Tuesday, June 29, 2010

Budget Breaking Pay Increases Recommended by Council

What was City Council thinking last night, Monday, June 28? A two-percent raise for all non-bargaining personnel? Well, not quite. City Council members were not included. The two-percent increase was an increase from the one-percent increase recommended by the Salary Committee. Councilman Lautenschleger did not feel one-percent was enough for the elected and politically appointed New Philadelphia city officials. Lautenschleger is quoted by the Times Reporter as saying, “I personally believe that’s appropriate at this point.”

Appropriate must have different meanings depending on whether you have a salary protected job, as in government employee, or are unemployed, as in 11% unemployed in Tuscarawas County. The 11% figure does not include those no longer supported by the public dole, folks who the government has just written off. The probability of increased income taxes on the citizen of New Philadelphia to pay for salaries of elected officials and others is rising daily, but is of no concern to city employees. After all, their jobs are secure, their wages paid by those who are lucky enough to have jobs.

So what about city officials salaries? With a two percent increase they are doing pretty well. Take a look at the following figures of yearly earnings, bearing in mind that these are salary figures only and do not include benefits the city pays such as pension contributions, workers compensation, Medicare, health insurance, life insurance, and others which average another 48-percent. An easy rule of thumb to figure it out is add half-again as much to the salary.

Police Chief: $60,432
Fire Chief: $60,432
Service Director: $56,731
Water Superintendent: $54,653
Auditor: $52,977
Law Director: $50,325
Mayor: $48,903

It isn’t like everybody is underpaid. The Police and Fire Department clerk receives in excess of $15,759/year without benefits added.

The cost of wages, without benefits, of the 2% increases amounts to $25,566 for the year should they be passed by Council. But there is more to it than that. The Clerical Union contract, which was approved by Council after being agreed to by Mayor Taylor, allowed only a 1-percent wage increase to the clerks of the city. They originally requested 1.5-percent but the clerks settled for one-percent. I found that interesting at the time as the some members of the Police Department received more than a seven-percent increase and the Fire Department got seven-percent over three years. Go figure.

What’s this going to cost the City in the long run this year alone? In excess of half-a-million dollars when you figure the benefits in, not the $26,000 the auditor reported when asked by council. The difference? Well, it’s evidently hard to know what the real cost of insurance, workers compensation, and similar items paid by the city as these costs are handled by an outside contract and the city pays a monthly bill without really knowing what costs are to individual employees. The problem is that the City just doesn’t have the money to pay these high wages.

There was an interesting editorial in the T-R a short while ago admonishing the Council in these troubled times for even considering pay raises, interesting because last year, the T-R editorial spoke of the necessity of increasing the pay for police and fire departments. Then, okay. Now, no-no. It’s very confusing.

The mystery in this whole thing is that nobody involved seems to know, understand, or care that the United States, and Ohio, and Tuscarawas County, and New Philadelphia, are in serious financial trouble. The economy is not getting better. It is on the verge of collapse. At what point will the Mayor realize that spending money without money coming in will cause deficits, insolvency, and the inability of the city to pay its bills. It’s called cash-flow, Mr. Mayor. You must limit spending to what you can pay for, and we are close to not having the money to pay the bills. Mr. Mayor, you have an opportunity to become a legend in your own time. If this legislation passes City Council, stand up to the responsibility of your office and veto it. Show council and the citizens that you really do have the welfare of New Philadelphia as your prime concern.




Addenda:

Wages for 2010 with 2% Wage Rates, Benefits Not Included:

Police Chief: $60,423
Fire Chief: $60,423
Service Director: $56,731
General Services Supervisor: $55,883
Water Superintendent: $54,653
Park Superintendent: $54,376
Sewer Superintendent: $53,592
Auditor: $52,977
Health Director: $52,871
Assistant Sewer Supervisor: $52,276
Cemetery Supervisor: $51,003
Law Director: $50,325
Prosecutor: $49,836
Environmentalist: $49,094
Mayor: $48,903
Nursing Director: $48,691
Income Tax Administrator: $47,693
Assistant Park Superintendent: $45,339
Assistant Service Director: $42,029
Assistant Prosecutor: $34,731
Assistant Prosecutor: $34,731
Mayor Executive Assistant: $33,118
IT Guy: $32,164
Health Office Secretary: $31,421
Maintenance Director: $31,209
Part Time Nurse: $26,057
Assistance Maintenance Director: $26,053
Assistant Environmentalist: $15,912
Police/Fire Clerk: $15,759
Receptionist: $14,280
Treasurer: $11,924
Safety Director: $9,378

Total Cost for 2010 Wages Without Benefits: $1,303,853.

Add 48% to above wages to include benefits.

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