MOUNT VERNON — Council members voted no on a proposed compensation model for non-bargaining unit city employees after hearing alternative numbers presented by Auditor Terry Scott.
Ordinance 2021-40 established pay grades for the non-bargaining employees and also set compensation rates. The legislation was based on recommendations from an assessment Clemens-Nelson and Associates completed earlier this year.
Council member Samantha Scoles, chair of the Employee and Community Relations Committee, requested the compensation evaluation, which cost $11,800.
Instead, council is considering Scott’s numbers.
At its Nov. 8 meeting, council postponed the ordinance’s third reading to Dec. 13 to allow Scott time to calculate three-year projected compensation numbers based on percentages vs. using Clemens-Nelson’s figures. The city historically calculates raises based on percentage.
Last night, Scott noted his crystal ball did not go out three years, but he did have numbers for 2022 and 2023.
Scott said a projected 2.5% raise in 2022 for hourly employees would cost the general fund about an additional $300,000, the police fund about $5,000, and the fire fund about $2,500.
With a 3% raise in 2023, the numbers are $300,000 for the general fund, $8,000 for the police fund, and $4,00 for fire.
For salaried employees, the same 2.5% and 3% raises would cost the city an additional $313,000 in 2022 and $356,000 in 2023.
Scott noted the projections do not include pension, longevity pay, and other benefits; they are merely base compensation. Additionally, he noted that some positions are vacant, but he included them in the calculations because the city plans to eventually fill those vacancies.
Annual costs will vary based on when and at what rate the city fills those positions.
Scott believes the city can support the additional compensation cost. He anticipates the 2021 rise in income tax receipts to continue in 2022. Business tax revenue also increased in 2021, which he said means that businesses are making enough profit to pay taxes.
“The general fund is doing very well in regard to operations,” he told council. “We are about $150,000 away from reaching our estimate.”
Estimated revenue for 2021 is between $500,000 to $600,000 a month.
“We could see about $700,000 come in in December,” Scott said. “That will exceed our estimated revenue.
“We have to have a workforce to keep the city operating, and that will take some dollars,” he said.
Because hourly employees received no pay increase in 2021, council gave a first reading on Monday to legislation authorizing a one-time payment of $500 to the following non-bargaining employees:
•Office of the Mayor: Administrative Assistant/Clerk of Council (1)
•Office of Safety-Service: Administrative Assistant /Assistant Clerk of Council (1)
•Office of City Auditor: Deputy Auditor and Assistant Deputy Auditor (3)
•Office of City Income Tax: Income Tax Assistants (2)
•Police Department: Executive Secretaries (2)
•Fire Department: Executive Secretary (1)
•Office of Law Director: Legal Assistants (3)
