Employee support may clear way for Tempe budget remedies

First-ever agreement would allow city to save jobs

Tempe, Arizona – Representatives from City of Tempe employee groups have engaged in discussions to forgo annual salary range adjustments in order to assist the city’s efforts to cut expenses, paving the way for the preservation of jobs, as well as services to the community.

Tentative support expressed by representatives of two of Tempe’s employee groups – Service Employees International Union (SEIU) and the International Association of Fire Fighters (IAFF) – will be followed soon by ratification votes by the groups’ members. If successful, the solution would be the first time city employee groups have agreed to waive market survey adjustments.

Each year, the Tempe Human Resources Department undertakes a survey of all its salary ranges, comparing them to the wages offered in other select Valley cities. The survey has been billed as a recruiting tool for the city. Some salary ranges move up following any given survey, while others remain constant.

The salary adjustments that resulted from the city’s recently completed study would have gone into effect in January. The resulting hike in approximately 800 employees’ salaries was projected to cost Tempe $639,000 in the 2008-2009 budget year. The increase also would have cost Tempe about $1.2 million in each of the next five fiscal years.

Once the proposed agreement is approved, Tempe can count on the resulting savings among a list of other cost-cutting measures as it moves toward balancing the city budget by 2011-2012. A $25 million pool of funds reserved from prior years is being used to create a “soft landing” for the city as it moves toward a balanced budget.

“Tempe’s employee groups have demonstrated true understanding and care for their city and its ability to provide services to residents, businesses and visitors,” said City Manager Charlie Meyer. “We are appreciative of their support in helping us solve our current budget issues and laying the groundwork for a healthier financial future.”

If the members of the employee groups vote to ratify the tentative agreement, the Tempe City Council would consider the issue Jan. 8 at their regular meeting. A full plan for how to balance the budget, including recommended reductions in positions, will be presented to the City Council in February.

Technorati Tags: Arizona, Budget, Charlie Meyer, City of Tempe, IAFF, International Association of Fire Fighters, jobs, SEIU, Service Employees International Union, Tempe