Operating and CIP Budget Fiscal Year 2015-16

With these additions, the City will now have a total of 186.5 FTEs. This is an increase of 4.5 FTEs from FY 14-15, though still below the 189 FTEs in FY 09-10. It is important to realize that no additional positions are included in the recom- mended 5 year forecast beyond FY 15-16.

 CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP

Personnel Total (FTE)

190.00

186.5

185.00

182.00

180.00

177.10

174.00

175.00

169.50

168.85

170.00

165.00

160.00

155.00

FY10-11 Actual

FY11-12 Actual

FY12-13 Actual

FY13-14 Actual

FY14-15 Amended

FY15-16 Adopted

Labor Negotiations

The City’s agreements with its three labor associations (AFSCME, CSOA, and POA) expire on June 30, 2015. As was the case in 2013, a collaborative negotiations process has commenced and the City anticipates reaching an agreement with each of them by June 2015. The Council’s adopted Long Term Labor Strategy will once again serve as a guide for future contracts. The seven guiding principles of the strategy are 1) recruitment and retention, 2) market based com- pensation, 3) transparency, 4) fiscal sustainability and economic culture, 5) accountability, 6) performance based pay, and 7) legal compliance.

Employee Pension

The City provides retirement benefits to its employees through the California Public Employee Retirement System (CalPERS). Like most California cities, Morgan Hill provides a defined benefit pension to its employees. In FY 15-16, the City’s contribution for sworn police officers is 34.1 percent of pay (33.4 percent City-paid and 0.7 percent employee- paid—in addition to the employees’ 9 percent of pay contribution to their own retirement) which is a decrease from

CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET

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