personnel & ompensation summary · personnel & ompensation summary ... from $14.43 to...

Personnel & Compensation Summary C I T Y O F A L E X A N D R I A , V I R G I N I A

The City of Alexandria continues to invest in its workforce in order to recruit and retain the best talent. When excluding debt service, interfund transfers (including to Alexandria City Public Schools for all operating costs) and capital outlays, two-thirds (67%) of the City’s remaining core General Fund operating expenses are utilized for personnel, consisting of salaries and benefits. Salaries are provided for full-time, part-time and seasonal employees, while fringe benefits for qualifying employees include healthcare, retirement, social security, long-term disability, and life insurance.

Other personnel and compensation highlights from the FY 2019 budget include:

• Employees other than those at the end of the pay scale are eligible for a merit-based pay increase ranging from 2.3% to 5.0% of salary grade and step. Approximately $5.0 million is included for merit-based pay increases in FY 2019.

• Since CY 2014, City Council has allocated approximately $4.0 million to fund career ladder elevations within the City’s 27 general scale and public safety career ladders. The FY 2019 Budget includes funding for 58 unique elevations at a cost of approximately $1.0 million per year.

• To support employees as they balance career, childbirth and family life, the budget includes a proposal to provide six weeks of paid Parental Leave to eligible employees, due to the birth of a child, placement of a child through adoption or foster care.

• The budget includes $1.5 million in a non-departmental contingent to enhance public safety recruitment and retention capabilities. This will include a multi-dimensional approach to identify distinguishing characteristics that are positively and negatively impacting the City’s ability to recruit and retain quality public safety employees and then propose a plan of action. The three City public safety work groups will assist management in developing specific proposals.

• The FY 2019 budget includes $186,344 for a Living Wage adjustment of $0.57 per hour, increasing the City’s Living Wage from $14.43 to $15.00 per hour, which is now considered the recognized national Living Wage measure. This includes $92,721 for City employees and $93,623 for service contract employees. This proposal highlights the City’s continued commitment to offer competitive and fair wages that reflect the cost of living for those who are directly employed by or indirectly work for the City of Alexandria.

• In January, the City received Employee Health Insurance renewal rates from Kaiser which maintained (i.e., a 0% rate increase) the current monthly premium per employee and therefore no increase was needed. Similarly, United Healthcare premiums are anticipated to increase only 2.2% based on recent claims experience and the addition of stop-loss insurance. The original salary and benefit projection anticipated a 6.7% increase in health insurance and the difference is reflected in the $1.2 million savings budgeted in Non-Departmental. These costs will be allocated out by department in the approved budget.

FY 2019 INTRODUCTION & HIGHLIGHTS

Personnel

Non-Personnel

Capital Outlay

Interfund Transfers

Debt Service

General Fund Operating Budget Proposed FY 2019

Total $742.25 million

Salaries $153,460,994

Fringe Benefits $75,128,869

Total Personnel $228,589,863

Total Non-P $110,873,241

Grand Total $339,463,104

Personnel 67%

Non-Personnel 33%

General Fund Personnel

General Fund Non-Personnel

City of Alexandria FY 2019 Proposed Budget 10.1


• Compared to FY 2018 Adopted Budget, total retirement for all funds decreases $2.5 million of which $1.4 million occurs in the General Fund. This decrease in retirement is due to various rate changes in the retirement plans offered by the City. For example, Virginia Retirement System (VRS) dip slightly from 7.97% to 7.74% and Other Post Employment Benefit (OPEB) contribution reduces significantly from 4.43% to 0.96%. The Police and Fire Pension and Disability rates also decrease due to better market returns and lower claims experience. These reductions are offset by a significant increase in Line of Duty (LOD) rates which nearly double from 5.21% to 9.93%. This increase is related to a new unfunded state mandate adopted in FY 2018 that requires those eligible for this benefit to be on a State-sponsored health insurance plan instead of a less costly City-sponsored health plan. This increase impacts only sworn public safety and the estimated impact for FY 2019 is an increase of $2.9 million. The FY 2018 budget included the first year of a phased adjustment to the supplemental retirement plan lump sum payment calculation. The adjustment is continued in FY 2019 but at a slower pace than previously.

• On a net basis, the FY 2019 budget includes an increase of 10.43 Full-Time Equivalents (FTEs) overall from the Adjusted FY 2018 count. The FY 2018 count has been modified from the FY 2018 approved figures to reflect mid-year adjustments. This brings the total FTE count for the City to 2,578.09 in FY 2019, which is 71.46 FTEs less than the peak of 2,649.55 FTEs in FY 2009.

