1. FY 15 Salary Proposal Budget Commission Meeting April 17, 2014

2. Pay Raise Framework Substantial increase for employees Funds to target salary differentials that result from pay freeze for APS employees and market pay for new hires Funds to target living wage issue Total cost of approximately $15 million, including benefits

3. Proposal All part-time and hourly employees receive 5% increase in hourly rate Full-time employees who have not experienced a salary change in last two years receive a step increase or equivalent Full-time employees who have not experienced a salary change in last four years receive an additional step increase or equivalent All full-time employees receive $1,000 one-time payment, with two exceptions – employees hired after January 1, 2014 would receive only $500 one- time payment – employees receiving two-step increase would receive no one-time payment

4. Salary Impact Number of full-time employees eligible for one-time payment is 2,862. Cost of $1,000 payment would be $2.86 million. Number of part-time/hourly employees is 975. Annual salaries provided for part-time/hourly employees is approximately $15 million. Cost of 5% increase would be $0.75 million. Number of full-time employees without increase in past two years is 3,241 with an average salary of $53,510. Cost of a step (@2.8%) would be $4.85 million. Number of full-time employees without increase in past four years is 2,558 with an average salary of $52,060. Cost of a step (@2.8%) would be $3.73 million.

5. Summary Total cost, before benefits, would be approximately $12 million. Benefits should be less than $3 million. All full-time employees, except those that receive a two-step increase would receive one-time payment. Part-time employees would receive 5% raise. Approximately 60% of full-time employees would receive 2.8% increase. Approximately 47% of full-time employees would receive an additional 2.8% increase.