HUNTINGTON BEACH : Pay Figures Defended in Meeting

Of the city’s 1,017 employees, 162 had more than $100,000 each in total compensation last year, and the city paid nearly $5 million in overtime costs, a city report released this week showed.

City Administrator Michael T. Uberuaga, who reported to the City Council on Monday on 1994 employee compensation costs, said nine people earned more than $100,000 in salary alone and that another 19 received more than $100,000 in “taxable earnings,” which included overtime pay, auto allowance, education pay, holiday pay and other items in their contracts.

Total compensation cost, which includes salary, overtime, special pay, all benefit costs, workers’ compensation and medical and retirement benefits, exceeded $100,000 for 162 employees, he said.

Uberuaga said that the salaries and benefits are competitive with those of other Orange County municipalities and that the city’s goal is to attract and retain high-quality employees.

Other officials agreed. “It’s reasonable pay for a reasonable day’s work,” Councilman Dave Garofalo said Tuesday.

Councilman David Sullivan challenged the 1994 salary figures, however, saying they are off by at least 10% because the city pays the employee’s portion of his or her retirement contribution. Huntington Beach is among 22 Orange County cities that pay 100% of employee retirement contributions.

Uberuaga said previous councils approved giving such benefits instead of pay raises. The result, he said, has been cost savings to the city of about $16 million since 1981.

But Sullivan said that “the true salary figures” would factor in an additional 10%.

Because the employee’s retirement contribution is paid by the city, Sullivan said, the added value means that 39 employees earned more than $100,000; 252 earned more than $75,000; 648 employees earned more than $50,000; and 874 employees earned more than $40,000.

Uberuaga also defended the city’s overtime policy, saying it is more cost-effective than hiring additional employees.