• Projects in the Capital Improvement Program (CIP) have grown in scope and complexity over the past several years, to successfully manage the CIP effectively and optimize resources, the City will reallocate 27.80 existing FTEs that are working on CIP projects in the General Fund to the CIP Fund and add 7.10 new FTEs to the CIP Fund. Of the 27.80 existing positions, a total of 20.80 FTEs were reallocated from the Department of Project Implementation’s operating budget to the CIP Fund. Additionally, one existing Capital Project Manager position from the Department of General Services has been reallocated to the CIP and will manage the development of all CIP and capital facilities maintenance project requests for capital improvement work and construction projects, including major modification and construction. Service will also be expanded within the Purchasing Division of the Finance Department by reallocating six Contract Specialist and adding two Contract Specialist positions to support the CIP and shorten the solicitation process for every City departments that has a current or pending CIP project.

• A Public-Private Partnership (P3) position is added to the City Manager’s Office as a follow-up to the Joint City Schools Facilities Investment Task Force report recommending the expanded use of Public Private Partnerships. This position will be responsible for reviewing and analyzing P3 opportunities with the private sector or other governmental entities and then negotiating and helping implement such P3 partnerships. Additionally, an Urban Planner II and III are added to manage, oversee, and monitor workflow, as it pertains to increased City and ACPS capital improvement projects.

• In order to respond to the growing need of improving interagency cooperation and information sharing of court records, an Integrated Justice Program Information Technology Manager position has been added to support the Alexandria Justice Information System (AJIS), which is an internal and external online system for court records. This position will be funded through the CIP with no impact to the operating budget.

• To encourage transit use and vanpooling, and in order to meet the region’s air quality standards, the City will continue to offer its transit incentive program to employees in FY 2019. Regular City employees will be eligible to receive up to $100 per month on a pre-tax basis, unchanged from FY 2018.

FY 2019 INTRODUCTION & HIGHLIGHTS



Federal Insurance Contributions Act (FICA)

This represents the City share of Social Security and Medicare taxes, which is budgeted at $16.0 million for All Funds (excluding Schools) in FY 2019, $11.7 million of which is General Fund related. The current Social Security tax rate is 6.20% of wages, and 1.45% for Medicare. The Calendar Year (CY) 2017 maximum earnings cap stays at the CY 2016 level, $127,200. Earnings above this cap will not be taxed for Social Security, but are still subject to Medicare tax.

Retirement

The FY 2019 retirement budget represents the contribution that the City pays toward employee retirement plans, including the VRS and City Supplemental Pension plan for General Schedule employees, Sheriff’s Deputies, Medics, and Fire Marshalls; and a Police and Fire pension plan for Sworn Fire Fighters and Police Officers. Since FY 2013, the retirement budget also includes the cost of OPEB and Public Safety Line of Duty (LOD). The City’s VRS contribution has been reduced from a rate of 7.97% in FY 2018 to a rate of 7.74% in FY 2019. This decrease is offset by increases in overall employee salaries. The contribution to the Supplemental Pension plan for General Schedule employees and Sheriff, EMT, and Fire Marshalls, increases from slightly to continue to make progress toward fully funding these pension plans. The most significant change in retirement from FY 2018 to FY 2019 is the LOD rate increase from 5.21% of covered salaries to 9.93%. This increase costs the City approximately $2.9 million more in LOD liabilities and is related to the unfunded state mandate adopted in FY 2018 requiring beneficiaries to select more expensive, state-sponsored health insurance plans. Offsetting the various increases are decreased OPEB rates and decreased rates for the Police and Fire pension and Police and Fire Disability plan. The rate for OPEB is decreasing from 4.43% to 0.96% as an offset reduction for the increased cost of LOD of approximately $6.1 million. These retirement rates continue the City’s goal to maintain consistent total contribution rates each year.

The chart below shows the City’s actual retirement costs from FY 2002 – 2017 and the budgeted costs for retirement from FY 2002 – 2019. All City retirement plans, OPEB and LOD are a percentage of salary. Given this, two factors impact the total retirement costs in a given year: 1) the total covered payroll and 2) the percentage rates for each of the retirement plans. Therefore, while contribution rates may remain relatively constant as salaries increase due to annual merits and career ladders, retirement costs will rise even in a year when retirement rates remain the same.

