DATE: December 15, 2015
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adoption of a Resolution of Intention to Introduce an Ordinance Approving an Amendment to the Contract between the City of Hayward and the California Public Employees Retirement System (PERS) for Miscellaneous Members in HAME, Local 21, and the Unpresented Employee Group
End
RECOMMENDATION
Recommendation
That the City Council adopts the Resolution of Intention to approve and introduce an Ordinance executing the amendment of the City of Hayward's contract with PERS to add a provision for cost sharing for the Miscellaneous Members in HAME, Local 21 and the Unrepresented Employee Group.
Body
BACKGROUND
Employee salaries and benefits comprise approximately eighty percent of the City's expenses. Over the last five years, the City of Hayward has worked hard to close a growing structural General Fund gap each fiscal year. Significant changes to employee salary and benefit packages are a key element in closing this gap. For FY 2016, the City Council was able to balance the General Fund without use of the General Fund Reserves. This was accomplished through difficult decisions made by City Council and increased sharing of compensation costs by most of the City's bargaining units. Unfortunately, the General Fund structural gap is projected to return in FY 2017, and absent additional cost cutting efforts (or significant new revenues), it will grow in future years.
Despite the financial challenges, the City remains committed to providing fair and competitive benefits packages in a fiscally responsible manner that also addresses the structural gap. This task is extremely challenging because any reasonable solution to achieve long-term financial stability must include increased employee contributions toward the growing cost of benefits.
Since FY 2010, the City's employee groups have all gi...
Click here for full text