13 Unified Non-Civil Service Pay PlanCITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
MEETING DATE: January 28, 2008
~Action ❑ Discussion ~Information ❑Refer to;
SUBMITTED BY:
Gene Anderson, Finance Director
DESCRIPTION:
Consolidation of the two city pay plans.
BACKGROUND INFORMATION:
The city pay plan referred to, as the "old plan" was put in place in 1983. It is a
standard matrix design that is still used today both in government and the private
sector. It consists of 72 grades each with 5 steps. Going from step 1 to step 5 takes
a minimum of 3 years, but it can take longer if employee performance is not up to
acceptable standards.
The second city pay plan referred to as the "Z plan" was implemented in September
2004. It is a mirror image of the old plan except that (1) the steps on every grade
are 9% less than the steps on the old plan and (2) it takes a minimum of 5 years to
go from step 1 to step 5 on the Z plan. All employees hired after September 1, 2004
and all employees promoted after that same date must be placed on the Z plan and
not the old plan. ~
The proposed consolidated plan merges and expands the old plan and the Z plan.
The proposed plan is a matrix design with 75 grades each with 10 steps. It would
take a minimum of 20 years to~go from step 1 to step 10 of the conso~idated plan.
The first five steps of the consolidated plan are identical to the Z plan. Steps 6 and 7
of the combinetl plan are virtually the same as steps 4 and 5 of the old plan (they
are actually one half percent lower than the old plan amounts). Steps 8, 9, and 10 of
the consolidated plan are entirely new steps.
There is a 2.5% increase between each grade and a 5% increase between each
step of the consolidated plan. The minimum interval between the steps are as
follows: Between steps 1 and 2 is 6 months; between steps 2 and 3 is 6 months;
between steps 3 and 4 is 24 months; between steps 4 and 5 is 24 months; between
steps 5 and 6 is 24 months; between steps 6 and 7 is 24 months: between steps 7
and 8 is 36 months; between steps 8 and 9 is 36 months; and between steps 9 and
10 is 60 months.
The cost of implementing the consolidated plan over the next 10 years above the
cost of the current plans is estimated to be 1.2 million dollars (see detail on
accompanying spreadsheet).
CITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
BACKGROUND CONTINUED:
Since the last Council meeting, the Manager and I have discussed the consolidation
plan in detail with finro council members who requested clarification of the plan. As a
matter of information, one councilmember suggested, as an alternative, that the
combined plan be adopted but that the percentage increases for steps 8, 9, and 10
be changed to 1% instead of the 5% proposed. The reasoning given was that this
would put all employees on the same pay scale without obligating future councils for
large percentage increases. If future councils wished to increase steps 8, 9, and 10
beyond 1%, they could do so.
CITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
FISCAL AUTHORITY:
Not applicable.
LEGAL REVIEW:
N/A
MANAGER'S RECOMMENDATION:
Recommend approval as presented. The ability to attract, retain, and motivate
quality employees is critical to the success and efficiency of the City. The proposed
plan addresses five concerns created by the Z Plan. First, by extending the timeline
from 5 years to 20 the amount of time it takes a position to "top out," employees who
remain in grade have an incentive to stay with the City, thus benefiting the City by
reducing recruitment and training costs and retaining experienced people. Second, it
eliminates instances where two people with the same experience and credentials
doing the same job and receiving different pay. Third, it also eliminates problems
where a supervisor hired under the Z Plan is being paid less than a subordinate who
was hired under the old pay plan. Fourth, it reduces the City's liability exposure with
protected classes of employees. Lastly, it is less complicated to administer one pay
plan than two.
By providing pay that is internally equitable and externally competitive, the City can
create a competitive advantage in delivering our products and services to our citizens
through its most important resource - our employees. The pay plan should be
evaluated annually and any adjustments should be determined within the context of
existing and projected fiscal constraints and the City's competitive position.
