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HomeMy WebLinkAbout2003-11-06 Joint with School BoCOUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: Compensation and Medical Insurance Report SUBJECT/PROPOSAL/REQUEST: Request approval for FY 05 Compensation and Health Insurance Recommendations via Board of Supervisors and School Board. STAFF CONTACT(S): Tucker, White, Suyes, Gerome AGENDA DATE: Thursday, November 6, 2003 @ 4:30 p.m. ACTION: X CONSENT AGENDA: ACTION: ATTACHMENTS: Yes REVIEWED BY: ~EM NUMBER: INFORMATION: INFORMATION: BACKGROUND: In November 2000, the School Board and Board of Supervisors approved a Total Compensation Strategy to target employee salaries at 100% of market median and benefits slightly above the market at 105%. The adopted market approved by the Boards is shown on Enclosure #1. To maintain competitive compensation based on the adopted strategy, two separate, but related actions are required. First, ensure a competitive salary scale, so that the County is able to attract and recruit new employees. Second, ensure current.emplOYees are rewarded for performance by maintaining internal equity in their pay range and also maintaining market competitiveness for similar skills. To adhere to the Boards' adopted strategy, the following steps are implemented each year: 1) Annually survey the adopted market to determine the salary scale adjustment implemented in those localities/schools for the current fiscal year. 2) Annually survey the adOpted market to determine the average total salary increase granted employees in those localities/schools for the current fiscal year. 3) On a tri-annual basis, survey our adopted market, not only on scale adjustments, but gather information on ranges and actual average salades on selected benchmark positions. This allows for a more in-depth analysis of our salades and can identify positions that may need further review. The last benchmark survey occurred in July 2000, so this past July the benchmark survey was completed on 67 positions. 4) The data from steps 1) ,2) and 3) is used to determine if budget actions implemented in the current year have achieved competitive positioning. 5) The data from steps 1) ,2) and 3) is analyzed to ascertain where the salary scales (both classified and teacher) for Albemarle County stand relative to the market and arrive at recommendations for next year's salary increases. 6) Obtain data on what other public organizations are projecting for salary increases for the next fiscal year through a compensation database (VVorldatWork. Eastern Region), This data is used to project the merit pool increase and develop the teacher scale (including step increase). This report provides analysis to support recommendations based on the adopted strategy. These projections are presented to the Boards for their consideration in providing direction to the County Executive and Superintendent for FY 04-05 budget preparation. Additionally, this report identifies recent issues impacting the ability of the School Division and Local Government to attract and retain a highly qualified workforce and addresses the School Board's pdority to "reevaluate the methodology used to determine market competitiveness.' STRATEGIC PLAN: Goal 4: Provide effective, responsive and courteous service to our customers. Objective 4.1.3 By June 2005, the county will be recognized as a quality place of employment with a workforce of employees continuously provide high quality, customer-focused service to its citizens. 2003-2004 plan-year. To stay within the Board's budgeted contribution and provide more options to employees, three planswith different deductibles, co-pays, and premiums were offered for the 2003-2004 plan year, effective October 1,2003. In addition, to accommodate the needs of our woridorce and have premiums more accurately reflect claims, a new coverage level of employee plus children was also introduced for the 2003-2004 plan year. FYO4-05 Plan Year Projection Information provided by Mr. Tom Mackay, our consultant with PalmerCay, indicates medical trends will continue at 16% for 2004- 2005. This is consistent with escalating medical costs that other employers are facing nationally. As we have just started the new plan year (OctOber lS:), staffwill, continue to monitor claims experience and develop recommendations for both plan design and premiums as part of the County Executive's and Superintendent's budget proposals. RECOMMENDATIONS: These projections are presented to the Boards for their consideration in providing direcl~on to both the County Executive and Superintendent for FY04-05 budget~ preparation, tt is noted that all final funding is subject to, and based upon, available state and local revenu~ Budget Development Projections based on adopted methodology: 1. 2% increase in the Classified Salary Scale. 2. 3% merit pool for Classified staff. 3. 2.8% funding for teacher salary increases (including step) to be distributed across the scale. 4. Continuation of a longevity increase for teachers. Explore a possible longevity step for classified employees. An~cipate a 16% increase in medical plan costs but defer decision until budget development in December/January. Other Recommendations: 6. Teachers-Identify competi'dve market at all school divisions in Virginia and target market position at top quartile at all steps. 