City workers may get an across-the-board raise this year so the Emporia City Commission can have more time to discuss a merit pay system.
Commissioners began talking a year ago about going to merit pay, with raises based on a revised employee evaluation system rather than longevity. A new evaluation form is now in use, but there still hasn’t been a decision made on how raises should work.
On top of that, health-insurance costs for the city went up by 60 percent, Administrative Services Director Larry Bucklinger said at Wednesday’s city commission meeting. That was the city’s worst year ever, he said, and that, in turn, has meant increased premiums for employees.
City Commissioner Bobbie Agler noted that the city had talked about going to a self-insured plan last year, but that no information was presented on it. Bucklinger said he had surveyed other plans but had not taken any bids.
“What I am hearing is we’re not anywhere on either one,” Agler said, referring to the raises and the insurance. “And meanwhile our employees are left hanging.”
Under the merit plan discussed by the city last year, employees could get up to a 3 percent raise for merit. The equivalent of a 1.75 percent raise was budgeted, since not every employee would get the maximum and some raises might be given in a different calendar year. But no final policy was ever laid out for commissioners to say yes or no to.
The result, Commissioner Tom Myers said, is that employees have been left in limbo.
“I think it’s a real morale issue,” he said.
Commissioner Julie Johnson was the first to suggest literally buying some time.
“How would it be if, for this allocation, we did an across-the-board raise for all employees?” Commissioner Julie Johnson suggested. “That would give us a year to figure out the evaluations and what the procedure is going to be. If we did that, it would kind of release the morale issue as far as this budget year is concerned.”
Commissioner Ray Toso quickly agreed. He said that over the last five years, city workers have averaged a pay raise of less than 1 percent a year, including one 18-month period when no raises were given at all.
Mayor Jim Kessler said the workers deserved some recognition for keeping the city running on a fairly tight budget.
“We’re a pretty lean machine,” Kessler said. “I think our workers should be commended for that.”
“They should be compensated as well as commended,” Toso corrected.
Tobacco toughening
Local tobacco dealers would have to shell out $125 for a local license under a city ordinance proposed by Emporians for Drug Awareness.
The fees would raise about $5,000, which could be used to offset the cost of twice-a-year compliance checks, said Dawn Nail of the drug awareness group. In addition, clerks could be fined up to $1,000 for selling tobacco to a minor.
Commissioner Tom Myers said he wanted to know whether the owner could be fined as well.
“It may get their attention,” he said. “What do I care if my 19-year-old clerk has a $1,000 fine? I’m going to fire him anyway, it’s no skin off my nose.”
Tobacco sellers currently pay $25 every other year for a state license.
Last year, a small group of undercover teens working with a state-sponsored “Reward and Reminder” program found that 82.6 percent of Emporia’s tobacco sellers checked IDs first. The year before, 50 percent of the stores had sold to minors.
The great GASB
Commissioners have to decide whether to comply with GASB-45, which requires cities to set aside money to pay the health benefits of retired employees.
The GASB (pronounced GAZZ-bee) standard is a state requirement, but cities can choose to opt out. Doing so, however, could hurt the city’s bond rating and would trigger comments on its annual audit. The city has consistently won awards for excellence in its financial reporting from the Government Finance Officers Association.
Should the city comply with the standard, it would have three options. It could set aside no funds, which would add the amount to its debt load. It could pay for the benefits through bonds. Or it could agree to pay a certain amount each year through a funding schedule.
The money raised from the last two options would go into a trust fund that could only be used for retiree health benefits.
Bucklinger estimated the total impact for Emporia could be $8 to $10 million. If the commission decides to comply with the standard, it will need to hire an actuary to pin down the exact cost, Bucklinger said.