Compensation Cost Transparency Transparency Breaking Up Compensation Fog - but Why Hide Pension Costs?

F2 F3 F4 F5 R1 R2 R3 R4 R5 County County of Orange X X X X X X Cities Aliso Viejo X X X X X X X X Anaheim X X X X X X X X Brea X X X X X X X X Buena Park X X X X Costa Mesa X X X X Cypress X X X X X X X X X X Dana Point X X X X X X Fountain Valley X X X X X X X X X X Fullerton X X X X X X X X Garden Grove X X X X X X X X Huntington Beach X X X X X X X X X X Irvine X X X X X X La Habra X X X X X X La Palma X X X X X X X X Laguna Beach X X X X X X X X Laguna Hills X X X X X X X X Laguna Niguel X X X X X X X X X X Laguna Woods X X X X Lake Forest X X X X X X X X Los Alamitos X X X X X X X X X X Mission Viejo X X X X X X X X Newport Beach X X X X X X X X Orange X X X X X X X X Placentia X X X X Rancho Santa Margarita X X X X X X San Clemente X X X X X X San Juan Capistrano X X X X X X Santa Ana X X X X X X X X X X Seal Beach X X X X X X X X Stanton X X X X X X Tustin X X X X X X X X Villa Park X X X X X X X X Westminster X X X X X X X X X X Yorba Linda X X X X TABLE 3 – Special Districts/JPAs/OCERS Responses Required for Findings (F) & Recommendations (R)

(F2) – Content & Clarity Ratings for EXECUTIVE Compensation Cost Content and Clarity for the OC cities elected officials and executives over $100,000 in base salary is improving in this 2nd year of ratings. On the other hand, there is understandably even more potential improvement possible for the Special Districts and joint power authority, which are in their 1st year of ratings. o County: The County of Orange went from a nonexistent Executive Compensation Page in 2011 to one rated excellent in 2012 for Content and Clarity. o Cities: This year in 2012, fourteen of thirty-four cities (41%) were rated excellent for Executive CCT Content and Clarity, while none were rated excellent in 2011. ▪ However, twenty of the thirty-four cities were rated good, average, poor and nonexistent for Executive Compensation Cost Content and Clarity, all of whom could improve to excellent. o Special Districts and Joint Power Authority (JPA): Only three of twenty-three special districts/JPA (13%) were rated excellent for Executive Compensation Cost Content and Clarity. ▪ Nineteen of twenty-three special districts/JPA who received ratings of good, average, poor and nonexistent for Executive Compensation Cost can improve to achieve an excellent rating.26

(F3) - Content & Clarity for EMPLOYEE Compensation Cost Ratings There is the most opportunity for more transparent reporting in the Content and Clarity of Employee Compensation Cost reporting on local government websites. o County: The County of Orange was rated excellent above for their Executive Compensation Page Content and Clarity. ▪ However, the County of Orange was only rated average for Employee Compensation Cost Content and Clarity and could improve to achieve an excellent rating. o Cities: Only five of thirty-four cities (15%) were rated excellent for Employee Compensation Cost Content and Clarity. ▪ Twenty-nine of the thirty-four cities were rated good, average, poor and nonexistent for Employee Compensation Cost Content and Clarity, all of whom could improve to excellent. o Special Districts and Joint Power Authority (JPA) Only four of twenty-three special districts and joint power authority (17%) were rated excellent for Employee Compensation Cost Content and Clarity. ▪ Nineteen of the twenty-three special districts/JPA were rated good, average, poor and nonexistent for Employee Compensation Cost Content and Clarity, all of whom could improve to excellent. One of the 23 special districts/JPAs was rated “Not Applicable” due to their volunteer executive board and no paid executives. (3+19+1=23).

(F4) – Transparency of Employer Pension Contribution Rates Many Orange County local government web sites do not generally post their employer pension annual contribution rates prominently to their web sites as part of their compensation cost disclosure for public disclosure. Specifically, these employer contribution percentages refer to the annual percentages of employee salary that CalPERS (California Public Employees Retirement System) or OCERS (Orange County Employee Retirement System) requires of Orange County local governments to fund their employee guaranteed pension plans. OCERS has the employer pension contribution rates buried in detailed actuarial reports and presentations on the OCERS website or requires member passwords to access these annual governmental funding rates. Thus, there is limited transparency for the public of these governmental pension contribution rates.

(F5) –Inclusion of Overtime and On-Call Pay in Employee Compensation Costs The Orange County “de facto” standard for CCT in the county, cities, districts and JPA now contains all employees, including a page for executives and all elected officials. Two key categories are missing from compensation cost reporting. They are overtime pay and on- call pay. They have become important as the new “de facto” compensation cost reporting standard which now includes all employees. These two cost categories can be significant for public safety employees. However, it is recognized that these cost categories generally do not apply to elected officials. On the other hand, if overtime does not occur for various employee positions, it is important for citizens to be aware of the aware of that in the annual reporting.