Limiting raises to city employees who make less than $50,000 a year would not save the city enough money to make it worthwhile, one council member says.
Pay raises for all city employees were included in Mayor Ron Littlefield's original budget, which called for a 33 percent property tax increase to cover salary increases and other expenses in the fiscal year that begins July 1.
The City Council has balked at the tax increase. To give some employees raises and to limit the amount of the tax increase, council members Pam Ladd and Russell Gilbert floated the idea of giving pay raises only to those who make less than $50,000 a year.
WHAT'S NEXTThe City Council will meet at 1 p.m. Tuesday to talk about Mayor Ron Littlefield's proposed 2010-11 budget. Mr. Littlefield is expected to deliver an alternate budget.
But that would save about $350,000, records show. Those figures changed her mind, Ms. Ladd said, and now she's leaning toward giving no raises, except to police.
Pay raises desperately are needed for recruitment and morale, said Donna Kelley, the city's personnel director. The last time employees had a raise was almost two years ago, she said.
For weeks, the City Council has discussed Mr. Littlefield's budget, which includes a property tax increase of 64 cents per $100 of assessed value.
His budget also includes a 2 percent cost-of-living raise and a 2 percent raise based upon performance.
Some council members have suggested giving $1-an-hour raises to those who make less than $50,000, giving performance pay only to those who make less than $50,000 or not giving raises at all.
The numbers
There are 278 city employees who make more than $50,000 a year, and they are paid a combined salary of $17.5 million annually, according to city records.
There are 1,669 employees who make less than $50,000 a year, and their combined salaries are $59.6 million.
The average salary of those who make below $50,000 a year is $35,863.82, while the average salary for those making more than $50,000 a year is $59,677 a year, a Chattanooga Times Free Press analysis shows.
Giving raises to those who make less than $50,000 could create a situation in which some of employees could make as much as their supervisors if their pay was bumped and the supervisors' pay was not, Ms. Kelley said.
Employees might make more than their supervisors because many city workers can work overtime while supervisors are on salaries, she said.
"Why would anyone want to be a supervisor?" she asked.
Talking about options
Mr. Gilbert supports a $1-an-hour raise for those making either $40,000 or less annually or $50,000 or less annually. Employees could earn much more with the $1-an-hour raise than a percentage increase, he said.
"I think a dollar an hour is better than a 2 percent or 3 percent raise," he said.
Councilwoman Carol Berz, chairwoman of the Budget, Personnel and Finance Committee, said a cost-of-living increase would be "sticky" because it benefits all employees across the board. Giving performance raises means the workers have a chance at getting a raise.
"One could lift themselves up by their boot straps," she said.
Several council members have started pushing pay raises for police only.
However, Richard Beeland, spokesman for Mayor Ron Littlefield, said limiting raises to a single department could give the perception that only police officers are worthy of raises.
"Those crew guys down in Public Works work just as hard," he said.