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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Bill Greene, Chief Financial Officer |
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PRESENTER(S): |
Brad Armstrong, Director Budget and Financial Strategy |
TITLE:
title
Draft Operating Budget Amendment #1 - Bargaining Contract and Administrative Market Rate Compensation Adjustments
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational item for discussion.
BACKGROUND:
UTA and ATU Local 382 negotiated and agreed upon a new Bargaining agreement which was ratified recently by represented members of the bargaining unit and the UTA Board. The term of the new contract is for three years ending in December of 2025. Ratification of this contract will result in higher compensation costs than are currently reflected in the 2023 Operating Budget.
In addition, the UTA People Office engaged in labor market studies to assess whether compensation for various administrative positions within UTA are set at a level to be competitive to retain and attract the right people to work at UTA. The People Office identified a number of positions that they recommend should have their compensation levels increased to competitive levels. Implementation of these recommendations will result in increased costs which are not currently reflected in the 2023 Operating Budget.
DISCUSSION:
The terms of the newly ratified Bargaining agreement will result in increased compensation expenses for UTA in 2023. UTA is proposing to increase the budgeted costs in the Amended 2023 budget by $7.74 million to reflect these changes. Included in these costs would be additional wage, fringe benefits and leave expenses.
The labor market studies performed by the People Office identified a number of administrative positions that have compensation levels that are below those reflected in the current market for the same positions. The People Office recommends that compensation for the identified positions be adjusted to reflect the market value of these positions more closely. These adjustments are designed to help UTA be more competitive in both retaining and attracting talented individuals to administrative positions within the organization. The proposed adjustments will require an additional $1.01 million increase in the Amended 2023 Budget if so approved.
We would also note for informational purposes that there have been several moves of positions between various UTA departments since the approval of the 2023 Operating Budget. As a result of these moves, costs have changed in various budget mode categories shown on the Operating Budget Exhibit A and A-2. However, these moves resulted in no net change in overall costs in the budget.
We will be bringing this proposed amendment to the Local Advisory Council on May 31st for their consultation before requesting the Board’s final approval in June 2023.
ALTERNATIVES:
Trustees may request revisions to this proposed budget amendment.
FISCAL IMPACT:
Additional budgeted expense in 2023 of $7.74 million associated with the ratified agreement with the ATU. An additional $1.01 million in budgeted expense in 2023 associated with administrative market rate compensation adjustments. Total proposed increase to be reflected in the Amended 2023 Budget of $8.75 million.
ATTACHMENTS:
Proposed 2023 Amended Operating Budget Exhibits A and A-2