7. Direct staff to identify targeted positions (bot~ Local Government and School Division) for which we recruit outside of our adopted market and evaluate Pay to be mor~Competifive and bring recommendations back to Joint Boards. 8, Direct staffto evaluate options addressing cost of living issues and bring recommendations back to Joint Boards. 03.143 COUNTY OF ALBEMARLE 2<2-10-03P05:33 EXECUTIVE SUMMARY RCVD AG EN DA TITLE: Compensation and Medical Insurance Report SUBJECT/PROPOSAL/REQUEST: Request approval for FY 05 Compensation and Health Insurance Recommendations via Board of Supervisors and School Board. STAFF CONTACT(S): Tucker, White, Suyes, Gerome AGE NDA DATE: Thursday, November 6, 2003 @ 4:30 p.m. ITEM NUMBER: ACTION: X INFORMATION: CONSENT AGENDA: ACTION: INFORMATION: ATTACHMENTS: Yes REVIEWED BY: ~ BACKGROUND: In November 2000, the School Board and Board of Supervisors approved a Total Compensation Strategy to target employee salaries at 100% of market median and benefits slightly abOve the market at 105%. The adopted market approved by the Boards is shown on Enclosure #1. To maintain competitive compensation based on the adopted strategy, two separate, but related actions are required. First, ensure a competitive salary scale, so that the County is able to attract and recruit new employees. Second, ensure current employees are rewarded for performance by maintaining internal equity in their pay range and also maintaining market competitiveness for similar skills. To adhere to the Boards' adopted strategy, the following steps are implemented each year: 1 ) Annually survey the adopted market to determine the salary scale adjustment implemented in those localities/schools for the current fiscal year. 2) Annually survey the adopted market to determine the average total salary increase granted employees in those localities/schools for the current fiscal year. 3) On a tri-annual basis, survey our adopted market, not only on scale adjustments, but gather information on ranges and actual average salaries on selected benchmark positions. This allows for a more in-depth analysis of our salaries and can identify positions that may need further review. The last benchmark survey occurred in July 2000, so this past July the benchmark survey was completed on 67 positions. 4) The data from steps 1) ,2) and 3) is used to determine if budget actions implemented in the current year have achieved com petitive positioning. 5) The data from steps 1) ,2) and 3) is analyzed to ascertain where the salary scales (both classified and teacher) for Albemarle County stand relative to the market an d arrive at recommendation s for next year's salary increas.es. 6) Obtain data on what other public organizations are projecting for salary increases for the next fiscal year through a compensation database (WorldatWork. Eastern Region). This data is used to project the merit pool increase and develop the teacher scale (including step increase). This report provides analysis to support recommendations based on the adopted strategy. These projections are presented to the Boards for their consideration in providing direction to the County Executive and Superintendent for FY 04-05 budget preparation. Additionally, this report identifies recent issues impacting the ability of the School Division and Local Government to attract and retain a highly qualified workforce and addresses the School Board's priority to "reevaluate the methodology used to determine market corn petitiveness." : STRATEGIC PLAN: Goal 4: Provide effective, responsive and courteous service to our customers. Objective 4.1.3 By June 2005, the county will be recognized as a quality place of employment with a workforce of employees continuously provide high quality, customer-focused service to its citizens. DISCUSSION: Section 1: Board Adopted Process for Compensation Strategy: Market Analysis and Projections Step 1: FY03-04. Survey the market to determine if the scale adjustment implemented for classified/administrator and teacher pay scales achieved the strategy. Classified/Administrator Scale Adiustments The Albemarle County scale was not adjusted in FY03-04 based on data that showed our scale was 0.5% above the market. In reviewing the salary scale adjustment data, our current scale is now slightly below market (using midpoint as the comparison measure, below market by 1.1%). See Enclosure #2. For classified employees, the scale adjustment impacts new hires and any employees with pay rates below the new minimums. A competitive scale is mportant in attracting new hires. Teacher Scale Ad/ustments For teachers, the scale adjustment impacts actual salaries. The market survey showed our FY02-03 teacher pay scale overall was 0.28% belowthe market median, therefore, a 4.08% increase was distributed along the scale to meet market last year. The data from the FY 03-04 scales shows us to be at or slightly above market median at alt steps. See Enclosure #3. Last year the School Board approved a longevity increase for teachers with more than 30 years. This longevity increase was approved for only FY02-03 and was paid as a lump-sum. The payments were as follows: 31 years of service $200 32 years of service $400 33 years of service $600 34 years of service $800 35 years of service $1,000 35+ years of service $1,000 Step 2: FY03-04. Survey the adopted market to determine if the total salary increase implemented for classified pay achieved the strategy. Classified/Administrator Total Salary Increases Based on data showing that our salaries were at market and the Worldatwork projection of 3.8%, a 3.8% merit pool was funded by the School Division. However, due to the County's reduced revenues, the recommendation of 3.8% could not be fully funded for General Government. The funding allowed for 2%, however, it was decided that amount was not sufficient to support a viable merit process. Therefore, general government employees received a 2% increase above base pay, with the consideration that if revenues improve during the year, the additional 1.8% may be given during the fiscal year to bring employees up to 100% of market. The FY03-04 total increase from the localities/school divisions responding to the survey ranged from 1% to 6% with a median total increase of 3.50 %. See Enclosure Ct-z,. Step 3: Projections for FY04-05. Based on current market position and scale/salary projections, determine the changes necessary to achieve the Board approved strategy using the WorldatWork, Eastern Region data. Refer to Enclosure #5. Classified/Administrator Scale Adiustments Based on the salary scale data of our competitive market, which shows the scale is slightly below market (1.1%) and projecting our market to increase, a scale adjustment of 2% is proposed. Classified/Administrator Average Salary Increase (merit) Based on survey data showing that the median increase for our corn petitive market was 3.5% and our increase was 3.8%, our salaries for FY03-04 are slightly above market (0.3%). The WorldatWork survey for the Eastern Region includes Virginia and this survey is projecting a salary increase of 3.3% in the Education/Public Administration sectors, therefore a 3% merit pool is recommended. Teacher Scale and Teacher Average Salary Increase 1. The teacher scale is based on the projected total increase obtained from WorldatWork. This survey projects a 3.3 % salary increase. Any increase would in clude the step increase. Compared to current market, the County's median teacher salary is above market overall by 0.5%. Therefore, a 2.8% teacher salary increase is projected. Continue longevity increases. Staff will prepare specific recommendations on the actual teacher pay scale, to include longevity increases. Staff will also look into a possible longevity increase for classified employees. Recommendations: Based on the Board adopted process and compensation strategy the following budget guidelines should achieve 100% of adopted market for salaries and scales in FY04-05. 1) 2% increase in the Classified Salary Scale (impacts new employees). 2) 3 % merit pool for Classified staff. 3) 2.8% funding for Teacher increases (including step) to be distributed along the scale. 4) Continuation of a longevity increase for teachers and explore a possible longevity increase for classified em ployees. Section 2: Competitive Market Methodology The School Board adopted 2002-2004 priorities, one of which is "During the 2002-2003 budget cycle, methodology used to analyze the division's salary and compensation structure relative to its defined market will be reevaluated". At the June 26 Joint Board meeting, the Board of Supervisors and the School Board supported staff's recommendation to "collect and analyze data over the summer, along with the annual salary review and bring a recommendation on the appropriate methodology for determining market competitiveness back to the Boards." Several recent issues have impacted the ability of the School Division and Local Government to attract and retain a highly qualified workforce. These issues include: Recent recruitments have resulted in a shallow pool of candidates for many positions; Top candidates declining positions; Perceived high cost of living in area by candidates; Growing percentage of workforce eligible for retirement; Difficulty recruiting and retaining highly qualified teachers- The impact of No Child Left Behind which mandates "highly qualified" teachers and the increasingly aggressive market for teachers makes attracting and retaining teachers a challenge. A review of the 131 School Divisions indicates that Albemarle County teacher salaries have dropped in competitiveness as the ranking among other school divisions has fallen at every step, with the exception of our minimum and step 5. In addition, the Albemarle Teacher scale is in the second quartile at all steps, with the exception of minimum and step 5, relative to other school divisions in Virginia. See Enclosure #6. In light of these issues: Consider different markets for different positions, specifically management-level and/or professional-level positions. The adopted market may adequately represent our competition for those positions which we would generally recruit locally. This market does not adequately represent our salary scale competitiveness for positions in a wider geographic market. Consider different market for teachers, as adopted market of 26 other school divisions is a cross-section