Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: May 13,2013 Page 3 The following Table sets forth a history of rates and annual cost for the City and the percentage rate of change: MISCELLANEOUS FIRE POLICE Rate Rate Rate Total % Annual Cost (a) Annual Cost (af Annual Cost (ar Annual Cost Change 2006-2007 38,013,933.26 17.480 13,799,911.54 27.280 27,415,317.53 27.280 79,229,162.33 2007-2008 42,934,740.16 19.200 14,357,867.10 26.660 30,244,078.80 26.660 87,536,686.06 10.49% 2008-2009 41,909,512.12 19.550 14,799,733.04 27.090 35,228,553.86 27.090 91,937,799.02 5.03% 2009-2010 28,609,780.59 19.590 14,450,896.34 27.448 34,554,042.38 27.448 77,614,719.31 -15.58% 2010-2011 23,436,093.61 19.890 14,175,460.08 27.682 30,221,552.26 27.682 67,833,105.95 -12.60% 2011-2012 31,440,003.39 23.604 13,113,234.90 28.561 21,058,342.21 28.561 65,611,580.50 -3.27% 2012-2013*'* 33,044,376.00 25.115 12,465,077.00 26.479""' 21,784,707.00 30.479'^' 67,294,160.00 2.56% 2013-2014***'*' 41,731,429.00 27.300 15,958,643.00 28.857 23,395,232.00 32.857 81,085,304.00 20.49% 2014-2015*'*''*' 44,482,952.00 29.100 16,021,116.00 30.410 24,840,979.00 34.410 85,345,047.00 5.25% 2015-2016*'*'" 47,066,325.88 30.79% 16,469,453.96 31.260 25,578,051.67 35.430 89,113,831.51 4.42% 2016-2017*"'" 49,680,272.53 32.50% 17,191,220.76 32.630 26,697,014.73 36.980 93,568,508.01 5.00% 2017-2018*'*'" 52,263,646.70 34.19% 17,891,914.07 33.960 27,794,320.44 38.500 97,949,881.21 4.68% (a) Rate = annual cost (employer contributions) as a percentage of covered payroll per fiscal year (1) Projections Covered Payroll is based on FY 2014-2015. Net of Port's payment (approximately 0.489yQ) Fire rate changed from 29.064% to 26.479% on 8/31/12 Police rate change from 29.064% to 30.479% on 8/31/12 Computed on baseline payroll, projected as of February 1,2013 5) What are the actual savings for miscellaneous employees by capping vacation leave? sick leave? The issue of employee leaves is not addressed in the Proposed Budget and is a topic that is subject to labor negotiations. 6) Has the city approached the Oakland Police Officers Association (OPOA) and/or the International Association of Firefighters (lAFF) Local 55 to help resolve the budget deficit? The Memorandum of Understanding with the OPOA is closed through June 30, 2015 and the MOU with lAFF Local 55 is closed through June 30, 2014. It should be noted that any agreement to resolve the budget deficit would require conversations with these groups to voluntarily reopen their contracts. Informal conversations have been had with each bargaining group relative to the City's fiscal condition. This is a topic that is subject to labor negotiations.