2012 COMPENSATION STUDY RESULTS July 18, 2012 Board of Aldermen Worksession

2012 Compensation Study Results  Summary of Results  Overview of the Process  Benefit Results  Salary Results

RESULTS Summary  Below Market  Salaries  Retirement Plan Design L7  Above Market  Employee Contributions – Insurance  Insurance Plan Design – Deductibles/Copays  Holidays  Leave Maximum Accruals & Pay-Out  Sick Leave Buy-Back Program  Equal Market  Retirement – Defined Benefit Plan  Tuition  Leave Annual Accruals

Compensation Study Overview  Determine Comparators  Job Description Review  External Equity  Internal Equity

MunicipalGeneral Industry & Other Determine Comparators  Arnold (pop 20,808)  Ballwin (pop 30,404)  Chesterfield (pop 47,484)  Creve Coeur (pop 17,833)  Lake St. Louis (pop 14,545)  Manchester (pop 18,074)  O’Fallon (pop 80,860)  St. Charles City (pop 65,794)  St. Charles County (pop 360,485)  St. Peters (pop 52,575)  SLACMA  SLAPCA  Occupational Employment Statistics (DOL & BLS)  Duckett Creek

Job Description Review & Update  123 Job Descriptions were reviewed  Five Levels of Review  Employee  Supervisor  Department Director  Human Resources  Final Department Director  Focus of Review  Essential Duties & Responsibilities  Skills & Qualifications  Compliance with Americans with Disabilities Act  Compliance with the Fair Labor Standards Act

Job Description Review & Update  Standard Elements Added for Performance Review  Customer Service  Policy Compliance  Cooperation  Employee Development  Performance Management  Purchasing  Budgeting

External Equity Process  Benefit Survey  General Industry Data – BLS Employee Contributions & Copays  Health Insurance Plan Design  Spousal Surcharge  Salary Survey  General Industry Data – DOL and BLS  Positions Matched to Job Description NOT Title

Internal Equity Process  Market Minimum Salary Grade Established  Minimum of Municipal Comparators  Median of DOL for the St. Louis Metropolitan Area Less 20%  Remove the High/Low  Place in Closest Grade  Grade Placement Internal Review  Director Positions Reviewed by Mayor and Acting City Administrator  Positions below Director Level Reviewed by Directors

Benefit Review History  Medical Insurance  Contributions and Plan Design  Dental Insurance  Contributions and Plan Design  Vision Insurance  Life Insurance  Long Term Disability  Flexible Spending Accounts  Employee Assistance Program  Retirement  Tuition Assistance  Sick Leave Buy-Back – Included in Union Agreement  Sick Leave Pay-Out  Leave Accruals

Areas of Special Interest  Spousal Surcharge  Not Substantiated by Market Review  Self Funded Program  6 Comparators – Self-Funded  Average Stop Loss Level $130,000 – Wentzville $75,000  2 Comparators – Insurance Pool  2 Comparators – Fully Insured  LAGERS Retirement Program  7 of 9 Comparators Offer LAGERS (Defined Benefit)  1 Offers a Lower level Plan Design than Wentzville  6 Offer a Higher Level Plan Design than Wentzville  2 of 9 Comparators Offer 457 b Plan (Defined Contribution)  Note the funding levels average 8% of salary  1 Comparator Did not Report  General Industry  Funding levels average 6% of salary – no limit on employee contribution

Benefit Results 2012 COMPENSATION STUDY SUMMARY OVERALL MARKET COMPARISON FACTOR WENTZVILLE CURRENT COMPARE TO WENTZVILLE MARKET +INCREASE/-DECREASE TO MEET MARKET PEPM BASE SINGLE HEALTH CONTRIBUTION$0> $38 BASE FAMILY HEALTH CONTRIBUTION$10> $225 ENHANCED SINGLE HEALTH CONTRIBUTION$60> $62 ENHANCED FAMILY HEALTH CONTRIBUTION$160> $264 SINGLE DENTAL CONTRIBUTION$0> $4 FAMILY DENTAL CONTRIBUTION$5> $30 SINGLE VISION CONTRIBUTION$0> $6 LIFE INSURANCE EMPLOYEE ONLY$0= FSA ALLOWED$1,500< $2,830 DEPENDENT CARE ALLOWED$5,000= EAP$0= LAGERS$0= TUITION ASSISTANCE MAX$2,500= SICK LEAVE BUY-BACK$0 3 comparators offer an incentive SICK LEAVE PAY-OUT720 hours 4 comparators offer a similar program SPOUSAL SURCHARGE$0= INDIVIDUAL DEDUCTIBLE$0> $1,000 FAMILY DEDUCTIBLE$0> $2,000 INDIVIDUAL OUT OF POCKET MAX$1,500= FAMILY OUT OF POCKET MAX$3,000> $3,500 OFFICE VISIT COPAY$25= SPECIALIST COPAY$25> $40 EMERGENCY ROOM COPAY$150> $250 URGENT CARE COPAY$50=

