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Fort Walton Beach Council agenda — 06-01-2010 Special-2010/2011 Budget Policy Workshop — reading text
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FY 2010. 11 Budget Policy Meeting
PAID HOLIDAY FURLOUGHS
ALTERNATIVE
Background
1. The City currently observes 10 paid holidays each year:
New Year' s Day Martin Luther King Memorial Day 4th of July Labor Day
Veteran' s Day Thanksgiving Day after Thanksgiving Christmas Eve Christmas Day
2.
Employees required to work holidays receive holiday pay in addition to their hourly rate.
Discussion
1.
Furlough days are preferable to pay cuts from a morale perspective because they do not result in
a permanent reduction in hourly rate of pay. Sick and vacation accruals are not affected either.
2. Police and fire personnel are required to work 24/7, as well as a few utilities personnel. Those
employees would see their pay reduced to 100% on days worked that are eliminated as holidays.
3. Ten unpaid days is essentially a 3. 85% pay cut for employees working 2080 hours /year.
4. Paid holidays would be added back in future years as revenues recover, salary expense is
reduced through attrition, and other reorganization changes are implemented.
Policy Impact
1.
Citizens are accustomed to the City being closed these 10 days.
2. Non -working employees would be unpaid for these 10 days.
3.
Employees required to work would have their pay reduced to 100 %.
4. General Fund Savings: approx. $ 405K for all 10 holidays due to general employees being unpaid
and police /fire being reduced to 100 %.
5. Citywide Savings: approx. $ 581 K for all 10 holidays.
6. Changes affecting union members would have to be negotiated.
Millage Rate Increase Required to Fund at Current Status
0. 3737 mills required to sustain $ 405K for wages and benefits.
Budget Impact
Convert the City's 10 paid holidays to furlough days in FY 2010 -11, with working personnel receiving
100% instead of 200% pay.
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