Effects of Increases in City of Davis Employee Compensation from 2011 to 2018 on the City's Current Budget Crisis
by Alan Pryor
EXECUTIVE SUMMARY
The actual average increase in total annual compensation (Pay and Benefits) for City of Davis full-time, year-round (FT) employees has been 5.9% each year from 2011 through 2018. This is more than twice the average annual rate of inflation of 2.8% during the same period as determined by the US Bureau of Labor Statistics for Bay Area Urban Wage Earners & Clerical Workers. The actual average increase in salary without benefits (Pay) has been 4.5%.
The actual average annual total Pay and Benefits paid to City of Davis FT employees in 2018 was $144,115. Compare that to the average annual total Pay and Benefits of $118, 640 that would have alternatively been paid in 2018 if annual increases in total compensation had instead been held to the annual CPI increases since 2011.
Similarly, the actual average annual Pay (without Benefits) paid to City of Davis FT employees in 2018 was $97,834. Compare that to the actual average annual Pay of $88,324 that would have been paid to FT employees in 2018 if annual increases in payroll-only compensation had instead been held to the annual CPI increases since 2011
For comparison, median earnings for FT private sector workers in Davis was $63,125 in 2018. City employees thus received an average 55% greater Pay ($97,834/$63,125) and 128% more in Pay and Benefits ($144,115/$63,125) than FT private-sector workers in 2018.
The annual differences between the actual total Pay and Benefits paid by the City to all FT employees from 2012 through 2018 and that which would have been paid if annual increases had instead been held to the CPI is very substantial and ranges from $3.645 Million in 2015 to $7.668 Million in 2018. On a cumulative basis, the City has paid in excess of $34 Million more to FT employees in Pay and Benefits from 2012 through 2018 had annual payroll increases otherwise been held to increases based on CPI.
That additional money could have been very beneficially used in the intervening years to resurface many additional miles of the Davis streets and bike paths in most need of repair while still providing adequate annual increases in employee compensation to match inflationary pressures on their costs of living.
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