FICA & RETIREMENT

$0

$10

$20

$30

$40

$50

$60

2002 2004 2007 2009 2011 2013 2015 2017 2019

Mill

ions

Retirement Costs

All Funds

Budget

Actual



OPEB & LINE OF DUTY

Other Post-Employment Benefits (OPEB)

This year the City decreased its OPEB contribution rate from 4.43% to 0.96% to fully fund the annual contribution rate (ARC) which covers the current liability. This contribution amount is determined by an actuarial analysis. Making continued pro-gress toward full funding of pension liability has a positive influence on the credit and bond ratings of City issued debt. Other post-employment benefits include retiree healthcare and retiree life insurance. In addition to the current liability, the City has an unfunded liability for OPEB of $57.7 million, which is a decrease of $10.7 million below the prior year liability.

Line of Duty (LOD)

A State mandated, but City-administered program, the Line of Duty Act (LODA) provides benefits to local government em-ployees and volunteers who hold specific hazardous duty positions. More specifically, it requires by State statute the City pay the full cost of benefits for first responders who die or become disabled in the line of duty. Health coverage is provided to the disabled employee, their surviving spouse and dependent children. If disabled, healthcare benefits terminate upon the disa-bled person's death, recovery, or return to full duty. The City currently has an unfunded liability of $25.9 million for LOD.

The City’s FY 2019 contribution increased from 5.21% to 9.93% of eligible public safety employee salaries due to a new un-funded state mandate that requires beneficiaries to select a State-sponsored health insurance plan compared to a more affordable, City-sponsored health plan. The FY 2019 budget provides approximately $2.9 million more in LOD funding, for a total of $6.4 million.


Healthcare

Healthcare represents the share that the City pays for employee healthcare benefits. The chart below shows actual healthcare costs from FY 2010 – FY 2018, and the budgeted amount for healthcare from FY 2010 – FY 2019. For all funds, health insurance costs are anticipated to increase slightly by approximately $786,000, of which $647,000 occurs in the General Fund.

The FY 2019 budget assumes a very low increase to premiums, with an average increase of 1.4%. The anticipated rate increase for United Healthcare plans is 2.22%, but Kaiser plans will remain constant with a 0% rate increase with FY 2018 levels. The budget does not recommend a change to the current employer/employee premium cost sharing formula in which employees pay a minimum 20% share in HMO plans.


HEALTHCARE

$0

$5

$10

$15

$20

$25

$30

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mill

ion

s

Healthcare Costs

All Funds

Budget

Actual



Group Life Insurance Benefit

Regular full and part-time employees are provided basic group term life insurance at one or two times base salary depending on the employee’s date of hire. Long term disability coverage is also provided to benefit eligible employees (excluding police officers and firefighters). Employees also have the option to purchase supplemental group term life insurance coverage and dependent life insurance coverage at their own expense. The table below provides information on the specific coverage available to employees. The FY 2019 budget does not include a rate adjustment for City Paid Basic Life Insurance.

Long-term Disability (LTD)

General Schedule employees hired after January 1, 2014 are typically placed in the VRS Hybrid plan unless they are already participating in VRS from previous employment. The VRS Hybrid plan does not offer disability benefits as part of its core provisions. Since the City of Alexandria has opted out of the VLDP (Virginia Local Disability Plan), this benefit provides a comparable disability plan with equal or greater value.

Paid Time Off (PTO)

City employees are eligible for 11 paid holidays per year in addition to their accrual of annual and sick leave. The table below outlines the rates at which new employees accrue annual and sick leave. The annual leave accrual rate was increased from 3.69 to 4.0 hours per pay period (for full-time employees working 80 hours per pay period) in FY 2010 in order to provide employees with 1 additional day of annual leave. This action was taken in response to a study which found that the City was ranked low in the category of paid time off when compared to our comparator jurisdictions.

LIFE INSURANCE, DISABILITY COVERAGE, AND PTO

Group Life and Accidental Death & Dismemberment Coverage:

Basic - City Funded (hired before 7/1/2009) 2x Annual Salary

Basic - City Funded (hired after 7/1/2009) 1x Annual Salary

Supplemental - Employee Paid 1 or 2x Annual Salary

Line of Duty Coverage:

Police Officers and Firefighters Only - City Funded $200,000

Standard Insurance Company

Holidays 11 Holidays Annually

Annual Leave

New employees accrue 4.0 hours of leave per pay period, totaling 13 days of annual leave earned

per year. For length of service spanning from 1 year to 11 years, the employee earns an additional

day of annual leave per year of service with the City; at year 12 and beyond, the employee reaches

the max of 25 days of annual leave per year, or 7.72 hours accrued per pay period.

