I feel conflicted, we have a great staff in the City of Madison, but . . . seems a little goofy given what is supposed to tight budget times. I’m not necessarily opposed to the raises, but kinda surprised its at this level when cost of living increases for non-profits are never anywhere near that percentage. I think we need a new formula for non-profits more than I think that city managers shouldn’t get this increase. Non-profits have been getting around 1% every other year. You can’t run an organization with those kind of constraints.
TO: Mayor Soglin and the Board of Estimates
FROM: David Schmiedicke, City Finance Director
DATE: January 30, 2012
RE: Ordinance 3.54(6)(c)4 – Compensation of Managerial EmployeesOrdinance 3.54(6)(c)4 requires the City Finance Director to calculate the maximum amount for salary adjustments for managerial employees. The amount is based upon the estimated percent increase associated with longevity and step increases for all employees combined with the percent increase granted to non-represented employees. The combined percentage is multiplied by the total annual salaries of managerial employees to generate a maximum amount for salary adjustments that can be provided to those employees. For 2012, the percentage increase is 4.1% and the maximum adjustment is $121,617.
Calculations
Of the 2,671 eligible City employees, 501 will receive step increases in 2012. Each step increase averages approximately 4% of base pay.
Of the 2,671 eligible City employees, 669 will receive longevity increases in 2012. Those increases average approximately 1.85% of base pay.
The 2011 total wage base for those 2,671 employees is $150,593,578. Therefore:
The 2012 step increases are valued at: $1,063,388
The 2012 longevity increases are valued at: 657,056Total value of steps and longevity increases is: $1,720,444
The value of these step and longevity increases ($1,720,444) divided by $150,593,578 equals 1.1%. The percentage salary increase granted to non-represented employees in Compensation Group 18 for 2012 is 3%.
The total percentage available for 2012 salary adjustments for managerial employees, then, is 4.1%, retroactive to the effective date of the Compensation Group 18 pay increases. The total current salary of managerial employees eligible for an increase is $2,966,273. The maximum amount for salary adjustments pursuant to the referenced ordinances, therefore, is $121,617.
cc: Common Council
