HomeMy WebLinkAboutItem 2e: Resolution 6735: Return of Funds Given Up by Management and Unrepresented Employees to Balance FY 2009-10 BudgetDATE: August 3, 2010
TO: Mayor and City Council
STAFF REPORT
Administrative Services Department
FROM: Hue C. Quach, Administrative Services Director
Michael A. Casalou, Human Resources Administrator
SUBJECT: RESOLUTION NO. 6735 AUTHORIZING THE RETURN OF THE FUNDS
GIVEN UP BY MANAGMENENT AND UNREPRESENTED EMPLOYEES
TO ASSIST WITH BALANCING THE FISCAL YEAR 2009 -10 BUDGET
Recommendation: Adopt
SUMMARY
It is recommended that the City Council adopt Resolution No. 6735 authorizing the
return of the funds given up by Management and Unrepresented employees to assist
with balancing the fiscal year 2009 -10 budget.
BACKGROUND
As the budget process for fiscal year 2009 -10 moved forward, it became apparent the
difficult economic climate would require significant cuts to obtain a balanced budget.
After much deliberation, staff was able to reduce the General Fund shortfall from an
initial amount of $2.6 million to a little under $600,000. At the direction of the City
Council, staff met with all of the City's bargaining groups and obtained agreement from
them on various salary and benefit reductions and deferrements. Executive and
Management employees were also asked to contribute their fair share. As a result of
the salary and benefit reductions agreed upon by all City employees, the City was able
to further reduce the shortfall by approximately $300,000, with $270,000 of that in the
General Fund.
Unexpectedly and due to a variety of reasons, the City was able to achieve a balanced
budget without the need for employee concessions. The City Council is now
recommending these funds be returned to Executive, Management and Unrepresented
employees. The City is currently engaged in contract negotiations with four of the five
bargaining units and is discussing a similar return of these funds.
Mayor and City Council
August 3, 2010
Page 2 of 2
FISCAL IMPACT
Sufficient funds are available in the General Fund reserve accounts to implement the
return of the concession amounts to Executive, Management and Unrepresented
employees.
RECOMMENDATION
Adopt Resolution No. 6735 of the City Council of the City of Arcadia, California,
authorizing the return of the funds given up by Executive, Management and
Unrepresented employees to assist with balancing the fiscal year 2009 -10.
APPROVED:
"P �
Donald Penman, City Manager
RESOLUTION NO. 6735
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA, CALIFORNIA, ESTABLISHING
COMPENSATION AND RELATED BENEFITS FOR CITY
COUNCIL, EXECUTIVE MANAGEMENT, MANAGEMENT
AND UNREPRESENTED EMPLOYEES
WHEREAS, City Council Resolution No. 5608 sets forth various fringe
benefits and related compensation for officials, officers, management and
unrepresented employees of the City; and
WHEREAS, Section 36 of that Resolution provides for amendment and
modification of Resolution No. 5608 (the Fringe Benefits Resolution) by City
Council approved resolutions that direct inclusion of any changes as part of said
Resolution; and
WHEREAS, salaries and benefits for City Council, Executive Management,
Management and Unrepresented employees are adjusted by resolution.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND
RESOLVE AS FOLLOWS:
SECTION 1. Executive Management, Management and Unrepresented
employees shall be given payment by the City in an amount equal to what each
employee deferred to assist with balancing the 2009 -10 City budget.
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SECTION 2. The City Clerk shall certify to the adoption of this
Resolution.
Passed, approved and adopted this day of , 2010.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
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Mayor of the City of Arcadia