Sick Leave All employees accrue 3.69 hours of leave per pay period

*For full-time employees working 80 hours per pay period; prorated for part-time employees.

Paid Time Off*

Long Term Disability*

120 Day Plan - Ci ty Funded

90 Day Plan - Ci ty & Employee Funded

*Rates are effective as of 03/1/2015

Employee Pays 0.10% of Insured Earnings; City

City Pays 0.266% of Insured Earnings



As shown below by Focus Area, the FY 2019 budget includes a net increase of 10.43 FTEs compared to the FY 2018 Amended total, which is a slight increase in the overall City workforce. FY 2017 Amended column adjusts FTEs based on an analysis of actual position counts performed by Human Resources and the Office of Management and Budget. The FY 2018 Amended column shows any FTE changes since the FY 2018 Adopted budget, such as transfers or reclassifications.

CITY WORKFORCE BY FULL-TIME EQUIVALENT (FTE)

FY 2017 FY 2018 FY 2018 FY 2019 FTE Impact

Amended Approved Amended Proposed

Accountable, Effective, & Well-Managed Government

City Council 1.00 1.00 1.00 1.00 0.00

City Manager 14.50 10.00 10.00 11.00 1.00

Office of Management & Budget 11.00 10.00 10.00 10.00 0.00

Performance & Accountability 4.00 3.00 3.00 3.00 0.00

Information Technology Services 56.00 60.00 61.00 63.00 2.00

Internal Audit 2.00 3.00 3.00 3.00 0.00

Communications & Public Information 7.00 8.00 8.00 8.00 0.00

City Clerk & Clerk of Council 3.00 3.00 3.00 3.00 0.00

Finance 104.50 104.50 102.50 103.75 1.25

Human Resources 23.00 23.00 25.00 25.00 0.00

City Attorney 14.00 15.00 15.00 16.00 1.00

General Services 70.60 71.60 71.60 73.60 2.00

Registrar 6.60 6.60 6.60 6.60 0.00

Subtotal Accountable 317.20 318.70 319.70 326.95 7.25

Healthy & Thriving Residents

Community and Human Services 584.65 582.65 585.15 581.45 (3.70)

Health 16.63 16.63 16.63 16.63 0.00

Recreation & Cultural Activities 155.48 152.38 152.40 154.15 1.75

Library 70.36 68.96 68.96 67.21 (1.75)

Subtotal Healthy 827.12 820.62 823.14 819.44 (3.70)

Livable, Green, & Prospering City

Planning & Zoning 45.50 46.50 46.50 48.50 2.00

Project Implementation 24.00 24.00 24.00 24.00 0.00

Transportation & Environmental Services 214.50 212.00 213.00 215.00 2.00

Code 52.62 51.62 51.62 51.62 0.00

Housing 15.00 15.00 15.00 15.00 0.00

Historic Alexandria 26.45 27.20 27.20 27.20 0.00

Subtotal Livable 378.07 376.32 377.32 381.32 4.00

Safe, Secure, & Just Community

18th Circuit Court 13.00 13.00 12.00 12.00 0.00

Commonwealth's Attorney 27.00 27.00 27.00 27.00 0.00

Sheriff 210.00 210.00 210.00 210.00 0.00

Clerk of the Circuit Court 22.00 22.00 22.00 22.00 0.00

Court Services 8.00 8.00 8.00 8.00 0.00

Human Rights 6.00 6.00 6.00 6.00 0.00

Fire 278.00 278.00 277.00 277.50 0.50

Police 425.00 425.00 425.00 427.38 2.38

Emergency Communications 53.00 60.50 60.50 60.50 0.00

Subtotal Safe 1,042.00 1,049.50 1,047.50 1,050.38 2.88

GRAND TOTAL 2,564.39 2,565.14 2,567.66 2,578.09 10.43

*Amended count represents mid-year adjustments. .



The following table shows the reductions (-12.20 FTEs) of positions in the FY 2019 budget.

FTE REDUCTIONS

Note: 1.00 FTE represents a position working full-time at 80 hours per pay period. An FTE less than 1.00 represents a position that works less than full-time. 1This reduction reflects reducing authorized funded positions to historic hiring levels. The Police Department will be authorized to overhire up to 5 Parking Enforcement Officers if they are able to do so.

