HomeMy WebLinkAboutReso 2009-158 - City Council Policy 219
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RESOLUTION NO. 2009 - 158
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF REDDING ESTABLISHING A NEW
COUNCIL POLICY RELATIVE TO PERSONNEL COSTS
WHEREAS, Mayor Rick Bosetti has suggested that the City Council should consider
establishing a new Council Policy relative to the containment of personnel costs; and
WHEREAS, the City Council discussed the need for a new Council Policy at its regular
meeting on July 21, 2009; and
WHEREAS, the City Council directed City staff to prepare a draft Council Policy for the
City Council's consideration at a future Council meeting;
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council that the attached
Council Policy is duly adopted and shall be included in the Redding City Council Policy Manual as
Council Policy Number 219.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at
a special meeting of the City Council on the 4th day of August, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Jones, McArthur, and Bosetti
Dickerson and Stegall
None
None
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RiCK BOSETTI, Mayor
Attest:
Form Approved:
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P AMEI;A.l\'I]ZE, Dep. ty City Clerk
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, City Attorney
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SUBJECT
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
PERSONNEL COSTS
2009-158
219
8/5/09
1
BACKGROUND
The City of Redding is a service organization. Consequently, a significant amount of the General
Fund budget is utilized to pay for salaries and benefits for City employees. This is common for
most cities in California.
Personnel costs currently account for approximately 70.4 percent ofthe General Fund budget. This
figure is projected to increase to approximately 73.0 percent in Fiscal Year 2010-11. It is possible
that this figure will continue to increase in the future because the costs associated with salaries and
benefits are increasing more rapidly than General Fund revenue. The costs associated with
retirement benefits and health-related benefits, in particular, continue to increase more rapidly than
General Fund revenue.
The City Council is mindful that other cities - such as the City of Vallejo - have encountered
financial difficulties when the costs associated with salaries and benefits increase disproportionally
over time.
PURPOSE
The purpose of the Council Policy is to express the City Council's intention to continue to monitor
and contain personnel costs in order to avoid potential financial problems in the future.
POLICY
It is the City Council's policy to maintain a fair and competitive compensation plan as outlined in
Council Policy 206. It is also the City Council's policy, however, to maintain an appropriate
balance between personnel-related expenses and other budget categories. To that end, the City
Council will continue to closely monitor personnel costs. The City Council will strive to constrain
personnel-related expenses, with a particular emphasis on containing the cost associated with
benefits. Personnel costs shall not exceed 73.0 percent of the total General Fund budget in any
given fiscal year.