SPRINGDALE — Employees of Springdale Water Utilities will receive a merit raise July 1.
The Water and Sewer Commission voted Wednesday to give employees who have a favorable job performance review a 2.3 percent raise. Employees who received a poor evaluation would receive a smaller raise, if any at all, according to a memorandum from Rene Langston, executive director of the utility.
“We need to do this,” said Paul Lawrence, commissioner.
The raise is intended to keep the pay of 92 utility employees in line with the cost of living, said Terry Phillips, utility assistant director. The percentage of the pay raise is based on the 2012 April consumer price index compared to April 2011, he said.
The commission traditionally looks at its pay rates in June, Phillips said. In 2011, eligible employees received a 3.2 percent raise.
At A Glance
Pay Raises
Pay raises for Springdale city and Water Utility employees
City Utility
2009 none
2010 4.5 to 5.5 percent 2.2 percent
2011 $600 bonus 3.2 percent
2012 4.5 to 5.5 percent 2.3 percent
Source: City of Springdale and Springdale Water Utilities
Some employees may receive a larger raise as the utility tries to bring its pay levels to midrange for the various job classifications. The utility uses a compensation analysis by the Johanson Group to establish midrange pay.
Pay rates for employees of the utility are separate from pay for city employees. Raises for city employees become effective at the start of the calendar year.
The commission oversees the utility as a separate body from the city. The City Council, which granted the oversight authority, appoints commission members.
Income for the utility comes from water and sewer bills. Beaver Water District is charging the utility more and that increase was passed along to customers. The utility hasn’t recently raised its rates otherwise.
Springdale city employees received a step raise in 2012, said Wyman Morgan, city director of administration and financial affairs. Step raises average between 4.5 and 5.5 percent, he said.
In a step raise system, an employee’s salary is determined by where the position ranks on a pay scale. Incremental increases are called step raises. Those who reached the top level for their position received a $900 bonus, Morgan said.
The utility doesn’t have step raise pay scale.
In 2011, full-time city employees received a $600 bonus and no step increase, Morgan said.