1. Contract Negotiations calcs, base salary, ATB etc.
Gabriela V. Simoes Dos Santos, CFO - Harrison

2. Getting Technical Important statistics: 101 & 187
The number of petitions and open claims prior to 1/1/11 for Binding Interest Arbitration
20 & 17
The number of petitions and open claims in 2015 & 2016 for Binding Interest Arbitration
1.73%
The effective % raise for the 9 voluntary settlements in 2015 after interest arbitration was initiated.
1.71%
The effective % raise for the 6 arbitration awards in 2015.
Source – 2014 & 2016 Final Reports of the Police and Fire Public Interest Arbitration Impact Task Force

3. Getting Technical 1.90% & 4.69% Why the 80% reduction in petitions?
Why the 90% reduction in open claims?
2% CAP on Interest Arbitration
Effective 1/1/11
Renewed 2014
Sunsets 2017
1.90% & 4.69%
The average effective % increase on arb awards vs the average effective % had terms of the expired contracts repeated in successor contracts.
Source – 2014 & 2016 Final Reports of the Police and Fire Public Interest Arbitration Impact Task Force

4. Why does it matter? BASE SALARY
The salary provided pursuant to a salary guide or table and any amount provided pursuant to a salary increment, including any amount provided for longevity or length of service. It also shall include any other item agreed to by parties, or any other item that was included in the base salary as understood by the parties in the prior contract. Base salary shall not include non-salary economic issues, pension and health and medical insurance costs.
ACROSS THE BOARD (ATB)
Traditionally, step increases, longevity, stipends etc., are given automatically on an annual basis until an employee reaches the top of the guide. These monetary benefits are typically above and beyond the percentage ATB increases documented in contracts and result in a much higher EFFECTIVE increase.
EMPLOYEE COMPENSATION DISCLOSURE FORMS
Source – 2014 & 2016 Final Reports of the Police and Fire Public Interest Arbitration Impact Task Force

5. Getting Technical
N.J.S.A 40: 5 – 49 – Employee Compensation Disclosure Forms (ECDFs)
WHAT are they?
Estimated/itemized cost of salary, benefits etc., for each individual or group of employees at the time of the action AND the incremental change year-year.
WHEN & WHERE do we as CFOs have to file them?
PRIOR to publication (minimum of 10 days before a meeting) the CFO must make ECDFs available to the Clerk/ or Secretary to the Governing Body.
WHY are they relevant now?
Because they did not exist before…
Proposed New Rules N.J.A.C. 5:30–18.1 – Appendix A (CNA) & B (No CNA)

6. INFORMATION

7. Spreadsheets, a CFO’s best friend…
Prepare your spreadsheets modeled after the arbitration matrix/ECDFs
Base Salary
Final year of expired agreement (last 12 months)
Prorate retirements/new hires in final year (savings, promos etc. are spec)
Break out Salary, Longevity and “Other Costs” considered “Base Salary”
Make them formula driven
The results are incremental which you will need to fill out ECDFs
Other Economic Items
Non-salary economic issues such as detective and EMT stipends are excluded from Base Salary but NOT from your spreadsheet!

8. CATEGORY SPREADSHEET BASE SALARY OTHER ECONOMIC N/A
NAME
INPUT X
TITLE / RANK
DATE OF HIRE
YEARS OF SERVICE
FORMULA
LONG %
BASE WAGE
% RAISE NEG
FIREARM STIP.
SUBTOTAL
DETECTIVE STIP
SICK LEAVE INC.
CLOTHING
This table is for illustrative purposes only, categorization as “Base” or “Other” depends on how those wages are applied in each CNA.

10. But it’s only 1.75%?
Before ANY increase, the budget is increasing 2.83%
This is due to LESS than ½ of the department moving up on steps and longevity.
BTW - this would NOT fly in Interest Arbitration
1.75% ATB
Effective increase on Base Pay is 4.63%
$250 per detective & $75 per officer for clothing
Effective increase on other Economic items 8.76%
Total proposed contract changes
Effective increase 4.69%
Qualitative issues are JUST as important:
Work schedule, how salaries rank, etc.

11. Employee Comp Disclosure Form Budget Projections
ECDF:
Salary costs in Base Year
Longevity costs in Base Year
Other Base Year costs
Increases year 1, year 2, year 3…
Base Salary increase
Longevity increase
Other increase
Dollar increase / % increase
Budget Projections:
S & W Line Items
Long term planning
Planning around:
New hires
Retirements
Attrition

12. There’s more… Health Department “Age” Pensions Pension Tiers
Employer contributions for PFRS – 27%
Employer contributions for PERS – 13%
Employer contributions for DCRP – 3%
Health
Change in Chapter 78 contributions
Department “Age”
Projecting retirements and accumulated leave payouts
Projecting new hires

13. Finally… I’m done… THINK AGAIN!
READ & REREAD & THEN READ YOUR CONTRACTS AGAIN!!!
Familiarity can lead to error
Negotiated changes from one contract to the next could be overlooked
Interpretation could be incorrect
Distribute changes to the appropriate parties

14. Great resources… http://www.nj.gov/perc/IATaskForceFinalReport.pdf
port%20&%20Tabs%20A-G%20(2).pdf
_99_100_15.pdf
138%20(49%20NJR%201969(a)).pdf