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City of Eugene, Oregon Budget Summary <br />Employee Budgeted Wage Employee Share of <br />Grouu* Adiustment Health Premium <br />AFSCME 2.45% 5.0% of health premium <br />EPEA 3.5% (Pending Arbitration Award) <br />IAFF 2.0% on 7/1/2006 5.0% of health premium <br /> 2.0% on 1/1/2007 <br />IATSE Contract expires at the end of FY06 <br />Non-Represented 3.0% 8.0% of health premium <br />*Where AFSCME is the American Federation of State, County, and Municipal Employees, EPEA is the <br />Eugene Police Employees Association, IAFF is the International Association of Fire Fighters, and IATSE <br />is the International Alliance of Theatrical Stage Employees <br />The second largest type of Personal Services costs are defined benefit expenses, which account <br />for $23 million. The Public Employee Retirement System (PERS) expense continues to be the <br />biggest cost driver; however, the most significant litigation around PERS reforms was resolved <br />earlier this fiscal year. The system-wide impact on rates stemming from the resolution of the <br />lawsuits is expected to result in no substantial change to employer rates in FY07. The end result <br />is a budgeted PERS rate of approximately 29% of payroll in the FY07 budget. <br />A new retirement plan called the Oregon Public Service Retirement Plan (OPSRP) was created by <br />the state legislature for public employees. hired on or after August 29, 2003. OPSRP is a hybrid <br />(defined contribution/definedbeneflt) pension plan administered by the PERS Board. <br />Approximately 7% of the City's employees are in the OPSRP system. <br />Health benefits, budgeted at $16.4 million in FY07, are the third largest component of Personal <br />Services expenses. The FY07 health charge is the same as the rate charged in FY06. This <br />stability is a welcome relief from the double digit increases in past years. Good claims experience <br />in 2005 and a change in plan administration have helped to stabilize the rate. <br />The FY07 Proposed Budget assumes a 2.2% inflationary increase for Materials and Services. <br />Budget by Category <br />All Funds <br />300 <br />250 <br />A 200 <br />0 <br />150 <br />~ 100 <br />50 <br />0 <br />Department Operating Capital Non-Departmental <br />FY06 Adopted ^ FY07 Proposed <br />15 <br />