Archive for March 15, 2013

Captain Rick: Gilbert, Arizona: 5 of 7 council members voted on March 7, 2013 to increase employee compensation by $12 million during the coming year…a cost of $60 for each of Gilbert’s 220,000 citizens. A recent market study conducted by a consulting firm stated that Gilbert employees are paid 2% below the private sector and 13% below the public sector in the Phoenix area. 5 council members voted to use an average of these percentages to raise employee salary mid-points to be 6.5% above the private sector. 2 council members voted to scale back the mid-point from 50% to 45%, effectively promoting a 1.5% increase above the private sector.

I found the employee compensation study remarkable, but not surprising, that it shows that Gilbert lags the public sector by 13% and the private sector by 2%, an 11 percentage point difference. It leads me to draw one of two conclusions. Either the public sector is overpaid by 11 percentage points or the public sector is 11 percentage points less productive. Based on my perception of the public sector over many decades, I suspect the reason is a combination of both. A 2% increase in Gilbert job scales to bring them equal to the 50th percentile of the private sector is justifiable. 2 council members offered a 1.5% premium on top of that. It was rejected by the other 5 members who voted for a 6.5% premium. In my opinion, they do not understand math or economics.

This legislation contained great improvements to the way Gilbert currently manages employee compensation. It is such a shame that 5 members of our council had to bastardize it by NOT listening to the common sense presented by the other 2. Gilbert should be a leader of efficiency, not a follower of inefficiency, which this vote provides. I hope that this post will help draw these 5 members back to reality to find a way to correct this gross travesty they have cast upon the citizens of my town of Gilbert, the place I have loved to call home for over 15 years.

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Captain Rick presents the first Gilbert Council PROPER VOTE award of 2013 to Victor Petersen and Jared Taylor for voting NO on this issue.

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Your PROPER VOTE has been registered on Captain Rick’s Gilbert Council Scorecard: https://atridim.wordpress.com/gilbert-council-scorecard/

How much increase in pay can Gilbert employees expect?

Based on data from Gilbert’s 2012-2013 Budget (link below), if we divide the $11,900,000 expenditure approved by this vote, by 1201 Gilbert employees, the resultant is an average of 12.3% pay increase or $9,909 annually. The average Gilbert salary will be $90,748. That is one heck of a salary. I am wondering how many private sector employees make a salary as lucitive as this and if Gilbert has too many high paid ‘Chiefs’ and well paid ‘Indians’?

Gilbert’s 2012-2013 Budget: http://www.gilbertaz.gov/budget/pdf/2012-13%20BUDGET%20DOC%20-%20WEBfinal.pdf

Supporting data details:

General fund:

869.32 employees (page 66) at a cost of $74,059,895 (page 68).

$8,000,000 in pay increases, approved by this vote, results in an average 10.8% pay increase of $9203 annually.

Non general fund:

Enterprise: 238.93 positions (page 66) at a cost of $15,908,094 (page 150)

Streets: 51.3 positions (page 66) at a cost of $3,445,856 (page 200)

Internal service funds: 26 positions (page 66) at a cost of $1,685,730 (page 212)

Capital Projects: 5.75 positions (page 66) at a cost of $555,040 (page 240)

Special Revenue: 9.6 positions (page 66) at a cost of $1,434,000 (page 226)

Total Non-Gen: 331.58 positions (sum) at a cost of $23,028,720 personnel costs (sum)

$3,900,000 in pay increases, approved by this vote, results in an average 16.9% pay increase of $11,762 annually

Total costs: $74,059,895 (General fund) + $23,028,720 (Non-General funds) =  $97,088,615

Average salary with approved increase

$97,088,615 (Total costs) + $11,900,000 (approved increase) = $108,988,615  / 1201 employees = $90,748

Note: All financial figures include employer contributions to Social Security, retirement and healthcare.