Memo-2004 Budget, Employee Furloughs
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~ Administrative Services Department
...., Office of the City Manager
Memorandum
To: Honorable Mayor and Members the City Council
From: Steven C. Mielke, City Manager
Date: November 21, 2003
Subject: 2004 Budget~Employee Furloughs
The City Council has asked for additional information on the concept of employee
fu rloughs as part of a 2004 budget.
There are several ways in which furloughs can be enacted and variables associated
with them. Options include:
. Paid or unpaid furlough
. . Scattered days versus concentrated days
. Closing of facilities or keeping facilities open
. All employees versus select groups
In analyzing these issues, it should be pointed out that the greatest savings are
accomplished by closing facilities and not allowing employees to utilize accumulated
vacation or flex leave days. There would likely be no savings if employees were
allowed to pick their days as it accommodates their schedule and allowing them to use
vacation or sick leave.
Based upon staffs discussion, staff would recommend that the Council enact a furlough
program wherein facilities would be closed and employees be allowed to utilize flex
leave or vacation pay, should they choose to do so. Further, it is recommended that
the days selected be scattered throughout the calendar year rather than concentrated
so as to encourage employees who choose to use vacation or flex leave to take
additional days beyond that which they would normally take. This will increase savings.
From a customer perspective, the slowest day of the week is Friday and the closure of
the various facilities on a Friday would have the least impact on customers. Staff has
identified nine (9) Fridays, which are adjacent to holidays, and these dates are
scattered throughout the calendar year.
An additional option was discussed, utilizing the week of Thanksgiving to be closed.
. During Thanksgiving week City Hall is already closed two days of the five-day
workweek, and therefore, an additional three days would close City Hall for that entire
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2004 Budget Employee Furlough
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~ week. Staff does not recommend this option; in that we prefer to scatter the days
~ versus concentrate them.
Finally, I had asked for the flexibility to study whether or not we should include the
police and dispatch personnel in the furlough program.
After discussion, it may be possible to accommodate police department personnel by
scheduling them on days that they have overlap shifts, to work half a day instead of the
full day. The difficulty of this option is that if one person on a shift is absent, it would
require us to bring somebody in on overtime to cover for that period, thus actually
increasing the costs. That being said, staff is now recommending that we do not utilize
police or dispatch personnel as part of this program.
Lori Yager, Finance Director has concluded her review of the savings associated with
furloughs.
With all employees included, the average pay per day is roughly $190 per employee.
She is estimating a per-day savings of $7,000 to $8,000 per day if employees are
allowed to utilize their accrued vacation and/or flex leave, or $11,000 to $12,000
savings per day if employees are not allowed to utilize their accrued leave.
As of the writing of this memorandum, the preliminary budget does not include any
savings from furloughs. Therefore, the addition of furloughs to the budget process will
allow for either a reduction in revenues or freedom within the expenditures budget to
accomplish other priorities.
. Mayorccempfurrough
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