3.33 1792 $1,300,000 The above's initial investant :11/23/92 3.33 1799 $200,000 was 11/1/88 for $2,500. _.. :12/07/92 3.20 1806 $400,000 : Rolled from old rate :12/14/92 3.33 1808 $300,000 : of 5.40 on April 28, 1992 :12/21/92 3.15 1812 $550,000 :08/23/93 3.80 64642 $9,543.63 The above is a Cul.de sac payment for the Chelsea . Estate Plat to be held until Cul de sac is complete :Savings Account set up as an escrow . for Repairs Inc. property lease :09/30/92.(As of) $9,756.62 Totals $600,000 : Totals $4,500,000 : $22,506.21 ------------------------------------------------------------------------------------------------------------------------------ Midway National Rank Metropolitan Federal of Iowa Prudential Securities Date Due Rate Account Amount Date Due Rate ' Account : Amount :Date',Due Rate CUSIP : Amount 10/13/92 3.15 9470208936 $900,000 11/09/92 3.20 17609 $300,000 :10/13/92 3.1S 9470209744 $200,000 :12/03/92 4.10 990002L13R $98,000 12/07/92 3.00 17615 $400,000 :10/13/92 3.10 9470210171 $250,000 :04/15/95 6.00 99O003ZL2R $100,000 12/21/92 2.70 17618 $300,000 :10/26/92 2.90 9470210510 $100,000 :11/09/92 3.20 9470209751 $1,000,004 :11/23/92 3.15 9470209983 $800,000 :12/07/92 3.15 9470210189 $2,100,000 As of :12/14/92 3.00 9470210320 $700,000 06/30/92 Escrow Savings Account set up :12/21/92 3.00 947021012 $600,000 for O'Leary's 4th Addition $2,139.49 :10/18/93 6.25 9470202319 $500,000 Totals $1,002,139.49 : Totals :TOTAL INVESTMENTS $7,150,000 $13,472,645.70 Totals $198,000 I (Pity of (0?osemouni PHONE (612) 4234411 2875 - 145th Street West, Rosemount, Minnesota FAX (612) 4235203 Mailing Address: P.O. Box 510, Rosemount, Minnesota 55068-0510 MAYOR Edward B. Mc Menomy COUNCILMEMBERS Sheila Ktassen James (Red) Staats . Harry Willcox Dennis Wippermann ADMINISTRATOR Stephan Jilk TO: Mayor McMenomy Council Members: Klassen, Staats, Willcox, Wippermann FROM: Linda Jentink, Administrative Secretary DATE: October 27, 1992 RE: Oct. 27 Special Meeting Packet Information A page may have been missing from the resolution outlining non-union full time city staff salary and benefits for 1992. Please find attached the complete resolUtidn. (Sverytkings (90ming (UP Rosemouni11 A CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1991 78 A RESOLUTION OUTLINING NON-UNION FULL'TIME STAFF SALARY AND BENEFITS FOR 1992 WHEREAS, the City Council of the City of Rosemount has reviewed certain salary and benefit adjustments for the non-union full- time city staff; and WHEREAS, the City Administrator has provided supporting information as to recommending salary and benefits adjustments for 1992; and WHEREAS, the City Council has reviewed a proposed policy for implementing annual adjustments and employment step adjustments in 1992 and beyond (this policy is attached as Exhibit "A") along with implementing other benefit changes as proposed by city administration; and WHEREAS, the City Council of the City of Rosemount feels it is appropriate to institute such recommended changes. NOW THEREFORE BE IT RESOLVED, that the salary ranges are to be set for all non-union positions as set out in Exhibit "B" to this resolution, which salary schedule will be implemented as set out in the Salary Adjustment Policy (Exhibit"A" to this resolution), and that the following benefit schedule be adopted for all non- union city staff and will become effectiveJanuary1, 1992: A. Holidays 1. New Years Day 7. Columbus Day 2. Martin Luther King Day S. Veterans Day 3. Presidents Day 9. Thanksgiving Day «4. Memorial Day 10. Friday following 5. Independence Day Thanksgiving 6. Labor Day 11. Christmas',Day B. Vacation: Vacation shall be earned by non-union full-time staff monthly per the following schedule, beginning January 1, 1992: 1st year of employment .67 day/mo (8 days) 2nd thru 3rd yr of employment 1 day/mo (12 days) 