Agenda Date: 12/15/2020
Subject:
Title
Ordinance 45-2020: An ordinance on second reading amending Ordinance 36, Series 2020, known as the "Annual Appropriation Bill" for all municipal purposes of the city of Littleton, counties of Arapahoe, Douglas, and Jefferson, state of Colorado, for the fiscal year beginning January 1, 2021 and ending December 31, 2021
Body
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Prepared by: |
Stacey Covington, Budget Analyst |
POLICY QUESTION:
Does city council support amending the 2021 annual appropriation for additional funding to increase Littleton Police Department (LPD) salaries that include sworn members of the Littleton Police Officer’s Association.
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director
Additional Presenter(s): N/A
SUMMARY:
Every one to two years the City participates in contract negotiations with the Littleton Police Officers Association to negotiate the terms of the bargaining unit’s employment contract. This bargaining unit consists of City of Littleton sworn police officers within the rank of sergeant or lower (excludes commanders and chiefs). In 2020, it was not possible to hold these negotiations prior to the adoption of the 2021 budget due to the impacts of COVID-19. Although Human Resources and Finance Department staff attempted to estimate wages for these employees in the adopted budget, the average market rate was volatile at the time and ultimately ended up slightly above what was budgeted. The contract requires the City to pay the average market rate or slightly above average of the negotiated comparable agencies. The tentative agreement consists of a proposed 4.15% wage increase for these employees as compared to the 3.0% wage increase included in the 2021 adopted budget.
PRIOR ACTIONS OR DISCUSSIONS:
Council held three budget review sessions in September 2020 and adopted the 2021 budget in October of 2020.
This ordinance passed on first reading on December 1, 2020.
ANALYSIS:
Staff Analysis
The City of Littleton’s Compensation Philosophy is market driven and intended to provide a competitive total compensation package of salary and benefits. Market strategy focuses on the attraction and retention of a competitive and diverse workforce to meet the needs of the community.
Based on the LPD agreement and contract language, and the need to be competitive in the hire and retention of new and existing officers, staff is requesting a supplemental budget appropriation to bring them to market rate effective January 1, 2021. An increase of 4.15% brings the pay for LPD Association members included in the bargaining unit to market rate for 2021 and maintains the pay differential that was also negotiated within the contract.
Council Goal, Objective, and/or Guiding Principle
This item is related to Financial Sustainability and Good Governance.
Fiscal Impacts
For the 2021 annual appropriation, a supplemental budget appropriation is requested in the amount of $136,800 for LPD Association members. This amendment will increase the 2021 General Fund budget by $136,800.
Additionally, the fiscal impact to the five-year plan is estimated to be a decrease of $726,290 to the General Fund balance by the end of 2025. This will result in a projected 7.6% fund balance as a percent of operating expenses at the end of the fifth year of the fiscally constrained financial plan, which is somewhat below the city’s policy of maintaining a minimum reserve amount of 8%-18%.
Alternatives
Option 1: Approve amending the 2021 annual appropriation bill to increase Littleton Police Department salaries that include sworn members of the LPD Association.
Option 2: Do not approve the amendment, which could make retention of current officers and hires of high quality candidates more difficult, creating a risk to public safety and incurring expensive turnover costs.
STAFF RECOMMENDATION:
Staff recommends approval of the amendment to the 2021 annual appropriation bill and setting a public hearing for December 15, 2020.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 45-2020 on second reading amending Ordinance 36, Series 2020, known as the "Annual Appropriation Bill” for all municipal purposes of the city of Littleton, counties of Arapahoe, Douglas, and Jefferson, state of Colorado, for the fiscal year beginning January 1, 2021 and ending December 31, 2021.