10 Step Plan Costs with Z Plan Adjustments
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
S812fieS
$ 12,723,305
$ 12,819,413
$ 12,909,957
$ 13,129,727
$ 73,214,771
$ 13,309,340
$ 13,577,224
$ 13,622,796
$ 13,676,575
$ 13,760,192
$ 13,877,090
Beneflt5
$ 5,093,863
$ 5,136,369
S 5,177,065
$ 5,250,362
$ 5,289,375
$ 5,330,193
$ 5,400,042
$ 5,664,154
$ 5,473,272
$ 5,511,780
$ 5,542,608
$ 77,817,168 $ 17,955,782 $
18,087,022 $ 18,380,089 $ 18,504,146 $ 78,639,533 $ 18.917,266 $ 19,066,950 $ 19,749,847 $ 19,271,972 $ 79,359,698
Dollar Change
Wo Chanpe
Difference 2008/2009 Salaries
$ 96.108
0.76%
Difference 200812009 Benefts
$ 42,505
0.83%
YearTOtal
$ 138,613
0.78%
Z Pian costs
s 77,987
,
Net Cost o( 10 Slep Plan
$ 60,632
Dfference 2009/2010 Salanes
$ 90,544
0.71 %
DiHerence 2009/2070 BeneFits
$ 40,696
079 %
VearTOtal
$ 137,240
0.73%
Z Plan cosis
$ 86.807
.
Net Cos10l 10 Step Pian
$ 44,433
Difference 201W2011 Salanes
$ 219,770
1.70%
DiNerence2010/20118enefrt5
§ 73,297
1.42% ,
YearTOtal
$ 293,067
1.62%
Z Pldn costs
g 58.760
Net Cost of 10 Step Plan
$ 234,307
D'rfference 201112012 Salaries
$ 85,044
0.65%
Difference 2011/2012 Benefrts
$ 39,013
074%
Year Total
E 124,057
0.67 %
ZPlancosts
$ 73,127
Ne1 Cost of 10 Step Clan
$ 50,930
Difference 201212013 Salanes
$ 94,569
0.72 %
Difference 20122073 8enefrts
$ 40,818
0.77%
YearTOtal
$ 735,387
0.73%
Z Plan costs
$ 36,039
Net Cost of 10 Stev Plan
$ 99,348
Difference 2013/2014 Salades
$ 207,884
1.56%
Difference 2013/2014 Beneftls
$ 69,848
1,31%
Vear Total
y 277.732
7.49%
Difterence2014/20t5Salanes
$ 105,572
078%
DA(erence2014/2075Benefits
$ 44,113
0B2%
vearTOtal
y 149,685
0.79%
DiHerence 2015/2016 Salanes
$ 53,779
0.39 %
Difference 2015/2016 Benefi[s
$ 29,118
0.53%
Year Total
$ 82,897
0.43%
Difference 2016/2017 Salanes
$ 83,617
0.61%
Difference 2016/2017 Benefits
$ 38,508
0.70%
Year Total
$ 122,125
0.64 % Difference 201712078 Salanes § 56,898 0.41 %
Difference 207712018 Benefits
$
30,828
0.56%
VearToWl
$
87,726
0.46%
DAference2008/2018Salarie5
$
1,093,785
8.60%
Difference 200812018 Benefas
$
448,744
8.81 %
GranO Total Cost Over Ten Years
$
1,542,529
8.66 %
Total Z Plan cosis
$
332,714
Net Cost of 10 Step Plan
$
1,209,875
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Z Plan Costs
2008
2009
2010
2011
2012
2013
Salaries
12,734,262
12,781,044
12,835,911
12,868,694
12,913,061
12,927,970
Benefits
5,061,988
5,093,187
5,125,127
5,151,105
5,179,864
5,200,994
Difference 2008/2009 Salaries
Difference 2008/2009 Benefits
46,782
31,199
77,981
Difference 2009/2010 Salaries
Difference 2009/2010 Benefits
54,867
31,940
86,807
Difference 2010/2011 Salaries
Difference 2010/2011 Benefits
32,783
25,977
58,760
Difference 2011/2012 Salaries
Difference 2011/2012 Benefits
44,367
28,760
73,127
Difference 2012/2013 Salaries
Difference 2012/2013 Benefits
14,909
21,130
36,039
Total Salary Cost 193,708
Total Benefit Cost 139,006
Grand Total 332,714