Mayor Proposes Pay Plan

Jordan Pushes For City Employee Raises

— With the books closed on 2012, Mayor Lioneld Jordan is prepared to increase employees’ salaries above and beyond what City Council members discussed when they approved the city’s 2013 budget.

Aldermen in December approved 2 percent average raises for all salaried and hourly employees as part of the $134.9 million budget.

Jordan said at the time he would wait to see if incoming revenue could support an additional 2 percent increase.

At A Glance

Council Agenda

Fayetteville’s City Council will meet Tuesday. The council meets at 6 p.m. in Room 219 of the City Administration Building, 113 W. Mountain St. The agenda includes:

-A proposal to pay planning commissioners. According to Alan Long, Ward 4 alderman, City Council members voted in December 2009 to stop paying commissioners and have never revisited the issue.

-A $279,000 contract with McClelland Consulting Engineers to design improvement to two bridges on Lafayette and Maple streets.

-Expenditures of about $52,000 in 2013 for watershed and stormwater education.

-Adopting the Wedington Corridor Master Plan.

Source: Staff Report

Paul Becker, city finance director, said Tuesday he was confident better-than-expected revenue — mostly in the form of increased sales taxes — could pay for 4 percent average raises for most employees. According to Becker, the city will close out 2012 with about $1.3 million more than budgeted.

The mayor on Tuesday proposed additional salary increases for employees who were found to earn less than similar positions in peer cities. The recommendation came as a result of a rate study by Management Advisory Group of Woodbridge, Va.

The study, which cost about $20,000, analyzed employee pay at 25 cities, including Little Rock; Bentonville; Springdale; Fort Smith; Norman, Okla.; Columbia, Mo.; and Lawrence, Kan. It concluded Fayetteville workers, at the market midpoint, earn about 1.14 percent less than employees in peer cities.

In order to bring city employees’ pay up to above-average standards, the consultants and Jordan’s administration recommended increasing salaries by 2.14 percent on average.

According to the plan, Fire Department employees would receive 11.4 percent increases. Pay for police personnel would increase by an average of 3.8 percent compared to this year’s budget. Some of the city’s lowest paid employees, including custodians and maintenance workers, would also receive double-digit percentage pay increases.

Becker estimated the overall cost of the salary package at $1.9 million this year and $2.5 million each year after. The increases would be paid for during the next two years using a combination of increased revenue and general fund reserve.

Becker said, if the city’s general fund shows 5 percent year-to-year growth, it will take two years to come up with the money needed to pay for increased salaries without having to dip into reserve. He said sales tax proceeds increased by more than 5 percent compared to the prior year in 2012 and 2011.

If sales taxes came in 5 percent more than budgeted this year, that would generate about $668,000, Becker said. That would still leave a gap of more than $1 million that would have to come out of reserve.

“Normally you don’t advocate for paying with ongoing costs with reserves,” Becker said. “But I believe, at this point, reserves have been built to point where we can (use them).”

General fund reserve has grown to about $13.6 million, more than double the $5.7 million city officials are required to keep on hand for 60 days worth of operating expenses.

Matthew Petty, Ward 2 alderman, said he agreed Fayetteville needs to pay employees at or above what other cities pay. He questioned, however, why officials wouldn’t use some excess money to fill positions held open since 2009.

He mentioned a business license program that doesn’t have a dedicated staff member, and, he said, the city’s Development Services director, who oversees all planning and zoning issues, is also responsible for managing the building safety arm of the Code Compliance Program.

“In my candid conversations with staff, they’re feeling some pressures with that,” Petty said. “I’m a little concerned that we put too much of our eggs in the raises basket and have not left any at all for refilling some of those positions.”

According to Becker, more than 20 positions have gone unfilled the past four years.

Justin Tennant, Ward 3 alderman, acknowledged many workers have had to take on added responsibilities in recent years. But, he said, increased pay would reward employees for their hard work and prevent them from leaving to pursue jobs elsewhere.

“I don’t see us adding a lot of people anytime soon,” Tennant said, “I would rather take care of the staff we have.”

“There’s no greater investment than our people,” said Don Marr, Jordan’s chief of staff.

Council members will consider the compensation package at their Tuesday meeting. If approved, Becker said about 650 employees will see added money as part of their April 5 paychecks.

Upcoming Events