On July 18, the San Rafael City Council approved a 4 percent pay cut for all city employees and a reduction in pension benefits for new workers.
“The compensation reduction will help balance our current budget, but the pension cost savings will help us reduce costs over the long term,” Mayor Al Boro said.
The pay cuts are shared equally among safety and administrative employees and will save the city $1.4 million, according to Assistant City Manager Jim Schutz.
The 4 percent cut, which will continue for two years, follows two years of furloughs for non-safety employees. “This means that many San Rafael employees will see their compensation reduced four years in a row – in response to the effects of the severe national recession,” Schutz said in a statement.
Fire and police department employees will retire with 3 percent of their highest three-year average salaries at age 55, instead of their highest year’s salary and cost of living will be reduced.
New employees will retire at 55 and receive a pension benefit of 2 percent, instead of 2.7 percent.
“Our city staff has been reduced by over 60 positions over the last few years and will see continued compensation reductions,” City Manager Nancy Mackle said.
Administrative employees will now work a 36-hour work week, instead of 37.5 hours. will no longer have furloughs and council members will continue a 5 percent pay cut in their salaries.
“I appreciate our city employees agreeing to these compensation reductions,” Boro said. “Not only do our employees deliver high quality services to our residents, but they also do their share in assisting the city get through the financial effects of the recession.”