of localities from across Virginia but heavily represented by surrounding school divisions (11 of 26), yet this market does not adequately represent our teacher scale competitiveness for recruitment. Consider cost of living. As the Charlottesville area has living costs above the average, recruiting new employees is becoming increasingly difficult. Over the past year, final candidates for teaching positions and management positions have declined the offer, often based on lack of affordable housing. The Charlottesville Metropolitan Statistical Area (MSA) has the 2r~ highest cost of living of the eight largest urban areas in Virginia. Charlottesville MSA ~s second only to Northern Virginia and the cost of housing (both rental and ownership) is considerably higher than the surrounding areas. See Enclosure #7 Recommendations: 1 ) Teachers-Identify competitive market at all school divisions in Virginia and target market position at top quartile at all steps. 2) Identify targeted positions (both Government and School Division) for which we recruit outside of our adopted market ane evaluate pay to be more competitive and bring recommendations back to Joint Boards. 3) Direct staff to evaluate options addressing cost of living issues and bring recommendations back to Joint Boards. Section 3: Benefits Strategy: Market Analysis and Proiections for Medical Insurance Premiums FY02-03 Plan Year (October through September) We experienced significant increases in medical claims for our self-insured plan in the 2001-2002 year and the 2002-2003 year. In order to maintain adequate reserves and a fully funded plan, a mid-year adjustment occurred in February 1,2003. This mid- year adjustment and a decrease in high claims in the final months of the plan year, has resulted in medical reserves on September 30, 2003 of $1,624,044, increased from the $1,222,455 from September 30, 2002. Total costs (claims + administration + reinsurance) were $12,842,976. FY 03-04 Plan Year Our medical claims for the current year are projected to increase 16%, which is consistent with medical trends. At the June 26 meeting, the Boards approved the 2003-2004 premiums and budgeted E~oard contribution for health coverage of $4,608 for the 2003,2004 plan-year. To stay within the Board's budgeted contribution and provide more options to employees, three plans with different deductibles, co-pays, and premiums were offered for the 2003-2004 plan year, effective October 1,2003. In addition, to accommodate the needs of our workforce and have premiums more accurately reflect claims, a new coverage level of employee plus children was also introduced for the 2003-2004 plan year. FY04-05 Plan Year Projection Information provided by Mr. Tom Mackay, our consultant with PalmerCay, indicates medical trends will continue at 16% for 2004-2005. This is consistent with escalating medical costs that other employers are facing nationally. As we have just started the new plan year (October 1st), staff will continue to monitor claims experience and develop recommendations for both plan design and premiums as part of the County Executive's and Superintendent's budget proposals. RECOMMENDATIONS: These projections are presented to the Boards for their consideration in providing direction to both the County Executive and Superintendent for FY04-05 budget preparation. It is noted that all final funding is subject to, and based upon, available state and local revenue. Budget Development Projections based on adopted methodology: 1. 2% increase in the Classified Salary Scale. 2. 3% merit pool for Classified staff. 3. 2;8% funding for teacher salary increases (including step) to be distributed across the scale. 4. Continuation of a longevity increase for teachers. Explore a possible longevity step for classified em ployees. 5. Anticipate a 16% increase in medical plan costs but defer decision until budget development in December/January. Other Recommendations: 6. Teachers-Identify competitive market at all school divisions in Virginia and target market position at top quartile at all steps. 7. Direct staff to identify targeted positions (both Local Govern ment and School Division) for which we recruit outside of our adopted market and evaluate pay to be more competitive and bring recommendations back to Joint Boards. 8. Direct staff to evaluate options addressing cost of living issues and bring recommendations back to Joint Boards. 03.143 Enclosure #1 Albemarle County Adopted Competitive Market Augusta County City of Charlottesville City of Chesapeake City of Danville City of Harrisonburg City of Lynchburg City of Roanoke City of Staunton City of Virginia Beach City of Williamsburg Buckingham County Chesterfield County Fauquier County Fluvanna County Greene County Hanover County James City County Loudoun County Louisa County Madison County Montgomery County Nelson County Orange County Prince William County Roanoke County Rockingham County Spotsylvania County Albemarle County Service Authority Martha Jefferson Hospital UVA Health Systems Enclosure #2 ' : ': ALBEMAREE COUNTY DA'~A: MARKET MEDIAN DATA ALBEMARLE COUNTY '. Average 2080 2080 2080 2080 Job Title . '. Minimum ': Midpoint Maximum ' 'Salary Min Mid Max Avg Min Mid Max Account Clerk $ 21,373 $ 27,786 $ 34,198 $ 