RPVCCA_CC_SR_2015_03_17_E_Letter_State_Controller_Re_Employee_Comp_AnalysisCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: KATHRYN DOWNS, ACTING DIRECTOR OF FINANCE
DATE: MARCH 17, 2015
SUBJECT: LETTER TO STATE CONTROLLER'S OFFICE
REGARDING EMPLOYEE COMPENSATION ANALYSIS
(Supports 2014 City Council Goal of Government
Efficiency, Accountability, Fiscal Control,
Transparency and Oversight) It
REVIEWED: DOUG WILLMORE, CITY MANAGER 9/l/i A0_
RECOMMENDATION
Authorize the Mayor to sign a letter addressed to the State Controller's Office suggesting
that the state adopt the Rancho Palos Verdes Employee Compensation & Benefits
Analysis as the model for required reporting from all local government agencies.
BACKGROUND
The City prepared an Employee Compensation & Benefits Analysis (the "Analysis") for
calendar years 2013 and 2014. The Analysis presents total compensation for every
employee who worked at the City during the calendar year. Total compensation includes
all forms of pay (wages, allowances, overtime, etc.), and all forms of City -paid benefits
(pension contribution, health insurance, retirement health savings, etc.).
The State Controller's Office (SCO) requires each city in California to report employee
compensation for state-wide centralized public information. The SCO requirements include
Medicare -taxable wages (box 5 of Form W-2) and limited benefits reporting. The City
complies with these requirements each year; and prepares the separate Analysis
described above, which exceeds the SCO reporting requirements.
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LETTER TO STATE CONTROLLER'S OFFICE REGARING EMPLOYEE
COMPENSATION ANALYSIS
March 17, 2015
Page 2 of 2
On March 3, 2015, the City Council requested preparation of a letter addressed to the SCO
suggesting that the state adopt the City's Analysis as the model for required employee
compensation reporting from all local government agencies.
DISCUSSION
The draft letter to the SCO has been prepared (see Attachment A). Staff recommends
approval of the draft letter. As an alternative, the City Council may provide specific
direction for modification of the letter.
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Attachment A
March 4, 2015
Honorable Ms. Betty T. Yee
California State Controller
P.O. Box 942850
Sacramento, CA. 94250-5872
Or...
777 South Figueroa Street, Suite 4800
Los Angeles, CA. 90017
4045 Palos Verdes Drive North
Rolling Hills Estates, CA. 90274
Re: Government Employee Compensation Analysis
Dear Ms. Yee:
On behalf of the City Council, I am writing to you to express our desire that your office
examine the methodologies for salary analysis the City of Rancho Palos Verdes has
adopted for reporting personnel salary costs. While we are all appreciative of the
extensive efforts your office and your predecessor put into place to ensure greater
transparency and ease of research in the public's new-found awareness of public salary
concerns, my fellow Councilmembers and I believe your efforts could be bolstered by an
additional layer of review via inclusion of gross income, not merely the Medicare taxable
income (box 5 of an employee's W-2) to be reported.
I have taken the liberty to attach for your review the 2014 compensation analysis
prepared by our Finance Department, which illustrates the total compensation received
by City of Rancho Palos Verdes employees. My fellow Councilmembers and I are
available at your discretion to discuss our impetus for having delved more deeply into
the world of employee compensation, and would be happy to collaborate with your
office.
Thank you for your continued efforts to bring greater openness and transparency to the
arena of public compensation. We hope our small contribution will be seen as a model,
going forward, of presenting the most complete compensation picture possible so that
the public may be better informed of how their tax dollars are being expended in terms
of public employee salaries.
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Attachment A
Sincerely,
Jim Knight
Mayor
Attachment:
2014 City of Rancho Palos Verdes Employee Compensation & Benefits Analysis
cc: Rancho Palos Verdes City Council
Mr. Doug Willmore, Rancho Palos Verdes City Manager
Ms. Carolynn Petru, Rancho Palos Verdes Deputy City Manager
Ms. Kathryn Downs, Rancho Palos Verdes Acting Finance Director
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