The City of DeKalb got rid of 30+ employees at the beginning of FY2011 in order to balance its budget. There followed a year of quiet, but now we’re in the midst of a hiring spree.
| YoY Comparison of Full time Equivalent Employees (FTEs) | FY2012 | FY2013 | FY2014 | +/- Over FY2012 |
|---|---|---|---|---|
| Administration | 17.5 | 20 | 22.25* | +4.75* |
| Police | 80.07 | 86.07 | 87.57 | +7.5 |
| Fire | 54 | 53 | 58 | +4 |
| Public Works | 43 | 44 | 44 | +1 |
Here is what it has done to personnel expenses.
| Selected Personnel Expenditures | FY2012 | FY2013 | FY2014 | +/- Over FY2012 |
|---|---|---|---|---|
| Salaries | 12,614,054 | 13,301,207 | 14,163,263 | +1,549,209 |
| Health Ins | 3,320,725 | 3,746,740 | 3,810,939 | +490,214 |
| Pensions/FICA | 4,466,779 | 4,199,324 | 4,870,100 | +403,317 |
And here’s what the FY2014 budget narrative (PDF p. 29) says about the increases:
Total Personnel Services reflect an increase of 4.5% percent over FY2013. Most of this increase is attributable to a 15% percent increase in pension costs. Wages reflect increases based on collective bargaining agreements. Our insurance consultant informed us in March that the City’s health insurance premium will increase by 4.5% percent[.]
The latest pension cost increase is distressing, but in terms of dollars it is neither the only source nor the primary source of rising personnel costs, which make up some 83% of the General Fund budget.
So we’re looking at these expenditures going up $2.4 million over a two-year period. However, personnel expenses as a whole are expected to rise only about $1 million. In my opinion, this has given council and others a false sense of security that our revenues are naturally growing to cover the ongoing, rising expenses — so let’s try to tug the curtain away. Read the rest of this entry