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Politics & Government

City Employee Concessions Projected at $4.8 M in General Fund Savings

The $4.8 million with a $1.1 million reduction in services and supplies bridges the $12 million structural deficit in the general fund by half–at least for the upcoming fiscal year.

The fiscal year starts July 1 and the city council has passed the budget. Did the city meet their financial goals in regards to employee concessions?

"Yes, we did," said City Manager Tom Williams. "We achieved our goals this year and we're able to eliminate 50 percent of our structural deficit. We are very happy where we landed."

In the end, six unions (and one non-represented employee group) gave up a total of $4.8 million. On top of that, the city saved $1.1 million in services and supplies.

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The $5.9 million savings was nearly half of the $12 million general fund debt.

"These are historic cuts," said Williams. "Our employees stepped up...a good team effort. They sacrificed and gave back.

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The proposed budget for fiscal year 2011-12 was . The remaining union agreements (side letters or contracts) were approved at the . To view the union contracts, go to the city's website.

Employee Group

Savings to General Fund

Concessions

Gains Length of agreement

Milpitas Police Officers Association

$1,200,000 7% salary decrease (taken out in furlough days, 5.6 hours per pay period, for a total of 145.5 hours per fiscal year)

City makes best effort to avoid layoffs for participating in the mandatory work furloughs

Expires December 31, 2012

Firefighters

(International Association of Firefighters Local 1699)

$1,200,000

7% salary decrease (paid towards employer retirement contribution, or PERS)

3% salary increase eliminated (for Jan 2012)

Retirement is 3% at 50; now new hires are 3% at age 55

Six vacant firefighter positions to be filled Expires December 31, 2012

Mid-Management and Confidential Unit

   $200,000

7% salary reduction (no furloughs) 

Retirement for new hires is now 2% at age 60

No layoffs or new outsourcing of jobs during term of contract (through 2012), with exceptions

 

July 1, 2011 through December 31, 2011 

Milpitas Employees Association

   $800,000

A 16% base salary reduction 

Employees shall be responsible for 8% contribution to PERS retirement.

Retirement was once 2.7% at age 55; new hires are now 2% at 60

No layoffs or new outsourcing of jobs during term of contract (with exceptions) January 1, 2011 through December 31, 2012 

Milpitas Supervisors Association

   $100,000

Retirement was once 2.7% at age 55; new hires are now 2% at 60

No layoffs or new outsourcing of jobs during term of contract (with exceptions) January 1, 2011 through December 31, 2012 

Professional and Technical Employees

$1,000,000

In addition to paying 8% of PERS contribution rate to the MISC plan, employees pay 15.4% of PERSable salary  toward employer PERS contribution on a pre tax basis.

Retirement was once 2.7% at age 55; new hires are now 2% at 60

No layoffs or new outsourcing of jobs during term of contract (with exceptions) July 1, 2011 through December 31, 2012

Unrepresented unit (did not need approval by city council)

   $300,000 7% salary reduction Savings in employee concessions to General Fund

 

$4,800,000

Additional cuts in services/supplies $1,100,000 Total projected savings to General Fund for FY 2011-12  $5,900,000
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