The first reading of an ordinance designed to determine the salaries for members of council passed in Shelby on Monday evening. General discussions centered on a freeze in salaries for members of council, while granting raises for the Mayor, the Director of Law and the Director of Finance and Public Record.
Council moved to a Committee of the Whole session during Monday’s meeting to openly discuss Ordinances 1-2015 and 2-2015, both concerning the salaries of members of council as well as the salaries of elected officials. Councilmember Garland Gates explained both ordinances purport to do the exact same thing, with different figures.
“Since we can only discuss one piece of legislation at a time, we’re using the Committee of the Whole to discuss the two pieces of legislation simultaneously,” Gates explained.
Ordinance 1-2015, sponsored by Councilmembers Nathan Martin and Pat Carlisle, looks to freeze the salaries of members of council but to increase the salaries of the Mayor, the Director of Law and the Director of Finance and Public Record over the next four years. Martin explained under Ordinance 1-2015, the salaries of the elected officials would increase one percent for the first two years and two percent for the second two years.
“There are two positions that require a certain amount of expertise, that being the Director of Law and the Director of Finance and Public Record,” said Martin. “Regardless of the job we do, if we don’t get someone of repute in that position it could mean some serious issues for the city, well above and beyond the cost.”
Martin alluded to the upcoming retirement of Shelby’s current Director of Finance and Public Record Bob Lafferty, noting an increase in salary is necessary to attract qualified candidates to the position. Lafferty himself added it has been difficult advertise the position to qualified candidates knowing they would take a pay decrease up to $15,000.
“Most people who would have adequate financial knowledge to take my position are making in the $65-$70,000 range,” said Lafferty. Currently the salary of the Director of Finance and Public Record is set at $54,239; under Martin’s ordinance the position would earn $57,565 by the year 2019.
As a co-sponsor of Ordinance 1-2015, Carlisle noted that through an ordinance passed in 2013 members of council will be receiving a 2.5 percent raise in 2015.
“For that reason I totally agree with the freezing of council for the next two years,” she said.
Councilmember Gates sponsored Ordinance 2-2015, which also suggests freezing the salaries of members of council but also recommends freezing the salaries of elected officials through the year 2017. Then in 2018 and 2019, the salaries of members of council as well as the Director of Law and the Director of Finance and Public Record would increase by three percent each year. The salary of the Mayor would increase by five percent each year.
Gates explained the five percent increase for the salary of the Mayor is for the purpose of increasing the differential between the salary of the Mayor and the salary of the Director of Finance and Public Record.
“One concern I’ve had, which I’ve had for many years, is that the differential between the salary of the Mayor and the salary of the Director of Finance and Public Record be sufficient enough to reflect the much greater responsibilities that the Mayor has,” said Gates. “At present there is a five percent differential – I think that should be more in the 10 percent range between the two positions. For years 2018 and 2019 we would approach a 9.3 percent differential.”
Another objective of Gates’ Ordinance 2-2015 is for members of council and elected officials to bear some of the burden that the safety services are also feeling thanks to a strained General Fund.
“I said at the last council meeting that when we’re talking about a reduction in staffing at the police department and the fire department, the pain could not be felt only by those two departments. The pain had to be felt at City Hall,” said Gates. “Here’s a way we can share their pain with the proposal I have by freezing all elected officials across the board for 2016 and 2017, and then having increases.”
“I agree with freezing wages for a couple years,” added Councilmember Harold Shasky. “To me it makes sense to freeze wages for a couple years so we can get our General Fund back on track and give that a chance to get more steady than to give everybody raises at this time.”
While Carlisle agreed with the differential of the Mayor’s salary, she did not agree with five and three percent raises suggested by Ordinance 2-2015.
“Those numbers are just too big for me,” she said. “I understand that those are based on the freezing of the Mayor, Director of Law and Director of Finance and Public Record salaries for two years and then playing catch up, but I have no clue what 2018 and 2019 is going to look like. I’m uncomfortable with three and five percent. In Ordinance 1-2015, the reasons those are one and two percent is because those are figures our General Fund could probably handle for the next few years.”
“I’m definitely sympathetic to the notion that we freeze everyone’s wages, my issue is setting the precedent of at times when we’re in a little bit of a bunch we freeze wages,” added Martin. “The end result is not so much a shared pain as much as a frontloaded pain for the first two years, and the second two years catch up rather quickly.
“I want to make sure we’re not just doing something because it makes us all feel wonderful and good inside, we’re actually doing something based off of a long term objective,” Martin continued.
“And that is making sure the value proposition they’re bringing our city is well compensated but at the same time we’re not breaking the bank, and we’re able to provide the adequate services to the city of Shelby as well. There is a balance, and I think it can be struck.”
Ultimately, council unanimously voted to proceed with the first reading of Ordinance 1-2015 with the expectation that the ordinance would be further amended. Gates motioned to postpone his Ordinance 2-2015 indefinitely.
“I’m more than happy to park my ‘vehicle’ on the side of the road and we can do amendments to the first ordinance before the third reading and final passage,” said Gates. “That doesn’t mean I’m conceding my points, but I’ll park my vehicle.”
