by Alan Pryor
This author previously published an analysis of annual compensation and raises given to City of Davis employees from 2011-2018 and compared them to a government-calculated inflation rate to determine the impacts these raises had on the City budget (see article here). This article updates those disclosures through the calendar year ending 2020.
I. EXECUTIVE SUMMARY
a. Summary of Increases in Total Compensation (Pay and Benefits)
The actual average total compensation (Pay and Benefits) in 2020 for City of Davis full-time, year-round (FT) employees was $163,244 (see Appendix B and below). This is a 10.7% increase from 2019 and far exceeds the annual rate of inflation of 1.5% in 2020 as determined by the US Bureau of Labor Statistics for Bay Area Urban Wage Earners & Clerical Workers ("Bay Area CPI "- see https://data.bls.gov/timeseries/CWURS49BSA0).
The average increase in total annual compensation (Pay and Benefits) for City of Davis FT employees has been 6.0% per year from 2011 through 2020. This is more than twice the average annual rate of inflation of 2.7% during the same period as determined by the Bay Area CPI.
If annual total compensation increases to FT employees had been instead limited to the Bay Area CPI rate of inflation from 2011 to 2020 (i.e.2.7%), the average total compensation otherwise received by FT City of Davis employees in 2020 would have otherwise been $124,169 – or about 24% less than the $163,244 in average total compensation actually received.
b. Summary of Increases in Pay Compensation (without Benefits)
Similarly, the actual average annual Pay (without Benefits) paid to City of Davis FT employees in 2018 was $107,683. This is a 7.0% increase from 2019. The average increase in annual Pay (without Benefits) for City of Davis full-time, year-round (FT) employees has been 4.6% per year from 2011 through 2020 compared to the average annual rate of inflation of 2.7% during the same period as determined by the Bay Area CPI.
If annual Pay increases to FT employees had been limited to the Bay Area CPI rate of inflation from 2011 to 2020 of 2.7%, the average Pay otherwise received by FT City of Davis employees in 2020 would have instead been $92,439 – or about 14.2% less than the $107,683 average Pay actually received.
c. Summary of Impact of the Excessive FT Employee Compensation on the City's Budget
The annual differences (i.e. payroll savings) between the actual total Pay and Benefits paid by the City to all FT employees from 2012 through 2020 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 $12.387 Million in 2020.
On a cumulative basis, the City has paid in excess of $54 Million more to FT employees in Pay and Benefits from 2012 through 2020 compared to if annual total compensation increases otherwise been held to increases based on the Bay Area CPI.
That additional $54 million 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 and fair annual increases in employee compensation to match inflationary pressures on their costs of living.
The most recent trend in accelerating employee salaries and total compensation is ironic given the current City Council's self-proclaimed fiscal responsibility and laser-focus on cost containment.
Davisite 