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| Hubbard finally catches up employees on salary raises |
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By John Gervais
In her first budget message last Tuesday, Hubbard Finance Officer Apryl Denman presented a short-handed budget committee with a proposed budget anticipating $558,075 in property taxes with an assessed value of $140,318,734.
The budget includes city employee raises suggested by the Local Governmental Personnel Institute (LPGI), an effort advocated by Denman's predecessor a year ago.
Added to the wage adjustments is an annual cost of living increase of 3.7 percent to all employees and step increases for eight of the city's newer employees. Added to that personnel cost increase is an estimated 10 percent rise in the city's full coverage health insurance plan.
As approved by the budget committee, Hubbard employees will receive LPGI salary increases/adjustments that will cost the various personnel accounts, if approved by the council, approximately $70,000 for the 14 city employees. The increase would create a new base of pay for future years for each employee impacted.
Health insurance for an employee ranges from $422.60 a month for a single employee to $1,176.13 for full family coverage. Dental insurance ranges from $43.37 a month for a single employee to $140.94 for full family coverage. The city's insurance provider estimates a cost increase of 10 percent to the above mentioned numbers. That amount is paid by the city, as is the total of the city's state PERS retirement fund.
As for the salary adjustments, only the city council is able to approve the proposed increases, however, they would not have the option if the budget committee had not included enough money in personnel services to allow for the changes.
"This budget does not have a rate increase for sewer or water," said Denman, however in a later part of her budget message, Denman added that the city should seriously consider a sewer rate increase in smaller increments to avoid a lump sum increase at one time.
New construction is also being considered for the city's water system.
Denman stated that there is an ending fund balance of $158,275.
Following the annual budget statement, budget committee Chair Jan LaFollette asked for comments.
"I do not want salary increases of 20 percent and I am not so sure about a cost of living increase of 3.7 percent," said City Councilor Matt Kennedy. "That is a big increase and there are challenges we are facing."
Drawing the most attention was the proposed increase for Police Chief David Dryden. Other than cost of living increases, Dryden has not received a salary increase for 10 years. By contrast, Dryden pointed out that the city of Gervais, with a much smaller police force and 1,000 less people just hired a new chief at $4,476 a month. He also said that the LPGI survey would indicate that the suggested raise for police chief is in about the middle of salaries for chiefs in 10 comparable size cities around Oregon.
Expressing appreciation for the chief's sacrifice in the cities leaner years, LaFollette asked, "Could that not be done over two or three years?" in referring to making up the salary difference.
"Right now we are healthy ... to keep the health of the community, that's a big jump," added Kennedy.
Council President Bruce Warner said, "I feel (the adjustment) is warranted to keep the employees here."
"We decided to bring the salary survey to you ... it is catch up time," said Dryden. "Your long-term employees have been through the scrapes with you (city funding and resource shortages) and we have made sacrifices because we care about the city."
"Lets get them up to speed, it is only competitive," said Warner. He added that he wanted to keep quality employees and avoid a revolving door in city hall with new hires staying less than two years; the city needs to be competitive in salary structure.
Noting the economy, Mayor Tom McCain said, "It is a hard situation and I have had to cut my own salary by 50 percent and lay one person off, but that is not the city employees fault."
Not all of the funds for city employee's wages come from property taxes. Some of the costs are charged to water and sewer funds, where ever appropriate based on work responsibilities.
After lengthy discussion about a variety of street, sewer, water and parks programs, the committee decided it was time for a vote.
The budget was passed to the city council by a 4-1 with Kennedy being the lone opposition and LaFollette abstaining.
Prior to the end of June state deadline, the Hubbard City Council will hold a public hearing on the 2008-09 budget, possibly make some changes if circumstances change and pass it.
As proposed, the 2008-09 budget was, and is balanced.
"I do not want salary increases of 20 percent and I am not so sure about a cost of living increase of 3.7 percent," said City Councilor Matt Kennedy.
"That is a big increase and there are challenges we are facing."
Drawing the most attention was the proposed increase for Police Chief David Dryden.
Other than cost of living increases, Dryden has not received a salary increase for 10 years. By contrast, Dryden pointed out that the city of Gervais, with a much smaller police force and 1,000 less people just hired a new chief at $4,476 a month.
He also said that the LPGI survey would indicate that the suggested raise for police chief is in about the middle of salaries for chiefs in 10 comparable size cities around Oregon.
Expressing appreciation for the chief's sacrifice in the cities leaner years, LaFollette asked, "Could that not be done over two or three years?" in referring to making up the salary difference.
"Right now we are healthy ... to keep the health of the community, that's a big jump," added Kennedy.
Council President Bruce Warner said, "I feel (the adjustment) is warranted to keep the employees here."
"We decided to bring the salary survey to you ... it is catch-up time," said Dryden. "Your long-term employees have been through the scrapes with you (city funding and resource shortages) and we have made sacrifices because we care about the city."
"Let's get them up-to-speed; it is only competitive," said Warner. He added that he wanted to keep quality employees and avoid a revolving door in City Hall with new hires staying less than two years; the city needs to be competitive in salary structure.
Noting the economy, Mayor Tom McCain said, "It is a hard situation and I have had to cut my own salary by 50 percent and lay one person off, but that is not the city employees' fault."
Not all of the funds for city employees' wages come from property taxes. Some of the costs are charged to water and sewer funds, wherever appropriate based on work responsibilities.
After lengthy discussion about a variety of street, sewer, water and parks programs, the committee decided it was time for a vote.
The budget was passed to the city council by a 4-1 with Kennedy being the lone opposition and LaFollette abstaining.
Prior to the end of June state deadline, the Hubbard City Council will hold a public hearing on the 2008-09 budget, possibly make some changes if circumstances change and pass it.
As proposed, the 2008-09 budget was, and is balanced.
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