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Money unavailable for 4% raises for city employees |
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Wednesday, 23 April 2008 |
Benton aldermen supporting a 4 percent, across-the-board raise for all city employees who already have not received a pay increase left a Personnel Committee meeting disappointed Tuesday night.
Aldermen received a review of city finances by John Walden, the city’s chief financial officer, and learned of additional financial responsibilities facing the city from City Attorney Brent Houston.
The aldermen then concluded that money for the raises simply is not available.
Instead of a 4 percent increase, the decision was made to offer a $1,000 increase to all employees who have not previously been compensated.
The aldermen were dealing with the issue because of recent unauthorized 4 percent raises given to the street department employees by Mayor Rick Hollanda bout two months ago. The increases, which were made retroactive to Jan. 1.
A city ordinance gives the mayor the authority to give only department head raises without City Council sanction.
Last week, Holland met with the Personnel Committee and acknowledged that he did not have the authority to give raises to the street department personnel. At that time, he asked the council to ratify his action.
The other option open to the council would be to discontinue the wage increases from this point forward.
None of the aldermen wanted to rescind the raises. They said they visited with employees of other departments, all of whom did not want any employees to have to give up their additional compensation.
“Our employees are class acts,” Alderman Bill Donnor, chairman of the Personnel Committee, said. “None of them wanted anyone who’s gotten a raise to have to give it up. I applaud them for their attitude.”
The aldermen plan to re-study the city’s financial situation in the fall to see if it’s possible to give additional compensation to the employees that will be receiving the additional $1,000.
Alderman Steve Lee chastised Holland for his action that created the current dilemma for the council, saying the mayor moved from an administrative role to a legislative one.
“Mayor, you need to think before you act,” said Lee, who eventually agreed to ratify the street department raises. You need to remember that what you do affects 27,000 people.”
Holland pointed out that he has previously apologized for his action. “What I did was not legal,” he said.
When asked about the action last week, Holland did not state that he believed what he did was unfair, nor did he do so in the Personnel Committee on Tuesday night.
All of the aldermen present were asked to state their opinions about the situation.
Alderman Brad Moore said, “This is really a tough position. It makes me very uncomfortable. Basically, I feel I’ve been cornered. I wouldn’t be comfortable taking away the increases ... so I vote to ratify.”
Before the meeting, Moore had said he expected to vote for the 4 percent raise for other departments.
Donnor also had believed the 4 percent raise was possible, but said in the meeting that “I don’t feel comfortable .... in view of these numbers.”
Alderman Jerry Ponder said the issue has “put me in the most untenable situation I have faced as a member of this council.”
Ponder had supported raises for all of the other departments. “Equality ... is always a big issue for me,” he said. However, he said, what the council currently is facing is “a matter of economics.”
Alderman David Sparks was the only alderman who voiced a desire to proceed with a 4 percent raise for other employees. “I think we can come up with the money and make it happen,” he said.
Dave Mattingly, who chairs the Citizens Public Safety Committee that is reviewing the city’s public safety department budgets and other matters related to those departments, asked about increased collections in the city’s sales taxes.
Alderman Doug Stracener, who previously reported an increase, acknowledged this occurred in January, but noted that this represents only one month’s collections. This is not long enough to determine if the pattern will continue, he said.
During the discussion of the raises Holland gave to department heads, it was asked what amount each received. Kathy Kirk, human resources director, said they amounted to “about 4 percent” for most employees, but noted that at least one — for Marsha Guffey, director of community development — was slightly higher, making her annual salary $50,000.
In a related matter, Houston advised the aldermen that they should set aside about $150,000 for former union employees who currently do not have medical insurance but previously were covered by the city through a union contract. Two have been identified as currently being without insurance, but the number could be higher, Houston said.
Houston’s advice is related to a recent decision of the 8th Circuit Court of Appeals that has ruled in favor of former employees who sued the city because the 2003 council discontinued their insurance benefits and reduced other benefits.
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