HomeMy WebLinkAbout2008/04/03 Item 3
CITY COUNCIL
AGENDA STATEMENT
~f:. CITY OF
-- (HULA VISTA
APRIL 3, 2008, Item .3
ITEM TITLE:
Resolution of the City Council of the City of Chula
Vista eliminating the scheduled fiscal year 2009 cost
of living salary increases for management and
unclassified hourly employees.
SUBMITTED BY:
City Manager So'" -h::: r .fY2. ~
4/5THS VOTE: YES 0 NO 0'
Executive, Senior, and Middle managers are scheduled to receive a 4% salary
increase in January 2009. Unclassified hourly employees are scheduled to
receive a 4% salary increase in July 2008, which was delayed from January 2008,
and a 4% salary increase in January 2009. Due to the financial constraints the
City is experiencing it is recommended that these scheduled salary adjustments
for all management and unclassified hourly employees be eliminated.
RECOMMENDATION
That the City Council approve the resolution eliminating the scheduled cost of
living salary increases for management and unclassified hourly employees.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The City is experiencing serious financial issues as a result of the downturn in the
economy. Through the implementation of the budget reduction plan, $15.5 million
of expenditure reductions were made to the fiscal year 2009 budget. Despite
these significant reductions, staff is currently projecting a budgetary gap of $8.8
million in the general fund for fiscal year 2009. As part of the solution to help close
the budgetary gap, it is recommended that the salary increases scheduled for all
management and unclassified hourly employees be eliminated. The budget
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APRIL 3, 2008, Item
Page 2 of 2
reduction plan approved by Council in December 2007 included the elimination of
the management salary increase scheduled for January 2008. The salary deferral
agreement that was reached with the Chula Vista Employees Association delayed
the January 2008 salary increase for unclassified hourly employees to July 2008.
The elimination of all of the scheduled salary increases for both management and
unclassified hourly employees will result in two consecutive years where these
employees do not receive a cost of living salary adjustment.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined
that it is not site specific and consequently the 500 foot rule found in California
Code of Regulations section 18704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT
The estimated savings from the elimination of the management salary increase are
$406,000 and $136,000 from the elimination of the unclassified hourly employee
salary increases scheduled for fiscal year 2009.
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RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ELIMINATING THE SCHEDULED FISCAL
YEAR 2009 COST OF LIVING SALARY INCREASES FOR
MANAGEMENT AND UNCLASSIFIED HOURLY
EMPLOYEES
WHEREAS, Executive, Senior, and Middle Managers are scheduled to receive a
4 percent salary increase in January 2009; and
WHEREAS, unclassified hourly employees are scheduled to receive a 4 percent salary
increase in July 2008 and a 4 percent salary increase in January 2009; and
WHEREAS, the City of Chula Vista is experiencing serious financial issues and staff is
currently projecting a general fund budgetary gap of $8.8 million; and
WHEREAS, the elimination of the scheduled fiscal year salary increases for all managers
and unclassified hourly employees will help close the budgetary gap by saving approximately
$542,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby eliminate the scheduled fiscal year 2009 cost of living salary increases for
management and unclassified hourly employees.
Presented by
Approved as to form by
David Garcia
City Manager
.c.. 2!7lltiftJ/fid/1l~
i/l nMoore I
i/ City Attorney
J:\Attorney\RESO\FINANCE\COLA elimination for 2009 _04_03-08.doc
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