Pay Raises Coming

2013 City Budget Includes Increases For Police, Firefighters

Thursday, December 6, 2012

— More than 700 city employees will receive a pay raise next year.

Fayetteville’s 2013 budget, which aldermen approved with little fanfare Tuesday, guarantees an average 2 percent pay increase for all salaried and hourly employees. An additional 2 percent is likely.

Mayor Lioneld Jordan’s budget plan anticipates $134.9 million in overall revenue in 2013, an increase of about $13.6 million, or 11.2 percent, compared with 2012.

By the Numbers

General Fund Budget

Fayetteville’s general fund is budgeted to provide the following amounts for departments and divisions.

-Police — $12.3 million

-Fire — $8.8 million

-Finance and Internal Services — $5 million

-Community Planning and Engineering — $3.7 million

-General Government — $3.3 million

-Parks and Recreation — $1.8 million

-Public Library — $1.7 million

Source: City Of Fayetteville

Sales tax proceeds, which make up nearly 40 percent of the budget, are expected to increase by more than $4 million. Water, sewer and solid waste receipts are budgeted to grow by roughly $2.1 million.

The city’s $36.1 million general fund budget, which by and large pays employees’ salaries and benefits, will grow by about $2 million compared with 2012. The bulk of that increase will go toward raises.

Jordan said he will determine if city finances can support a full 4 percent compensation package this spring when the books are closed on 2012.

“At this point in time, with what we’re seeing, we feel we’ll be in a position to do that,” said Paul Becker, Fayetteville finance director. “Sales tax revenue of course is up about 6.5 percent so far this year, so revenues are looking pretty solid at this point in time.”

The compensation package includes all police and fire personnel, who receive fixed increases annually rather than raises based on performance reviews. Kevin Springer, Fayetteville budget director, said Wednesday those increases average about 4 percent

According to Police Chief Greg Tabor, police officers and firefighters did not receive raises in 2010 or 2011 when salaries were also frozen for merit-based employees.

The city’s four full-time elected officials are eligible for raises next year. The City Council on Tuesday decided to unfreeze salaries for the three elected officials who earn more than $80,000 per year — Jordan, City Attorney Kit Williams and District Judge Rudy Moore. Jordan has said he will not accept the pay raise.

Employees at the Public Library can also expect 4 percent raises in 2013, said Stephen Davis, the library’s accounting and human resources manager. Library employees are not directly on the city’s payroll, but the library receives the bulk of its operating revenue from city property taxes and an annual appropriation from the general fund. The city’s transfer to the library is budgeted to grow by about $65,000 — from $1.61 million to $1.67 million — a 4 percent increase.

Ward 1 Alderwoman Brenda Boudreaux, who serves on the library’s Board of Trustees, advocated for the increase in a budget meeting earlier this year.

“I thought it was important to fund them at a level that they need so they can continue to provide the current level of service for citizens,” Boudreaux said Wednesday.

Apart from increased personnel costs in 2013, city officials also budgeted for a range of upcoming and ongoing capital improvements.

Aldermen set aside $1.8 million for in-house street paving, $1.5 million for trail construction, $1.2 million for a new billing and payroll system, $426,000 for fire apparatus purchases, $375,000 for library materials purchases and $115,000 for sidewalk improvements.

Jordan has said he plans to use a portion of the money city officials expect to receive from a new half-cent statewide sales tax on additional sidewalk construction.

The 2013 budget is the first time the mayor has put forward a plan that doesn’t dip into the general fund reserve to balance a gap between revenue and expenses since 2007. Becker said he expects to end the year with more than $12 million in the general fund reserve. That’s more than double the $5.7 million city officials are required to keep on hand as 60 days worth of operating expenses.

In the course of budget talks, Ward 2 Alderman Matthew Petty has said he wants council members to brainstorm possible uses for those reserves next year and to talk about filling some of the 26 full-time positions that have been held open since 2009.