21,176 $ 27,383 $ 33,944 $ 24,471 0.9% 1.5% 0.7% AsstPdncipal-Elementary $ 46,353 $ 60,259 $ 74,164 $ 63,6685 46,670 $ 61,938 $ 73,583 $ 55,988 (4.8%) (2.7%) 0.8% Auto/BusEquipmentMechanicll $ 22,931 $ 29,812 $ 36,692 $ 35,277 $ 26,414 $ 31,500 $ 38,842 $ 28,667 (13.2%) (5.4%) (5,5%) Bookkeeper $ 21,373 $ 27,786 $ 34,198 $ 28,497 $ 20,374 $ 26,813 $ 32,979 $ 25,040 4.9% 3.6% 3.7% Building Official $ 46,353 $ 60,259 $ 74,164 $ 63,445 $ 44,221 $ 56,420 $ 68,619 $ 53,851 4.8% 6.8% 8.1% Bus Driver $ 9.58 $ 12.46 $ 15.32 $ 12.09 $ 10.82 $ 12.93 $ 15.87 $ 14.00 (11.4%) (3.7%) (3.5%) Bus Driver Supervisor $ 32,604 $ 42,384 $ 52,164 $ 42,4211 $ 31,533 $ 41,653 $ 51,280 $ 43,937 3.4% 1.8% 1.7% ChiefofPolice $ 61,423 $ 79,849 $ 98,275 $ 88,419 $ 69,735 $ 91,204 $ 112,264 $ 89,227 (I1.9%) (12.5%) (12.5%) CommercialBuiidinglnspector $ 30,387 $ 39,504 $ 48,621 $ 34,195 $ 29,989 $ 39,290 $ 46,920 $ 38,064 1.3% 0.5% (0.6%) CommunicationsOffi(~r $ 26,399 $ 34,318 $ 42,237 $ 28,601 $ 24,587 $ 30,617 $ 37,352 $ 24,705 7.4% 12.1% 13.1% Communications Supervisor $ 32,664 $ 42,384 $ 52,164 $ 41,791 $ 31,489 $ 39,051 $ 48,465 $ 39,982 3.5% 8.5% 7.6% Custodial Supervisorll $ 24,603 $ 31,985 $ 39,366 $ 34,790 $ 29,498 $ 32,366 $ 36,695 $ 26,786 4.7% (1.2%) 7.3% Custodian $ 17,077 $ 21,443 $ 25,808 $ 20,202 $ 16,778 $ 21,367 $ 26,100 $ 19,455 1.8% 0.4% (1A%) DireetorofCurr[culumDevelopment $ 61,423 $ 79,849 $ 98,275 $ 60,059 $ 78,177 $ 93,673 $ 76,847 2.3% 2.1% 4.9% Director of Fiscal Services $ 57,246 $ 74,423 $ 91,597 $ 81,041 $ 65,017 $ 78,177 $ 94,504 $ 79,070 (11.9%) (4.8%) (3.1%) Director of Human Resources $ 51,423 $ 79,849 $ 98,275 $ 91,318 $ 65,017 $ 81,185 $ 96,905 $ 82,304 (5.5%) (1.6%) 1.4% Director of Parks and Recreation $ 57,246 $ 74,423 $ 91,597 $ 83,726 $ 53,518 $ 68,276 $ 83,325 $ 67,408 7.0% 9.0% 9.9% Director ofPlanningandCommDev $ 53,369 $ 69,371 $ 85,373 $ 84,910 $ 62,785 $ 79,541 $ 96,509 $ 82,695 (15.0%) (12.8%) (11.5%) Director of Social Services $ 61,423 $ 79,849 $ 98,275 $ 87,722 $ 64,867 $ 84,556 $ 102,783 $ 76,294 (5.3%) (5.6%) (4.4%) DirectorofTransportation $ 61,423 $ 79,849 $ 98,275 $ 86,334 $ 64,204 $ 77,521 $ 99,741 $ 75,760 (4.3%) 3.0% (1.5%) El~trician $ 22,931 $ 29,812 $ 36,692 $ 28,574 $ 23,379 $ 29,779 $ 36,433 $ 30,668 (1.9%) 0.1% 0.7% Eligibility Worker $ 28,322 $ 36,820 $ 45,317 $ 34,723 $ 25,123 $ 32,240 $ 39,501 $ 28,674 12.7% 14.2% 14.7% Engineeringlnspector $ 30,387 $ 39,504 $ 48,621 $ 35,082 $ 31,444 $ 40,237 $ 49,211 $ 36,809 (3.4%) (1.8%) (1.2%) Fire Captain $ 34,980 $ 45,474 $ 55,967 $ 47,428 $ 38,700 $ 46,717 $ 55,346 $ 42,836 (9.6%) (2.7%) 1.1% FirefightedEMT $ 28,330 $ 36,816 $ 45,302 $ 31,226 $ 25,015 $ 31,314 $ 37,613 $ 33,216 13.2% 17.6% 20.4% Food Service Asseeiate $ 8.21 $ 9.50 $ 10.78 $ 8.80 $ 7.98 $ 9.42 $ 12.28 $ 8.60 2.9% 0.8% (12.2%) Food Service Managerl $ 11.02 $ 12.83 $ 14.64 $ 14.50 $ 9.67 $ 12.43 $ 15.38 $ 11.57 13.9% 3.3% (4.8%) General MaintenanceWorkerl $ 17,306 $ 22,497 $ 27,688 $ 19,623 $ 19,009 $ 23,837 $ 29,702 $ 26,327 (9.0%) (5.6%) (6.8%) GISManager $ 43,203 $ 56,I64 $ 69,1'24 $ 49,854 $ 48,850 $ 60,581 $ 72,404 $ 59,284 (11.6%) (7.3%) (4.5%) GISSpecialistl $ 32,604 $ 42,364 $ 52,164 $ 35,327 $ 31,693 $ 38,949 $ 46,196 $ 36,878 2.9% 8.8% 12.9% Grounds/FacilitiesMaintenanceWorkerl $ 17,306 $ 22,497 $ 27,688 $ 19,176 $ 25,288 $ 30,326 $ 20,478 (9.7%) (11.0%) (8.7%) Human Resources Specialist lll $ 26,399 $ 34,318 $ 42,237 $ 34,036 $ 38,275 $ 64,336 $ 63,160 $ 43,846 (31.0%) (36.8%) (33.1%) HVACMechanic $ 22,931 $ 29,812 $ 36,692 $ 29,799 $ 25,832 $ 32,731 $ 40,711 $ 36,995 (11.2%) (8.9%) (9.9%) Instructional Coordinator $ 46,353 $ 60,259 $ 74,154 $ 60,266 $ 52,972 $ 63,354 $ 79,401 $ 61,256 (12.5%) (4.9%) (6.6%) UaintenanceMechanic $ 21,373 $ 27,786 $ 34,198 $ 29,046 $ 21,507 $ 30,280 $ 35,980 $ 29,312 (0.6%) (8.2%) (5.0%) Management Analyst ll $ 34,980 $ 45,474 $ 55,967 $ 43,729 $ 37,523 $ 47,514 $ 57,871 $ 50,465 (6.8%) (4.3%) (3.3%) Office Associate ll $ 17,306 $ 22,497 $ 27,688 $ 22,376 $ 20,441 $ 26,995 $ 32,926 $ 24,750 (15.3%) (16.7%) (15.9%) Office Associate lV $ 22,931 $ 29,812 $ 36,692 $ 31,050 $ 23,553 $ 29,926 $ 37,273 $ 27,748 (2.7%) (0.4%) (1.6%) Parks Foreman $ 21,373 $ 27,786 $ 34,198 $ 28,452 $ 32,635 $ 44,190 $ 54,731 $ 35,745 (34.5%) (37.1%) (37.5%) Payroll Supervisor $ 34,980 $ 45,474 $ 55,967 $ 48,662 $ 29,451 $ 38,225 $ 46,775 $ 36,022 18.8% 19.0% 19.7% Planner $ 34,980 $ 45,474 $ 55,967 $ 38,389 $ 33,218 $ 43,081 $ 52,793 $ 36,730 5.3% 5.6% 6.0% Police Lieutenant $ 43,203 $ 56,164 $ 69,124 $ 59,748 $ 43,605 $ 55,775 $ 69,737 $ 56,076 (0.9%) 0.7% (0,9%) PoliceOfflcer $ 28,322 $ 36,820 $ 45,317 $ 30,736 $ 29,564 $ 36,955 $ 44,512 $ 31,878 (4.2%) (0.4%) 1,8% Police Records Clerk $ 21,373 $ 27,786 $ 34,198 $ 22,514 $ 20,259 $ 25,335 $ 32,653 $ 24,437 5.5% 9.7% 4.7% Police Sergeant $ 37,530 $ 48,790 $ 60,050 $ 51,708 $ 36,177 $ 47,928 $ 60,534 $ 46,366 3.7% 1.8% (0.8%) Principal-Elementary $ 53,359 $ 69,366 $ 85,373 $ 71,948 $ 57,742 $ 70,228 $ 83,554 $ 67,178 (7.6%) (1.2%) 2.2% PrincJpa-Hgh $ 61,423 $ 79,649 $ 98,275 $ 86,510 $ 70,368 $ 80,627 $ 99,229 $ 77,991 (12.7%) (1.0%) (1.0%) Principal-Middle. $ 57,248 $ 74,423 $ 91,597 $ 75,969 $ 65,419 $ 74,985 $ 93,673 $ 70,502 (12.5%) (0.7%) (2.2%) ProgrammedAnalyst $ 37,530 $ 48,790 $ 