Page 22 The Dispatch/Maryland Coast Dispatch October 11, 2013 City Mulls Funding Options For Employee Salary Hikes By TRAVIS BROWN STAFF WRITER SALISBURY –- A number of costreduction efforts and revenue boosts were examined by the Salisbury City Council this week with the goal of finding a way to fund a city-wide employee pay increase. City administration was able to put together a plan that would cover the pay increases, though members of the council questioned whether some were necessary or possibly even damaging to the relationship between Salisbury and Wicomico County. There may have been some dispute over how pay raises would be financed, but there was unanimous agreement from Mayor Jim Ireton and the council members at Monday’s work session that an increase is a necessity. “We’ve balanced the budget the last six years on the backs of our employees with our furloughs, with frozen positions,” said Ireton. “The amount of money they’ve given up over the last several years, that’s their retirement, that’s all of the things moving forward.” The pay increase is based on the results of a study concluded in August by Evergreen Solutions, LLC, which found that city employees are about 14 percent below market averages in salary and that the current policy is “no longer competitive with its overall ranges and structures.” In response, Evergreen suggested a three-step, nearly $750,000 plan to make Salisbury more competitive in attracting and retaining employees. Using that study as a starting point, Ireton explained that the city’s Human Resources Department further analyzed the numbers and came up with a slightly modified plan that would require a $698,846 compensation increase over a longer time frame from the general fund. Of that, $450,832 would go toward increasing minimum salary and step increases for employees with $248,014 funneled toward making existing salaries more comparable to the public sector market. Only $225,416 would be applied in Fiscal Year 2014 and would be used for the minimum and step portion of the increase. To cover the nearly $700,000 compensation increase for the remainder of this year and next year, $1,016,000 would be generated from the general fund. Besides the $1,016,000 that would come from the general fund, $424,991 would be pulled from expense reductions from the water and sewer fund for a combined $1,440,991, which would fund the pay increase for the remainder of FY13 through FY14. The water and sewer fund would come with an additional compensation increase for employees of $344,089, bringing that total up to $1,042,935. The numbers may be slightly different than what Evergreen pitched, said Ireton, but the effects should be felt by more employees. “The amount that we are recommending today is less than Evergreen’s recommendation and there also is a plan that covers all of our employees,” the mayor said. “We looked at all of our employees and not just the ones that were bench marked by Evergreen.” The new plan would guarantee all employees at least a 2-percent raise, with those in areas like public works, who have gone the longest with the lowest rates, seeing a higher bump. There would also be a reorganization of pay steps to keep the city more competitive in the years to come. Such a pay increase is past due, according to Councilwoman Shanie Shields, who was enthusiastic about moving forward. “I want to dance,” she said. “I’m happy.” Council President Jake Day was also in favor of the pay bump. SEE NEXT PAGE SOLD! 3 “We are a dedicated team of professionals, ready to assist you in your investment. As leaders in resort new construction sales, we offer the very best in service and experience.” Dan Clayland, Project Manager Richie Difillippo Annie Tingle Michelle Pompa Sharon Daugherty Jeff Beres