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City manager takes $65,000 cut in salary
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Manteca City Manager Steve Pinkerton was supposed to make $230,000 in the fiscal year that started Friday.

It was part of an ironclad contract he signed with the Manteca City Council when they hired him three years and 16 days ago.

Instead Pinkerton will now earn $165,000 a year.

The $65,000 drop in salary reflects an almost 30 percent reduction in compensation since 2008. It mirrors the combined percentage of concessions that other city employees have taken over the past three years as well as in the 2011-12 fiscal year that now underway.

“It wouldn’t be right for us (management) not to take the same hits that other city employees have been asked to take,” Pinkerton said.

The executive management team is one of three bargaining groups the city has already come to terms with in a bid to eliminate the projected $4.2 million deficit for this fiscal year. The deficit was based on the amount of money in salary and benefits that was in excess of city revenue.

The agreements with bargaining groups are also designed to end the stuctural deficit created by a shortfall in funding of pensions.

Each bargaining group was given a number that they had to come up with that reflected their share of the overall budget that had to be reduced proportionately to come up with $4.2 million in annual savings. Each group used slightly different ways of getting to their assigned number.

Bargaining groups that fail to meet the goal will have the difference made up in layoffs within their collective bargaining unit.

The executive management team includes the police chief, fire chief, assistant city manager, public works director, and the community development director.

The highlights of the agreement for the executive management team include:

• Management nearly doubled their contribution to the California Public Employees’ Retirement System (PERS) with non-safety management at 19 percent and the police and fire chiefs at 22 percent.

• A mandated 72 hours of unpaid furlough time each year equivalent to a 3.46 percent reduction in pay.

• The elimination of payment for vacation accruals in excess of 360 hours per calendar year.

• Capping vacation or leave accruals at 2.5 times the employees’ annual accrual rate.

•The elimination of a floating holiday.

• The movement to a two-tier retirement system with employees hired after Jan. 1, 2012. The new formula is retirement at age 60 at 2 percent for non-safety classifications and 3 percent at 55 years of age for the police and fire chiefs.

• The movement to a cafeteria plan for health costs with a minimum employer contribution set at $112.