Benton County officials begin budget work

BENTONVILLE -- Benton County officials discussed increasing employee pay across-the-board at a cost of more than $1 million as the budget process began in earnest Thursday.

The Finance Committee met 90 minutes early on Thursday and the justices of the peace then convened in a joint meeting of the Budget and Personnel committees. The two panels heard a presentation by Blair Johanson of the Johanson Group, a Fayetteville management consulting firm that has advised the county on its salary and pay scale for several years.

What’s next

Benton County’s justices of the peace will continue their discussion of employee pay and other personnel issues when the Personnel Committee meets at 6 p.m. Oct. 13 in the Quorum Courtroom at the County Administration Building, 215 E. Central Ave. in Bentonville.

Source: Staff report

According to information presented by Johanson and Barb Ludwig, human resources administrator, 21 positions were identified as being paid at levels lower than market value. Ludwig's position was among those, along with the jail facility maintenance manager; executive assistant-judge; maintenance, service technician, public defender investigator; victim assistance coordinator and others.

The study also indicated the county's pay range is "compressed" with long-time employees not moving up in pay to remain ahead of changes in entry-level pay. The study also indicated pay in both the public and private sectors is increasing and estimated the increase in pay for the market for the next year at 3 percent to 3.5 percent.

The study made four recommendations: adjusting the salaries of employees identified as being paid below the market average at an estimated cost of about $42,000; making a "compression adjustment" to move some employees on the pay range at a cost of about $45,000; increasing employee pay by 4 percent across-the-board at a cost of about $947,000; and limiting increases in the salary range to every two years.

The total cost of the recommendations was put at $1,034,811. Ludwig said that's the estimated cost but doesn't reflect the source of the money. Some of the cost would be borne by "commissioned accounts" such as the Assessors and Collectors offices which have their own sources of revenue. Most of the cost, estimated by Ludwig at about 70 percent, would come from the general fund.

Ludwig reminded justices of the peace the pay ranges and grades are meant to provide a guide to the relative value of a job, not reflect the merits of an individual employee. She said an example could be a truck driver.

"The job ranges match the worth of that position, not the person," she said. "You may have a person who's a very good truck driver, but he's a truck driver. What is that job worth?"

The justices of the peace asked for more information directly comparing Washington and Benton counties, which Johanson said he can provide. They also asked for details showing time in service with the county, not just the time in a pay grade as a way to better judge turnover.

"I see the time in grade but I also want to see years of employment and I want to compare the two," Joel Jones, justice of the peace for District 7, said during the discussion.

The justices of the peace also questioned the proposal for an across-the-board increase instead of some type of merit pay, arguing across-the-board increases reward undeserving employees which in turn hurts employee morale.

"I know it's not a popular thing to say but there are employees who are not performing up to standard," Tom Allen, justice of the peace for District 4 and chairman of the Finance and Budget committees, said. "With across-the-board you're paying a top performer the same as someone who's under-performing. That's a morale-killer."

The justices of the peace also heard a report on the 2014 audit from Brenda Guenther, comptroller. Guenther said state auditors questioned the decision to pay former Sheriff Kelley Cradduck $74,505 as part of Cradduck's resignation. The audit said the decision is questionable based on opinions from the state Attorney General's Office.

The audit report also said the county had "a material weakness" in some internal controls over financial records. Guenther said it isn't related to recent discovery of irregularities in the handling of money in a travel account in the accounting office and a federal investigation underway. She said those problems will almost certainly be addressed in the 2015 audit report, which is being prepared.

Also Thursday, the justices of the peace heard a request from representatives of the Office of Human Concern for $25,000 for the five senior activity and wellness centers the group operates in Benton County. Tim Ensley and Susan Moore told the committee the centers operate on a $1.8 million budget, with about 55 percent coming through the Area Agency on Aging and the rest from grants and fund-raising.

Moore said Carroll County's Quorum Court pays $20,000 annually to help keep one center operating in that county. The request was sent on for discussion as part of the budget process.

NW News on 10/07/2016

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