Salary Review History - Matrix  Salary Matrix  Grade Established for Each Position  Minimum – New Hire Rate  Midpoint – Average Market Value for Experienced Individual  Maximum – Highest Achievable Salary w/o Promotion

Salary Review History – Current Pay Plan  Annual Market Pay Adjustments  Given Across the board Annually Based on Budget  Employees on progressive discipline DO Not Receive Increase  Promotion  Individuals Promoted receive Minimum of new Grade or 0-7% per grade increased  Individuals Serving Temporarily Receive Increase to Minimum  New Hires  Starting pay from Minimum to Midpoint – CA Approval  Special Adjustments – NEVER UTILIZED  Increase Outside of Annual Adjustment or Promotional Increase  Requires Written Documentation of Superior Performance  Requires Consensus of ALL Department Directors

Salary Review History  2010 Last Study Implemented  Market Adjustment  Recommended 2.5%  Budgeted 1.5%  No Grade/Range Adjustment  Internal Equity Adjustments  Recommended 2.5%  Budgeted 0%  Adjustments to Minimum  Implemented  2011  Average Comparator 2.01%  Budgeted 0%  No Grade/Range Adjustment  2012  Average Comparator 1.7%  Budgeted 0%  No Grade/Range Adjustment

Salary Results  Grade Minimum Established  Average Grade Minimum for Comparators was Established  Position Match – 5 or more comparators  Position Non-Match – Less than 5 comparators  The High and Low were removed from the data  Range Placement Review  Human Resources Review – External Equity  Positions with Match were placed in the closest Grade either up or down  Positions with No Match were left in current Grade or adjusted with Job families  Additional Review – Internal Equity  Mayor and Acting City Administrator Reviewed Director Level Positions  Directors Reviewed Positions Below Director Level  Final Range Placement

Salary Results SALARY MARKET ADJUSTMENTS0%< 3.37% SALARY RANGE MINIMUMS < SALARY INTERNAL EQUITY ADJUSTMENTS<

Cost Models Meet Average Market (ESTIMATES ONLY)  Benefit Contributions to Meet Market  Health/Dental/Vision - $450,000  Benefit Plan Design Changes to Meet Market  Several Options w/ Estimated Savings of $100,000-$700,000 Annually  Self Insurance Pools  Fully Insured Plans  High Deductible Plans  Continue Self Funded Plan – Increase Stop Loss Level, Change Plan Design to Meet Market

Option #1Option #2 Cost Models to Meet Average Market (ESTIMATES ONLY)  Adjustments to Minimum in Recommended Pay Grades - $188,000 – plus  Internal Equity Adjustment –  Not to Exceed Midpoint A.2% - $287,000 B.2.5% - $359,000 C.3.0% - $431,000 D.3.25% - $467,000 E.3.5% - $503,311 F.3.75% - $539,263 G.4.0% - $575,214  Market Adjustment Only - $391,000 - plus  Adjust to Minimum - $72,000 - plus  Internal Equity Adjustment  Not to Exceed Midpoint A.2% - $287,000 B.2.5% - $359,000 C.3.0% - $431,000 D.3.25% - $467,000 E.3.5% - $503,311 F.3.75% - $539,263 G.4.0% - $575,214

Next Steps  Mid Year Budget  Requested Positions  Eliminate Lieutenant Support Services  Add - Sergeant – Professional Standards  Add - Sergeant – Special Services  Add – Communications Officer  Unfreeze – Records Clerk  Unfreeze – Code Compliance Inspector  Unfreeze – Building Safety Inspector  Add – Public Information Officer (Midyear or 2013)  Sick Buy Back Program  Included in the Union Agreement  2013 Budget Preparations  Insurance Renewal – Plan Design Changes  Employee Contribution Amounts  Salary Adjustments  Additional Personnel Requests

HR Next Steps  Position Appeal Process for Employees  Develop a Pay for Performance Plan  Update Policies  Review Leave Program

Questions?

SUMMARY HISTORY OF CITY FUNDING LEVELS FOR BENEFITS MEDICAL EE (PEPM)$380 $405$396$474 $520 MEDICAL FAMILY (PEPM)$942 $1014$1016$1336 $1435 DENTAL EE (PEPM)$25$20 $25 DENTAL FAMILY (PEPM)$65$50 $82 VISION EE (PEPM)$4 LIFE EE (PER $1000 SALARY)$2 LONG TERM DISABILITY (PER $100 SALARY)----$.42 FSA DEPENDENT CARE EAP (PEPM) RETIREMENT REGULAR (% OF SALARY)8.20%7.60% 8.60%9.60% 9.80%9.30% RETIREMENT POLICE (% OF SALARY)8.50%8.10%7.90%8.90%9.90% 10.40%9.80% TUITION, SICK LEAVE BUY BACK, SICK LEAVE BUY OUT, VACATION LEAVE PAYOUT ARE BASED ON UTILIZATION