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IV.6. Approval of 2015/2016 Police Officers’ Contract; Genellie (CR2015-113) October 20, 2015 Council Report 2015-113 APPROVE 2015/2016 POLICE OFFICERS' CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2015/2016 Contract for the Police Officers' Association. This action will ratify the 2015/2016 contract with the Police Officers' Association. Overview The contract calls for a 1% wage increase effective January 1, 2015 and a 1%wage increase effective June 28, 2015 with an additional market adjustment of .30/hour. This two year contract also call for a 1.25% wage increase effective January 1, 2016 and a 1.25%wage increase effective June 26, 2016 with an additional market adjustment of .30/hour. The contract also provides for an increase in the City’s contribution for insurance for both 2015 and 2016 which is in line with what other City unions have already settled for. Primary Issues to Consider • How does this agreement fit in with the 2015/16 budget? ______________________________________ James A. Genellie Assistant City Manager Financial Impact: $ $54,000 in 2015 Budgeted: Y/N Not entirely Source:General Fund $65,300 in 2016 Related Documents (CIP, ERP, etc.): Notes: Council Report 2015-113 Page 2 Analysis of the Issues How does this agreement fit in the budget? The City budgeted 2.0% for wage increases in 2015 and 2.5% in 2016. The City also budgeted for an increase in health insurance contributions. The City saves some money by splitting the wage increase during the year. The proposed .30/hour market adjustments, however, pushes the final agreement over what was budgeted by several thousand dollars. Unfortunately, the current labor market for qualified officer candidates is tight. The City of Hopkins essentially finds itself competing with all of the cities in the metro area when hiring new officers. The proposed changes in the officer’s wage schedule maintains the City’s position in the market. Hopkins is in no way at the top of the market but is above the average for cities between 15,000 and 50,000 in population.