Dealing with Organizational Legacy Costs Presented by City Manager Sheryl Sculley City of San Antonio, Texas
C ITY OF S AN A NTONIO • 467 Square Miles • 1.4 Million Population • $2.4 Billion City Budget • 11,700 Employees • “AAA” G.O. Bond Rating Moody’s, S&P and Fitch
G ENERAL F UND P ROJECTION
Public Safety Costs Fiscal Threat to City “Police and Firefighter health care packages are richer than the city can afford…the status quo is untenable.” Battle Brewing over SAPD and SAFD Benefits
Warning Signs for City Health Costs “Employees will need to contribute more towards health insurance…it’s not pretty, but neither would be bankruptcy” Unions Need to Return to Negotiations “San Antonio’s quality of life should not be crowded out of the budget so public safety workers, and their families, can have gold-plated health care benefits.” “San Antonio sides with City on Contract Negotiations”
H OW D ID W E G ET T HERE ? Establish credibility 1 Provide context 2 Tell the story 3
E STABLISH C REDIBILITY 13-M EMBER T ASK F ORCE Recommendations Align uniform healthcare benefits with civilians and other peer cities Uniform employees should begin contributing a monthly premium
E STABLISH C REDIBILITY D O Y OUR H OMEWORK • Strong analysis • Focus on the facts I NDEPENDENT C ONSULTANTS
P ROVIDE C ONTEXT GENERAL FUND BUDGET $1.05 Billion CPS Revenues Property Tax Other Operating Departments - $245M $316 M, 30% $268 M, Non Departmental 26% Human Services & Agencies Library Municipal Court Code Enforcement Health Animal Care Police* & Finance Fire City Attorney & Intergvt Relations City Auditor/City Clerk & Elections $691 M Transfers Center City Development Mayor & Council Planning, Eastpoint, & Historic Preservation One-Time Projects Human Resources Communications & Public Affairs Sales Tax Other Economic Development $253 M, Resources Management & Budget 24% City Manager $209 M, * Police Budget includes Parks Police 20%
P ROVIDE C ONTEXT C OMPARISON TO P EER C ITIES “San Antonio is the only major city in Texas where uniform employees pay no health-care premiums for dependents and families...” San Antonio Express News
P OLICE O FFICER (R ANK & F ILE ) COMPENSATION WITH 20 YEARS OF S ERVICE ( AS OF S EPT . 30, 2013) $130,523 $124,668 $106,813 $105,584 $96,772 $95,992 $90,647 Austin San Antonio FT Worth Dallas El Paso Corpus Christi Houston Base Wage Special / Premium Pays Benefits
F IRE F IGHTER (R ANK & F ILE ) COMPENSATION WITH 20 YEARS OF S ERVICE ( AS OF S EPT . 30, 2013) $110,499 $110,296 $93,992 $91,118 $85,522 $84,222 $77,858 Austin San Antonio Fort Worth Dallas Houston El Paso Corpus Christi Base Wage Special / Premium Pays Benefits
P ROVIDE C ONTEXT M ORE THAN 400 OF S AN A NTONIO ’ S 500 HIGHEST - PAID CITY EMPLOYEES ARE UNIFORM EMPLOYEES Police and Fire Civilian
T ELL THE S TORY PUBLIC SAFETY AS % OF GENERAL FUND 68.5% 66.5% 66.0% 64.0% 62.6% May Proposed 62.4% 62.3% 2014 2015 Forecast Budget 58.3% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015
T ELL THE S TORY P UBLIC S AFETY G ROWTH C OMPARED TO R EVENUES ( PAST 10 Y EARS ) 5.6% Public Safety Compound 4.1% General Fund Revenue Annual Growth Rate Compound Annual Growth Rate
T ELL THE S TORY
R ESULTS FY 2015 PROPOSED BUDGET UNIFORM HEALTHCARE PROPOSAL $12,758 per Uniform $10,000 (current) per Uniform (proposed alternative July 2014) $7,080 per Civilian
R ESULTS “70 percent of respondents said they support having public safety personnel contribute to the cost of healthcare, such as by paying monthly premiums, as other City employees do” - 2014 City of San Antonio Community Survey “The community values public safety workers. They put their lives at risk for our safety. But their health benefits are excessively rich and out of line with the tax base they serve” - Express News Editorial Board August 14, 2014
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