60,050 $ 46,160 $ 37,489 $ 46,672 $ 55,856 $ 41,830 0.1% 4.5% 7,5% Real EstateClerk $ 19,921 $ 25,897 $ 31,873 $ 23,509 $ 29,627 $ 36,735 $ 25,537 (15.3%) (12.6%) (13.2%) School Nurse $ 12.69 $ 16.50 $ 20.31 $ 15.81 $ 17.70 $ 22.23 $ 28.52 $ 21.78 (28.3%) (25.8%) (28.8%) Senior Account Clerk $ 24,603 $ 31,985 $ 39,366 $ 26,707 $ 25,958 $ 32,704 $ 38,710 $ 31,185 (5.2%) (2.2%) 1.7% SeniorAccountant $ 34,980 $ 45,474 $ 55,967 $ 41,351 $ 36,468 $ 46,980 $ 58,153 $ 43,946 (4.1%) (3.2%) (3.8%) SeniorAppraleer $ 37,530 $ 48,790 $ 60,050 $ 47,968 $ 36,452 $ 45,206 $ 54,034 $ 43,636 3.0% 7.9% 11.1% Senior Civil Engineer $ 46,353 $ 60,259 $ 74,164 $ 46,233 $ 59,260 $ 70,117 $ 53,595 0.3% 1.7% 5,8% SeniorEligibiltyWorker $ 32,604 $ 42,384 $ 52,164 $ 42,062 $ 28,547 $ 37,304 $ 45,912 $ 39,775 14.2% 13.6% 13.6% Senior Malntenance Mechanic $ 22,931 $ 29,812 $ 36,692 $ 27,419 $ 29,899 $ 38,168 $ 46,437 $ 34,388 (23.3%) (21.9%) (2t.0%) SeriiorPanner $ 40,267 $ 52,348 $ 64,428 $ 45,757 $ 37,955 $ 46,980 $ 59,146 $ 46,744 6.1% 11.4% 8.9% Sen!or Support Analyst $ 40,267 $ 52,348 $ 64,428 $ 46,591 $ 41,704 $ 54,336 $ 70,008 $ 60,480 (3.4%) (3.7%) (8.0%) Senior Tax CIerk $ 26,399 $ 34,318 $ 42,237 $ 30,996 $ 24,451 $ 30,564 $ 36,677 $ 28,029 8.0% 12.3% 15.2% Social Worker $ 30,387 $ 39,504 $ 48,621 $ 39,952, $ 29,441 $ 38,069 $ 45,768 $ 34,021 3.2% 3.8% 6.2% Social Worker Supervisor $ .43,203 $ 56,164 $ 69,124 $ 54,890i $ 37,807 $ 49,518 $ 59,817 $ 47,149 14.3% 13.4% 15.6% SupportAnalyst $ 34,980 $ 45,474 $ 55,967 $ 39,827 $ 27,581 $ 44,574 $ 61,508 $ 44,069 26.8% 2.0% (9.1%) Systems Analyst $ 37,530 $ 48,790 $ 60,050 $ 42,529 $ 44,133 $ 54,949 $ 65,618 $ 51,599 (15.0%) (11.2%) (8.5%) TaxClerk $ 22,931 $ 29,812 $ 36,692 $ 23,778 $ 21,528 $ 28,143 $ 53,944 $ 24,054 6.5% 5.9% 8.1% TeadhngAssistant $ 8.93 $ 11.61 $ 14.28 $ 10.95 $ 8.23 $ 10.83 $ 14.28 $ 9.62 8.5% 7.2% 0.0% Zoninglnspector $ 26,399 $ 34,318 $ 42,237 $ 29,022 $ 28,621 $ 36,255 $ 44,640 $ 33,980 (7.8%) (5.3%) (5.4%) Overall Average Variance to Market: (2.6%) (1.1 %) (0.9%) Albemarle County 2003 Compensation Survey BA Teacher SCales Enclosure # 3 Augusta County Buckingham County Charlottesville City Chesapeake Chesterfield County Fauquier County Fluvanna County Greene County Hanover County Harrisonburg City Loudoun County Louisa County Lynchburg City Madison County Montgomery County Nelson County Orange County Danville Pdnce William County Roanoke City Roanoke County Rockingham County Spotsylvania County Staunton City Schools Virginia Beach City Williamsburg-James City County 0-29 0-30 0-31 0-15 0 - 28 0-31 0 - 30 1 - 23 0 - 28 0 - 23 1 - 27 0 - 24 0 - 34 1 -21 0 - 30 0 - 28 1 -21 1 -13 $ 30,000 $ 31,468 $ 33,073 $ 34.760 $ 38,002 $ 41,957 $ 45,598 $ 46,960 $ 30,906 $ 31,706 $ 33,038 $ 34,636 $ 42,630 $ 42,630 $ 42630 $ 42,630 $ 32,252 $ 34,396 $ 37,777 $ 40.657 $ 44,653 $ 48,056 $ 52,020 $ 52,020 $ 32,300 $ 34!896 $ 38,655 $ 42,140 $ 46,514 $ 48,705 $ 53,212 $ 53,212 $ 32,824 $ 35,316 $ 37,118 $ 39,386 $ 41,624 $ 45,917 $ 50,707 $ 51,722 $ 31,000 $ 35,076 $ 39,687 $ 44,905 $ 44,905 $ 44,905 $ 44,905 $ 44,905 $ 33.310 $ 36,176 $ 38,274 $ 45,700 $ 47,741 $ 49,784 $ 51,825 $ 51,825 $ 31,563 $ 32,247 $ 33,713 $ 35,922 $ 38,947 $ 42,431 $ 48.034 $ 48,034 $ 32,558 $ 33,713 $ 35,963 $ 39,511 $ 43,410 $ 47,836 $ 53,500 $ 53,500 $ 32,450 $ 33,750 $ 35,750 $ 38.800 $ 42,150 $ 46,750 $ 49.300 $ 52,700 $ 34,742 $ 39,705 $ 47,937 $ 56,549 $ 66,195 $ 72,579 $ 72,579 $ 72,579 $ 32,500 $ 33,410 $ 36,775 $ 37.970 $ 39,204 $ 43,152 $ 43.152 $ 43,152 $ 31,000 $ 32,548 $ 34,196 $ 37,338 $ 40,067 $ 43,734 $ 52,530 $ 52,530 $ 31,600 $ 31.924 $ 32,687 $ 34,344 $ 39,257 $ 45,075 $ 45,075 $ 45,075 $ 29,000 $ 29,375 $ 31,475 $ 33,975 $ 37,375 $ 41,375 $ 45,775 $ 45,775 $ 31,128 $ 32.071 $ 33,707 $ 35,426 $ 38,164 $ 45,486 $ 45.486 $ 45,486 $ 29,800 $ 31 190 $ 32,853 $ 35,737 $ 42,099 $ 42,588 $ 43,196 $ 43,650 $ 30,000 $ 30,836 $ 32,761 $ 34,687 $ 37,525 $ 41,376 $ 45,785 $ 49,890 $ 35,455 $ 40,455 $ 47,596 $ 55.874 $ 65,471 $ 67,566 $ 67,566 $ 67,566 $ 31,679 $ 32,452 $ 34,617 $ 38,133 $ 45,176 $ 46,928 $ 49,009 $ 49,009 $ 31,000 $ 33.250 $ 35,500 $ 37,750 $ 45,500 $ 46,000 $ 46,800 $ 47,800 $ 32,000 $ 32,600 $ 34,000 $ 37,000 $ 40,500 $ 43,650 $ 46,850 $ 46,850 $ 33.660 $ 34,419 $ 36,174 $ 40.553 $ 52,418 $ 52,942 $ 55,093 $ 56,195 $ 30,000 $ 31,278 $ 33,239 $ 36,749 $ 39,043 $ 41,400 $ 43,685 $ 43,685 $ 33,069 $ 34,753 $ 40,676 $ 47,153 $ 56,535 $ 58,232 $ 58,232 $ 58,232 $ 32,000 $ 33,620 $ 38,038 $ 40.963 $ 40,963 $ 40,963 $ 40,963 $ 40,963 Low:. 