HomeMy WebLinkAboutMemoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO
FROM :
Pedro G. Hernandez
City Manager
Mike Boudreau
Director, Management and Budget
DATE
SUBJECT
REFERENCES:
ENCLOSURES:
April 25, 2008
DROP Evaluation
FILE
Based on the response required, below is a summary review of the potential exposure the City of
Miami may realize as a result of expanding the DROP maximum period from 48 months (4 years) to
84 months (7 years).
The additional cost the City may realize based on the current average DROP participation behavior of
1.7 years (based on the 4/24/08 report from Stanley, Holcombe & Associates, Inc.) will have a
minimal impact on the City's general operating budget. If the participation behavior remains the same,
the City would realize opportunity cost during this period by forgoing the decision to hire, equip and
train a new police recruit in lieu of maintaining the services of a veteran police officer.
During the first 1.7 years, the City would incur the following recurring and non -recurring cost. Please
see the following:
Item
Police Recruit
Veteran Police Officer
Current Average Annual Salary. Veteran police officer salary
based on average salary of DROP participants at 2/29/08.
$42,469.02
$79,450.83
Medicare Tax. A majority of the DROP participants at 2/29/08
were hired before 3/31/86 and do not pay medicare tax.
$549,42
$124.30
Average Group Insurance Costs
$5,704.31
$5,704.31
Worker's Compensation. Based on current rate per $100 of
annual salary.
$1,907.08
$3,498.58
Retirement Contribution @ 39.83% of covered payroll.
$16,953.15
$0
Life Insurance
$179.92
$179.92
Average Allowances/Pays
$1,992.92
$2,659.93
Pre -Employment Expense
$683.00
$.0
Books and Other Academy Expenses
$4 513.00
$0
State Certification
$100.00
$0
Uniform and Accessories
; $2,419.00`
$0
Vest
$ 700.00
$0
Life Insurance
$179.92
$179.92
- Average Allowances/Pays
$1,992.92
$2,659.93
Total
$76,145.02
$91,617.87
Other Items:
Overtime/Compensatory Time
1 1/2 x $22.52/hour
1 1/2 x $38.20/hour
The estimated difference does not include any replacement supplies or equipment for a veteran police
officer and newly trained police officer, which is currently unknown. Should any of this cost is realized
the difference will be adjusted.
In summary, should the City of Miami decide to extend the drop within a time -frame, which correlates
to the time -frame to recruit and train a police officer, the cost should be relatively minimal on the
City. However, should a veteran police officer decide the stay in the DROP beyond this period the cost
per police officer will be higher for a veteran police officer vs. a newly trained police officer. The
difference in this cost is currently estimated at $15,473 based on the average cost of DROP
participants at 2/29/08 and will fluctuate based on the changes in participants. This difference in cost
is primarily associated with the difference in annual salaries and other pays as a percentage of annual
salaries (i.e. worker's compensation, overtime, compensatory time, medicare tax), which are recurring
and known.
If you have any questions, please advise.
MB/mb
c: Hector Mirabile, Deputy Director Employee Relations