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HomeMy WebLinkAboutMemo - Read Before Packet - 09/24/2024 - Memorandum from Teresa Roche and Kelley Vodden re Talent Costing Impact for 2025 and 2026 Budget YearsHuman Resources Department 215 N. Mason St, 2nd Floor PO Box 580, Fort Collins, CO 80522 970-221-6535 humanresources@fcgov.com MEMORANDUM Date: September 22, 2024 To: Mayor and City Councilmembers Through: Travis Storin, Chief Financial Officer From: Teresa Roche, Human Resources Executive Kelley Vodden, Director of Compensation, Benefits, and Wellness Subject: Talent costing impact for 2025 and 2026 budget years BOTTOM LINE HR has been asked to provide the financial impact related to the current compensation strategy for the 2025 and 2026 budget. Specifically, the costs associated with the incremental total compensation for each budget year respectively, in addition to the .5% incremental costs for each budget year. This information is depicted below for both City-Wide and the General Fund separately: Salary Cost Benefit Cost Total Compensation 2025 4% Total Increase 171,402,482$ 54,063,900$ 225,466,382$ 2025 Incremental Cost 6,404,263 1,078,212 7,482,475 .5% Increment Equiv.800,533 134,777 935,309 2026 3% Total Increase 176,417,675$ 56,359,038$ 232,776,713$ 2026 Incremental Cost 5,002,468 847,736 5,850,204 .5% Increment Equiv.833,745 141,289 975,034 Salary Cost Benefit Cost Total Compensation 2025 4% Total Increase 80,436,839$ 25,330,558$ 105,767,397$ 2025 Incremental Cost 2,982,377 534,141 3,516,518 .5% Increment Equiv.372,797 66,768 439,565 2026 3% Total Increase 82,767,707 26,407,464 109,175,171 2026 Incremental Cost 2,326,269 421,444 2,747,713 .5% Increment Equiv.387,712 70,241 457,952 City-Wide Talent Costing General Fund ONLY Talent Costing Docusign Envelope ID: 8EA298A8-768F-4454-9739-3BDC156375CE NEXT STEPS If there are additional follow-up items as a result of this information, please let us know and we are happy to provide more information if needed. Docusign Envelope ID: 8EA298A8-768F-4454-9739-3BDC156375CE