25th Percentile: Median: Average: 75th Percentile: High: ~.lbemarle County Albemarle Compared to Market Median: Albemarle Compared to 75th Percentile: 29,000 $ 31,000 $ 31,840 $ 31,838 $ 32,544 $ 35,455 $ 32,200 $ 1.1% (1.1%) 29,375 $ 31,961 $ 33,330 $ 33,563 $ 34,670 $ 40,455 $ 34,200 $ 2.6% (1.4%) 31,475 $ 33,707 $ 35,625 $ 36,357 $ 38,038 $ 47,937 $ 36,200 $ 1.3% (4.8%) 33,975 $ 35,783 $ 38,052 $ 39,870 $ 40,887 $ 56,549 $ 38,200 $ (6.6%) 37,375 $ 39,217 $ 42,125 $ 44,464 $ 45,419 $ 66,195 $ 42,420 $ (6.6%) 40,963 $ 42,599 $ 45,281 $ 47,385 $ 48,001 $ 72,579 $ 45,278 $ (o.o%) (5.7%) 40,963 $ 45,178 $ 47,442 $ 49,750 $ 52,403 $ 72,579 $ 49,ooo $ 3.3% (6.5%) 40,963 45,178 48,522 50,229 52,658 72,579 49,000 1.0% (6.9%) Enclosure # 4 Locality Total Average Salary Inc. % Augusta County Schools Buckingham County School Board Charlottesville Schools Chesapeake Public Schools Greene County Public Schools Harrisonburg City Public Schools Loudoun County Public Schools Louisa County Public Schools Montgomery County Public Schools Orange County Public Schools Roanoke County Public Schools Staunton City Schools Chesterfield County City of Charlottesville City of Chesapeake City of Danville City of Hardsonburg City of Lynchburg City of Roanoke City of Staunton City of Virginia Beach County of Augusta County of Louisa County of Roanoke Fluvanna County Hanover County James City County Montgomery County Nelson County Pdnce William County Spotsylvania County 3,50% 5.00% 3.50% 3.60% 2.50% 3.00% 1.00% 3.25% 3.50% 1.50% 2.00% 3.30% 3,30% 3.50% 3.00% 3.00% 3.00% 2.00% 2.25% 6.00% 3.50% 3.00% 3.50% 2.00% 3.80% 3.50% 3.50% 3.50% 4.00% 3.50% 4.60% Median Increase 3.50% Enclosure #5 Worldatwork Salary Data 3.80 3.70 3.60 3.50 3.40 3.3~ 3.20 3.10 3.00 National Eastern Eastern National Eastern INational 2003 Actual (FY 03/04) 3.30 3.70 2OO4 Proj. (FY 04/05) 3.30 3.80 Enclosure #6 Losing Ground Albemarle's Rank vs. 131 VA School Divisions Ranking 0 10 2O 30 40 50 60 70 I--*--FY 98199 -- FY 02~03; rain 5 19 15 I20 25 30 max 58 40 I 27 25 34 48 40 48 28 34 42 39 48 57 48 49 Step.years of service I--~- F Y 98199] --~- F Y 02103 Losing Ground Albemarle teacher scale com pared to other School Divisions n Virginia: Top quartile at steps 0 and 5 Second quartile at all other steps $55,000 $50,000 $45,000 $40,000 $35,000 $3o,ooo ~ FY 02~03 Charlottesville -,- FY 02~03 Top Quartile (32nd) FY 02103 A bemarle Enclosure #7 Cost of Living Urban Index Data Professional / Managerial Household 2003 2"d Quarter Percentage (%) Difference Compared to Charlottesville MSA Avg. Avg. MSA Total Groceries Housing Utilities Transp. Health Misc. Rent Home Price Northern Va. +19.2 -1.3 +62.6 -5.9 +15.0 +33.9 -3.8 +105.7 +51.2 Hampton/S.E. Va. -13.6 -13.0 -23.3 +11.5 +0.5 , +1.5 -18,1 -11.3 -28.4 Richmond -8,7 -0.6 -17.3 -3.5 -3.5 -10.8 -7.2 -10.5 -20.9 Roanoke -15.3 -16.6 -22.4 -12.8 -9.9 -7.4 -11.7 -31.4 -20.0 Source: ACCRA (formerly Amedcan Chamber of Commerce Reseamhers Association) Cost of Living - Home Prices Residential Statistics from the Multiple Listing Service September 2001 2002 2003 I # Closed Median Compared To # Median Compared To # Closed Median ComparedTo Price Albemarle Closed Price Albemarle Price Albemarle Albemarle 83 $210,037 101 $227,000 105 $275,450 charlottesville 22 $132,250 -37.0% 25 $161,825 -40.2% 23 $178,500 -35.1% Fluvanna 26 $129,000 -38.6% 41 $167,650 -35.4% 65 $169,900 -38.3% Greene 7 $124,950 -35.6% 16 $127,550 -77.9% 26 $169,550 -38.4% Louisa 7 $124,950 -40.5% 9 $149,250 -52.0% 20 $171,500 -37.7% Nelson 19 $140,000 -33.3% 37 $145,450 -56.0% 38 $189,700 -31.1% Average $132,280 -37.0% $172,500 -31.6% -32.4% Source: Charlottesville / Albemarle Area Realtors (CAAR) 11/6/2003 Albemarle County Joint Board Compensation and Benefits Strategy (Budget Guidance), November 2003 PART I ~]~ ~:' ?,. '.:,, , ,6,/~.,,J survey data from adopted market .~, Identify where we are relative to market ,[, ['~ecorn '~,e~ :1 Salary and Scale Increases for buag,,~,t pi,~.mmng PART II ~ Jdec~tJ'[y other issues 4, P rovid e choices Jf;'R;8~6~mend direction 11/6/2003 ,.,, · . · , ...,, /.:,,d opted M ~ rket - Counties and Schools of'similar size within the State of Virginia .... Counties and Schools in the same geographic region of Virginia - Local private employem Ba~:;e Sala~:y . At market level~ (i,e,, ~ O0u' pementile of.market median) inierr~al Equity 2erie fits 8lightly abo~e mar~at level~ (i.e., ~0~m percentile) SLIrVCy .Marlqct Strategy Analy/e data- ' do ~ e lead, J~t~, or IllCCt Gel Woi'ldat work projections · Ih'ojecl'scale & salary I I'lC 1?(2as~.h 2 11/6/2003 Compensation Strategy July 2003-Steps Taken To Achieve Strategy CLASSIFIED ~ No scale salary adjustment ~ School Division-Merit pool increase amount 3.8% ¢ Government-Base pay increase of 2%, effective November 1, 2003,1.8% TEACHERS 4, Adjusted scaie and built in projected 4.08% average increase " " .... ....,I-, I,'. Jrnl:~ortarri' Why ,c..,.~ary ........... ,~i~, Corrlp(..'.::l;J'[Jw.'-'~ il'l re.c. rlJitrileFri' .,~, Imp~:~c, New Hires .'-~rld ........ " .., I' I 1 j..,,. ~ .r ~::;' ~':; ~-'-' iL}6' ~.,?¢ r'l('YW r'f'Jif~,Jrl'll,.!lT'l 11/6/2003 Review of Adopted iVlarket CLASS/RED EMPLOYEES' SCALE Market Salary Survey - July 2003. Scale 0.5% ' ~,. What we did - 0% scale Where we started -1. 1% Where we are now ..,~1,1~ "'~r&~..: f: ~aCf', ~,~ ,.'. ",'.,'~.~..,~:v,,.' Review of Adopted ~larket CLASSIFIED EMPLOYEES' SALARIES Market Salary Survey - July 2003 Salaries What we did market Where we started What they did I).3% Where are we now 11/6/2003 Review of Adopted IVlarket TEACHERS' SCALE Market Salary Survey - July 2003 Salaries What we did ~ 0.5% Where ~.