City employees,

This is to provide a status report on the FY14 Budget process and to let you know about some important discussions that are upcoming connected to city employee matters.

Compensation for FY14 - At the 3/27 Mayor & Council meeting (this Wednesday), the Human Resources Director will be making a first presentation on the City’s Compensation program.  She will be reporting on the analysis that has been undertaken per Mayor & Council direction beginning in Fall 2012.  The results of Labor Market Salary Comparisons are referenced.  Work that needs to be done to re-align the City’s compensation plan will be discussed and the concept of a Flat Rate Adjustment described.  To view the background materials that will be the basis of the presentation, go to this link and select Item #2 on the Study Session agenda. 

City Budget for FY14 - All departments and offices have been working diligently with the Budget Office and Finance Department to prepare the budget proposals for the fiscal year that runs from July 1, 2013-June 30, 2014.   The Mayor and City Council have already received several presentations.  The 3/27 meeting will be another opportunity for discussion and questions.  Here is the link to view Study Session agenda materials.
•    The Fire, Police and Parks budgets will be reviewed.  For information, go to the above link and select item #1 to view materials.
•    The Five-Year Srategic Transit Plan will be reviewed.  For information, go to the same link above and select item #4 to view materials.
•    Additional discussion about the budget process in general as well as balancing options will be held .   This will be item #3 at the same link listed above.

Pensions - The Mayor & City Council had a discussion about TSRS and PSPRS pensions at their 2/26 session.  Our elected officials received information on pension issues for cities across the country and they had an opportunity to discuss the current status and future possibilities for Tucson pensions.   

At the 3/27 Regular Meeting (evening session), the Mayor & City Council will once again consider a potential change in rates for those members of TSRS who are in the variable tier categories.  To view the background information and proposed changes, go to this link and scroll down past the first page to the Regular Agenda, then choose Item #12.

Additional discussion about the PSPRS system may take place at the meeting or 4/9, but this is not confirmed at this time.  

Medical RFP - An item on the 3/5 Mayor and City Council meeting agenda provided an overview of the upcoming services and costs of the City Medical Insurance and EAP benefits, plus a summary of the Patient Protection Affordable Care Act (PPACA) that will become effective July 2013 and what it means to City plans.  The successful bid results in no increase in premiums for city employees and retirees in FY14.  Additional discussion about these benefits may occur at future sessions about the budget.

I will be providing more updates of this type in the coming months to insure that you receive timely information about issues that affect us all as city employees.

Thank you,

Richard Miranda
City Manager