Department Position

FTE

Decrease

Community and Human Services Administrative Analyst Supervisor -1.00

Community and Human Services Cook -0.25

Community and Human Services Deputy Extended Care Services Director -1.00

Community and Human Services Family Services Supervisor -1.00

Community and Human Services Residential Counselor -0.45

Finance Administrative Support I -0.75

Library Library Assistant -0.25

Library Librarian -0.50

Library IT Support Engineer -1.00

Police Parking Enforcement Officer1 -5.00

Recreation, Parks, and Cultural Activities Regional Program Director -1.00

TOTAL REDUCTIONS -12.20



The following table shows the additions (+22.63 FTEs) of positions in the FY 2019 budget and net FTE change.

FTE ADDITIONS

Note: 1.00 FTE represents a position working full-time at 80 hours per pay period. An FTE less than 1.00 represents a position that works less than full-time.

Department Position

FTE

Increase

City Attorney Assistant City Attorney I 1.00

City Manager's Office Public-Private-Partnership Facilitator 1.00

Finance Contract Specialist 2.00

General Services CIP Project Manager 2.00

Information Technology Services IT Support Engineer III 1.00

Information Technology Services Integrated Justice IT Program Manager 1.00

Planning and Zoning Urban Planner II 1.00

Planning and Zoning Urban Planner III 1.00

Fire Fire Marshall 0.50

Police Traffic Safety Officers 6.00

Police Computer Forensic Examiner 1.00

Police School Crossing Guards 0.38

Recreation, Parks, and Cultural Activities Recreation Coordinator 2.00

Recreation, Parks, and Cultural Activities Recreation Leader III 0.75

Transportation & Environmental Services Laborer II 1.00

Transportation & Environmental Services Equipment Operator 1.00

TOTAL ADDITIONS 22.63

TOTAL REDUCTIONS -12.20

TOTAL ADDITIONS 22.63

NET FTE CHANGE 10.43

FY 2018 AMENDED FTE COUNT 2,567.66

NET FTE CHANGE 10.43

FY 2019 PROPOSED FTE COUNT 2,578.09



In Calendar Year (CY) 2017, overall employee turnover decreased by 12% (from 319 to 280 employees), while a total of 106

employees retired from City service, an increase of 43% from CY 2016. Increased retirement in General Scale employees did

occur in 2017 due to the changing in the lump sum retirement calculations in the Supplemental Retirement System.

CALENDAR YEAR 2017 TURNOVER

GS & PS Full-Time GS Part-Time Overall

Voluntary Turnover 139 22 161

Involuntary Turnover 13 0 13

Retirement 102 4 106

Total Turnover CY 2017 254 26 280

Total Turnover CY 2016 301 18 319

CY 17 Employee Turnover Totals



The following table shows the average annual pay for City full-time and part-time employees:

The majority of current General Schedule full-time employees (nearly 79%) earn between $41,000 and $100,000 annually, with 41% earning more than the average salary for General Schedule full-time employees ($76,038) and 17% earning more than $100,000.

Approximately 49% of all sworn Public Safety employees earn more than the average salary of the group ($76,516); about 13% earn more than $100,000.

SALARY DISTRIBUTION & AVERAGES

As of 2/8/2017 As of 1/4/2018 % Increase

General Schedule (FT) $72.999 $76.038 4.163%

Public Safety (FT) $76.286 $76,516 0.003%

General Schedule (PT) $20/hr* $23/hr* 15.00%

*Due to the nature of part-time work, wages are calculated on an hourly rather than an annual bas is .



General Scale

More than half of the current General Schedule workforce (57%) has been employed with the City for 10 years or less; 14% have worked for the City for 20 years or more .

Public Safety

Similar to General Schedule employees, more than half (53%) of the current Public Safety workforce has been employed with the City for 10 years or less; 20% have worked for the City for 20 years or more.

YEARS OF SERVICE

4 Yrs. or Fewer37%

5-10 Yrs. 20%

11-15 Yrs. 15%

16-20 Yrs. 14%

20 Yrs. or More 14%

Full-Time General ScheduleYears of Service

4 Yrs. or Fewer32%

5-10 Yrs. 21%

11-15 Yrs. 18%

16-20 Yrs. 9%

20 Yrs. or More 20%

Full-Time Public Safety Years of Service



A little over three-quarters (76%) of the City’s workforce fall within the ages of 30 and 59 years old.

EMPLOYEE DEMOGRAPHICS


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