{r'e we now Where we started Review of Adopted Bari(et TEACHERS' INCREASE $55,000- $50,000 $45,000- $35,000- $30,000- Albemarle Teacher Scale Median 11/6/2003 Review of Adopted iVlarket Classified Employees' Triannual Survey ~, Benchmark 60+ positions e identify positions 10% or more below market median for analysis ~, Budgetary implications Survcy Market ,\ hal?. c ti() wc lc:M, .lag, or nleol ITlfll'kC[? ' Get Worldalwork projections · , 'Proiect scale ',. & salary itlCl'Oases 11/6/2003 Joint Board's Process for EstabliShing Salary Increase . WorldatWork (American Compensation Association) . Geographic Region: Eastern . Scope Measure: Educational Services/Public Administration ,. Projected 04/05 WorldatWork Total Salary Increase: 3.3% Benefits Strategy Target slightly above market levels (i.e., 105th percentile) ,, Medical Insurance benefit design and premiums are strength in benefit plan FY 03/04-offering choice, 3 plans with different premium amounts -94% Employees opted for High option plan FY 04/05 - Anticipate a 16% increase 11/6/2003 Compensation Strategy S urvcx..; Market ,\nil yzc al:da- '-. do wc lead, m,,..kcf.) Get Worlda lwUrk pro. icctions ' projcc~ scab &'sal:iry increases FY 04]05 Piannin~ Projections Based Joint Board Adopted Methodology on Staff Recommendations: ~ CLASSIFIED ~ Project 3% Merit Pool -based on Worldatwork projected 3.3%, and adjusted for salary 0.3% above market e Project 2% classified salary scale adjustment based on survey data of below market 1.1% and projecting scale increase in adopted market 8 11/6/2003 FY 04105 Pianninfl i'~rc, jectiom,~ 8asr:,!d Joint Board Adopted l~?lethodology -1' E/\C H ~t,, Project 'T',~achew Salary Ir,:.',reas~y; ..,::,f "' ........ ~' ]"i' t-¢.~ · "'./...o°"~z;o ('to irmh..rde ,'.:;'l.e p ii ,.,, based on WorM atwork r)rojec, ted '.: ~%. and adjus(ed for owara!l ,.), ,. I , 0.5% ;:~bove rno. rl.,'et C'¢) ',~: '~ I :.'~ ' ..~'~ ,"," ~'¢~':" '~.~,' ,. ,~, ........ nL.(, .ur.,[.~-,:,,,h. ~,a~,l ..... h')r~q6~vity increr-~se FY 04~05 Planning Projections Based Joint Board Adopted Elethodology on Staff Recommendations: ~ BENEFITS Plan on approximate 16% increase in medicat insurance plan; continue to monitor claims and reevaluate 9 11/6/2003 Agenda PART I · Review survey data from adopted market , Identify where we are relative to market e Recommend Salary and Scale Increases for budget planning PART II ~ Identify other issues ~ Provide choices , Recommend direction Summary- PAP, TI FY 03/04 budget projections based on adopted methodology: · 3% merit pool for classified ,2% classified scale increase · 2.8% teacher increase, step and scale , Continue lump-sum teacher longevity increase , Defer on medical contributions 10 11/6/2003 Recent Issues ,..Shallow pool of candidates for several f..)o.:d[io r.~s ~ "T"ol:; cai",did~l:e:..} declir'ling r:;c.;si'!.i,:~'ls .,. F:t~:::c,')gnized high cost o'i: livir~,g ir'~ ar,?,::~ by c8 nd ici~.:.'~ i:es , Ai.h'ac:ting and retaining Clualii:ie.d c a n dM.a tes .,. 'nc.'.rc.-,'.:~sin9 F',er'.r;en'Ir.'~f]e of wor'l.'.for'c,?.~ eligible for retiremer~t Recent Issues Based on these issues, at the June 26 meeting, the Joint Boards directed staff to collect and analyze data and bring a recommendation on the appropriate methodology for determining market competitiveness. 11 11/6/2003 Losing Ground Albemarle's Rank vs. 131 VA School Divisions Ranking Losing Ground Albemarle teacher scale compared to other School Divisions in Virginia: Top quartile at steps 0 and 5 Second quartile at all other steps Charioftesville FY 02/03 Top Quartile (32nd) I FY 02~03 Albemarle 12 11/6/2003 Performance Among Virginia School Divisions I,,,.,, ~L>,:~ Of Virginia School Divisions with High,:~;r otanford 9 Scores Grade 4 Grade 6 Grade 9 ~:" ',-"~ ,-,', 3 5 9 Ma'tll 16 6 14 ~~ o, ,.~:! :.,, ,-:,,.:.j, :, 9 4 7 Achievement Graduates taking SAT 8 I% 71% -I 8% ..Mbcmurle \,'A ' Nation:ti SAT Scores 13 11/6/2003 Cost of Living Issues: Charlottesville Metropolitan Statistical Area (MSA) has the 2nd highest Cost of Living of the 8 largest urban areas in Virginia Charlottesville MSA is second only to Northern Virginia Limited affordable housing Top candidates for Albemarle positions have declined due to cost of liVing relative to salary Housing ;Roanoke : ; Richmond ,; Charlottesville Rent ' ' Rent Rent $895 $1,000 14 11/6/2003 30 yr. Employee $49,000 Could $ i 93,000. Median I..louse-$275,450 of Living in Albemarle Rental 1 yr Employee $32,600 Median rental-$1000 !~'~ · ....... [!:2~.&.2; ..................................................................................................................................................................................................................... 30 15 11/6/2003 Recognize C'ville MSA cost of living and consider evaluating options to address this pressing issue or Choose not to recognize C'ville MSA cost of living when considering compensation ,:.~la y ',,¥ith market for all positions or Mentifv p,L~si,'ions hired from outside the adopted market a~ t,., evr:~!uai, e, pay to be more competitive Recogmze C'ville MSA. cost of living and consider evaluating options to address this pressing issue O£ Choose not to recognize C'ville MSA cost of living when considering compensation ld 11/6/2003 Summary-PART Recommend the Joint Boards direct staff to develop strategies that would: ~ Target teacher salaries to Virginia's top quartile . Identify targeted positions (both government and school) for which we recruit.outside of our adopted market and evaluate pay to be more competitive , Evaluate options to address co/st of living issues 17