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Home My WebLink AboutIR 8121 INFORMAL REPORT TO cry COUNCIL MEMBERS NO.. 8121 To the Mayor and Members of the City Council April 28, 1998 Subject: SALARY IMPACT OF PROJECTED POLICE CIVIL SERVICE RETIREMENTS This informal report is in response to a question raised by Councilmember Silcox during the April 7, 1998 Pre-Council work session regarding the future budgetary impact of the large number of retirements expected among Police civil service employees over the next several years. In October 1997, a survey was conducted of the Police Department's 182 employees who were eligible to retire at that time and in the near future to provide better information for scheduling recruit classes and determining the number of recruits for each class. A total of 132 employees, or 73 percent, responded to the survey. The respondents indicated the following dates when they expected to retire. 1998 37 1999 13 2000 27 2001 + 7 Undecided 481 The number of undecided respondents (about one-third of the total respondents) indicates that the survey is useful to determine short-term retirement plans. Through March 31, 1998, 22 sworn personnel have retired during the current fiscal year. Following the trend of the past several years where 60 percent of personnel losses occur in the first six months of the fiscal year, 37 sworn personnel are projected to retire in 1998. This confirms the accuracy of the survey for measuring retirement intentions. As of the date of this report, 160 sworn personnel are on the retirement eligibility list, taking away the 22 personnel who have retired in the current fiscal year. A new survey is currently in process to determine retirement plans over the next 12 months and will be one factor used to determine the size of Class 98, funded by a mid-year adjustment to the Crime Control and Prevention District budget and schedulqd_,to-start.*=,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,".�,-,l- .......... early July. "I -CORE FIC I A L R E VV 0 R'"r H T EX .......... ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8121 To the Mayor and Members of the City Council April 28, 1998 Page 2 of 3 x � Subject: SALARY IMPACT OF PROJECTED POLICE CIVIL SERVICE RETIREMENTS Salary Impact of Retirements The November 1997 retirement survey results are currently the only basis for assessing the impact of retirements on salary requirements in the Police Department. The large number of undecided eligibles precludes any definitive projections on salary impact on an annual basis, but available information is sufficient to establish an estimated impact of retirements on salary requirements. The average actual salary of the 160 persons on the eligibility list is about $51,200. An entry-level police officer is paid about $30,400. Applying these salaries to the 182 eligible retirees from the survey and using the survey results as an indicator of which years the savings will occur yields the following results (note that the "Undecided" category includes both those respondents who indicated such and eligibles who did not respond to the survey). 10% Year Eligibles Current Entry Salary Savings Salary 1998 37 $1,895,000 $1,384,000 $511,000 1999 13 665,000 395,000 270,000 2000 1 27 1,382,913 820 692 562,000 Undecided 1 105 $5,378,000 $37192,000 $2,186,000 While the savings are significant, there are other factors to consider that offset them. One factor is annual step increases for the 1,013 remaining Police civil service positions. Step increases will cost an additional $500,000 to $600,000 per year. The other factor is budgeted salary savings, which is a negative number in the Police Department's line item budget that anticipates salary savings in advance. For example, the full salaries and benefits of 10 police officers totals $500,000. If we plan on losing one officer due to attrition, we budget -$50,000 as anticipated salary savings, lowering the budget's bottom line to $450,000. Since budgeted salary savings are expressed as an actual negative number in the line item budget, these budgeted salary savings cannot be eliminated without increasing budgeted funds to cancel out the negative number. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS�- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. Al�i r010T r To the Mayor and Members of the City Council April 28, 1998 Page 3 of 3 Subject: SALARY IMPACT OF PROJECTED POLICE CIVIL SERVICE RETIREMENTS In the General Fund Police Department budget, salary savings of $449,000 are and will continue to be budgeted for sworn officer attrition. No salary savings are budgeted in the Crime Control and Prevention District because staffing of CCPD programs receives the highest priority. Applying the factors of step increases and budgeted salary savings changes the picture as follows. Year Eligibles Current Entry Savings Step + Salary Salary Budgeted Savings 1998 37 $1,895,000 $1,384,000 $511,000 $981,000 1999 13 665,000 395,000 270,000 1,006,000 2000 27 1,382,913 820,692 562,000 1,031,000 Undecided 105 $5,378,000 .$3,192,000 , 2,186 POOO NA Totals 1 $3,529,000 , $3,018,000 Based on the number of eligibles who have declared their intention to retire in a particular year, step increases and budgeted salary savings will be greater than the projected savings from the retirements. However, the majority of eligibles remain undecided about when they will retire. They are not required to retire at any time. If all of the undecided eligibles were to retire by the end of 2000, the savings from these retirements would exceed projected step increase costs and budgeted salary savings by $511,000. The only way to project whether any net savings will occur for a specific fiscal year is to continue surveying eligibles on a regular basis to determine their retirement plans, Given that the survey is a short term predictor, the budgetary effect of retirements will not be known much more than a year in advance. Fu er information will be provided upon request. er information o T b Terr 0 City M gt City Man ger ISSUED BY THE CITY MANAGER FORT WORTH.TEXAS