TITLE
Recommendation to request City Attorney to prepare a potential ballot initiative for City Council consideration that would cap total compensation levels for non-public safety employees for Fiscal Years 2014 and 2015 at those paid in Fiscal Year 2010; and request City Manager to concurrently report to City Council on the magnitude of services that could be restored with this reform.
DISCUSSION
Non-public safety employees have received more than a 15% increase in salary since the Great Recession started in 2008. Additionally, the annual cost of employee pensions has increased $28.7 million citywide, from $69.4 million in 2007 to $98.1 million in 2012, and continues to increase. These employees currently pay less than 10% of the cost of their pensions, while taxpayers pay more than 90%; thus, these skyrocketing costs have been borne by taxpayers.
The effect of this explosion in compensation costs is clear: the reduction of services across the board. So far, to pay for the increases in salaries and fringe benefits such as pensions, the City has cut funding for parks, started to downsize our libraries, and significantly reduced our police force, among other reductions. Without significant compensation reform, our future is clear: year after year of reducing and eventually closing libraries, cutting recreation programs for underserved youth, and delaying critical investments in our infrastructure.
It is time to ask a simple question: is this the Long Beach we want to leave our children? This question is so fundamental to our future that it is appropriate to directly ask our residents what kind of City they want.
Since 2008, City Management has done the right thing-they have accepted a wage freeze, resulting in a 0% increase in salaries. Additionally, public safety employees have voluntarily paid some of their salary increases into their pensions, significantly reducing the City’s costs and preserving services. On the other hand, most non-publi...
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