It gets a little dull to go to the city council meetings and continuously hear Janice Daniels, Tom Burke and the supporting cast claim that the city is doing nothing to bring down costs. And why not? Ms. Daniels has told us she doesn't care how children feel about losing the library, that people considering moving to Troy don't care about whether Troy has a library and is "blame labor first" in mentality. She really just doesn't get it.
The city, in truth, has worked diligently to cut costs over the past few years. Further evidence will be presented at tomorrow's meeting--Item N-8.
To: Honorable Mayor and Troy City Council
From: John Szerlag, City Manager
John M. Lamerato, Assistant City Manager/Finance and Administration
Mark F. Miller, Acting Assistant City Manager/Economic Development Services
Peggy E. Sears, Human Resources Director
Subject: Update on Employee Concessions – Classified and Exempt Employees
In order to address the current budget situation, City Council directed that City management pursue a 10% cost savings from each employee group. This 10% is calculated on payroll costs which include base pay, pension, workers compensation and FICA. On November 22, 2010, City Council ratified a contract extension for the Troy Fire Staff Officers Association (TFSOA) that achieved these cost savings.
Consistent with the direction of City Council, we have met with the Classified and Exempt employees to discuss further concessions beyond the furlough days that had been implemented. (Since February, 2010, the Classified and Exempt employees have been contributing furlough days which represent a 5% savings.) These meetings resulted in achieving a 10% reduction in payroll costs, approximately $919,000. This cost savings is comprised of a combination of furlough days and pay reductions, as well as the same changes to health insurance that were agreed to by the TFSOA.
We have now met our objective with three employee groups representing 32% of our full-time workforce.