When time comes to talk dollars and sense down at Fayetteville City Hall, union rep-turned-Mayor Lioneld Jordan embraces his selfmade persona of a “man of the people.” The ones he works with. City employees.
Jordan is loyal to a fault to municipal employees, many of whom worked hard to keep his administration in offce in last year’s election.
In a recent City Council meeting, it appears payback time has come. Sparked by an alderman’s request for a review of the city’s growing $12.8 million reserve fund, Jordan oft ered hispriority: He would like to give city employees a 3.5 to 4 percent raise every year for the next three years.
What does giving raises have to do with a reserve fund, or what some might call the city’s savings? Conventional wisdom suggests it’s not prudent to pay for ongoing expenses out of reserve, but rather use them for one-time expenditures. Relying on reserves for the added forever expense of employee raises has been roundly criticized in the past, most notably by a guy who ran against an incumbent back in 2008.
What was his name? It’s on the tip of our … oh, yeah, Lioneld Jordan.
The city’s finance director, Paul Becker, presented financial projections for the Jordan pay plan. If the city’s sales tax, the primary source of money for the general fund, grows at a conservative rate of 2 percent each year, the mayor’s salary plan would commit the city to spending $5.2 million more than the city expects to bring in.
It’s likely sales tax growth would exceed 2 percent, but it’s a gamble to suggest it would reach levels high enough to cover Jordan’s excessive plan. One might also factor in economic conditions and how they have kept many businesses from giving raises at all, much less anything like 10.5 to 12 percent over three years Jordan so generously wants to provide.
Cities need to invest in employees, and aldermen are prone to agree with a mayor who wants to reward employees with raises. But as they move forward with discussion of using reserves, it will be healthy to reflect on the economic realities of the people paying those taxes.
The city undoubtedly has other issues, several raised by aldermen at Tuesday’s meeting as possible uses for reserves. Extending Van Asche Drive to the west into land that could become home to tax-generating businesses was Alderman Justin Tennant’s concern. Jordan liked that idea, too. Rhonda Adams inquired about the future of the regional park in south Fayetteville, a promising project the city has allowed to sit dormant for years. Jordan’s been supportive of work there, too.
Jordan’s chief of staft, Don Marr, played the role of wet blanket. “It’s one of those things where you get criticized when you’re not doing sexy, fun things. But the reality of it is, we’re here to do basic things: Flush toilets; pick up trash; keep people safe; mow the roads; fi x potholes.”
Well, yes, but not just those things, at least not in a vibrant city. Some cities make great strides in expanding economic and quality of life projects for their residents. Rogers comes to mind.
Aldermen clearly have some prioritizing to do later this year. We’re hopeful they will pursue a more reasonable compensation package, supported by the annual budget, and crucial money projects from reserves.
Opinion, Pages 5 on 06/14/2013