FY 15 S alary Proposal

1. FY 15 Salary Proposal Budget Commission Meeting April 17, 2014

2. Pay Raise Framework • Substantial increase for employees • Funds to target salary differentials that result from pay freeze for APS employees and market pay for new hires • Funds to target living wage issue • Total cost of approximately $15 million, including benefits

3. Proposal • All part-time and hourly employees receive 5% increase in hourly rate • Full-time employees who have not experienced a salary change in last two years receive a step increase or equivalent • Full-time employees who have not experienced a salary change in last four years receive an additional step increase or equivalent • All full-time employees receive $1,000 one-time payment, with two exceptions • employees hired after January 1, 2014 would receive only $500 one-time payment • employees receiving two-step increase would receive no one-time payment

4. Salary Impact • Number of full-time employees eligible for one-time payment is 2,862. Cost of $1,000 payment would be $2.86 million. • Number of part-time/hourly employees is 975. Annual salaries provided for part-time/hourly employees is approximately $15 million. Cost of 5% increase would be $0.75 million. • Number of full-time employees without increase in past two years is 3,241 with an average salary of $53,510. Cost of a step (@2.8%) would be $4.85 million. • Number of full-time employees without increase in past four years is 2,558 with an average salary of $52,060. Cost of a step (@2.8%) would be $3.73 million.

5. Summary • Total cost, before benefits, would be approximately $12 million. Benefits should be less than $3 million. • All full-time employees, except those that receive a two-step increase would receive one-time payment. • Part-time employees would receive 5% raise. • Approximately 60% of full-time employees would receive 2.8% increase. • Approximately 47% of full-time employees would receive an additional 2.8% increase.