4th thru 10th year of employment 1 ; days/mo (18 days) 11th thru 15th yr of employment 1 3/4 days/mo(21 days) 16 and above yrs of employment 2 days/mo (24 days) F C. Vacation Accrual: Full-time non-union city ;accumulate vacation based on years of service to prescribed below. Payment in lieu of vacation a amount listed will not be considered. Ilution 1991 - 78 Page 2 staff may the maximum :creed beyond the 0 thru 4 years of service 20 days (160 hours) 5 thru 10 years of service 25 days (200 hours) 11 years of service and above 30 days (240 hours) D. Compensatory Time: Compensatory time may be accumulated for overtime worked at the rate of one and one-half times the hours worked in excess of 40 hours per week. Compensatory time may accumulate to a maximum of 80 hours. Combined accumulation of compensatory time and vacation will not exceed vacation maximum plus 40 hours. E. Sick Leave: Full-time non-union staff will earn sick leave at the rate of one day per month with no maximum accrual. Sick leave to be available for use as accrued. Buyout Provision: Employees accruing in excess of 60 days (480 hours) of sick leave under this section may: on January 1st only of each year, elect to "sell" those hours in excess of 480, to the city at a conversion rate equal to the percentage figures in Section E. times the hours being "sold" times the employee's then base rate of pay. (Example: Employee John Doe, employed with the city 14 years has 640 hours of sick leave accumulated. His rate of pay is $14.00/hr. He chooses to "sell" 100 hours. The calculation would be 100 x .45 x 14.00 = 630. This would leave him 540 hours of sick leave left. The $630 would be added to his payroll check subject to all taxes, social security, etc. F. Severance Pay: Full-time non-union staff will receive payment at the employee's rate at time of leaving, asprescribed below when leaving the employ of the city in good standing. Vacation: Up to accrued amount Sick`Leave: 1 thru 5 yrs of service, 15% of accumulated sick leave 6 thru 10 yrs of service, 30% of accumulated sick leave 11 thru 15 yrs of service, 45% of unfused sick leave 16 yrs of service and above, 60% of unused sick leave Plus the following when the employee is leaving ''the employ of the City for retirement purposes: 5 thru 9 yrs of service = 2 10 years of service and above = 4 weeks weeks pay pay " Resolution 1991 - 78 Page 3 G. Longevity: After 5 years of service, it of base After 8 years of service, 2% of base After 12 years of service, 3% of base After 16 years of service, 4% of base H. Health insurance: Cost of Basic Plan (1st collar) - loot of employees coverage - 65% of the difference between single employee coverage and the total family coverage.The cost difference between the basic (1st dollar) plan and any optional plans available to employees, will be paid by the employee. I. Life Insurance: The city will pay the cost of: 1. $10,000 Term Life Insurance (Minnesota Mutual Life) , 2. Declining value PERA Life Insurance Plan Any additional life insurance costs for optional plans available to the employee will be born by the employee. J. Dental Insurance: The city will pay the cost of single coverage through a plan approved by the city (1992 cost of $18.20 through Delta Dental Plan). Employee pays any additional cost for employee or dependents. G. Education Reimbursement: The City will pay'100% of all costs of taking a class not to exceed $750 a year for classes approved by Administration and successfully completed. The City will also pay 50% of costs above the initial $750 for classes approved by Administration and successfully completed. Adopted this 3rd day of December, 1991. Ve n J Na er, Mayor ATTEST: 001,Susan M. Walsh, City Clerk Motion by: Napper Seconded by: Voted in favor: Willcox, Wippermann, Napper, Isla Voted against: None