Meeting of 1999-5-18 Budget Meeting

Baker said after the budget meeting last week, he prepared a memorandum regarding changes to the preliminary budget. He reviewed that memorandum and his presentation is summarized as follows: Leave the Lakes Division in the Public Works Department and consider moving it to Parks & Recreation next year. Include purchase of backhoe for the Lakes Division. Include purchase of a backhoe for Parks Maintenance and allow Baker to determine if there was a greater need for the new equipment in another division and assign it accordingly and possibly move an older backhoe in its place. Restore $17,000 to Account 104, Solid Waste Disposal, for contract labor. Restore $1,200 to Arts & Humanities 201 Account because that reduction would have jeopardized one of the programs. Add 2 pH monitors in lieu of a palette jack for the Water Treatment Plant budget, with the dollar amount remaining the same. Move the courier position to the Print Shop, combining it with a part time position to make it a full time position, and move the funds in the Print Shop to the City Manager's budget to hire a part time Clerk III. Baker recommended reducing the projected reserve by $18,200, and the reserve will still be larger than it was for this current fiscal year, but that will accommodate these requests.

Baker recommended deferring a decision on the general employee pay adjustments until the consultant's recommendations are received on the classification and pay plan. He asked that a decision be deferred on the cost of pay adjustments for fire and police until contract negotiations are complete. Baker suggested the budget approval process not be tied up with those issues which can be addressed at a future date, and funds are included for general employees and a decision can be made at the appropriate time, but there is not a point in delaying the budget for that item. Baker asked that Council listen to a presentation tonight from a representative of the Employee Advisory Committee.

Baker recommended combining Activities 08, the City Attorney, and 10, the City Prosector, since those funds are interchangeable and all the employees in both activities work for the City Attorney. There is a typographical error in the City Attorney/Prosecutor's budget showing an hourly rate for a temporary employee at $7.70 and the correct rate is $8.08; the proper amount is reflected in the budget totals.

John Thomas, EAC Vice Chairman, and Ransom Crisp, EAC member, gave the presentation. Thomas said the EAC speaks in behalf of the general employees. He asked that consideration be given to providing for two additional hard holidays, those being Veterans' Day and Martin Luther King's Birthday. Thomas pointed out the unique relationship between Lawton and Fort Sill, as well as the number of veterans that are employed by the City, and asked that Veterans' Day be recognized as an additional hard holiday in light of these circumstances.

Thomas said EAC has requested a 10% cost of living increase and that Ransom Crisp would speak further in that regard. He suggested amending the earned sick leave credit, which is currently 3.6923, and recommended rounding it off to an even four hours per pay period. Thomas said they had difficulty finding out why the odd number was in place and that it had been that way since 1973. He recommended the figure be set at four hours per pay period for employees with ten years of service or less, and six hours for those with over ten years of service. Thomas said they were not making any requests with regard to vacation, because it is on a sliding scale now according to years of service.

Shanklin asked if the request was for two additional hard holidays and Thomas said yes. Shanklin asked what is currently provided and response was six hard holidays and five flexible holidays, or a total of 11 days a year. Shanklin asked if the cost to the City to grant such a request would be $50,000 per holiday and Baker said yes. Shanklin said the request would cost an additional $10,000 a year in the budget.

Purcell asked about flexible holidays and Thomas said they can be taken at the employee's request. Purcell asked if that was in addition to the sick leave Thomas had mentioned and response was yes. Purcell said the odd number on sick leave hours per pay period is due to the total number of hours allowed per year divided by 26 pay periods.

Ransom Crisp, Wastewater Treatment Plant employee, EAC Member, said in the past, the general employees had asked for 5% or 6% and settled for 2%, when police and fire had always received a larger percentage. He said the general employees have always done what they have been asked and work as hard as police and fire and should not receive a smaller percentage on cost of living. Crisp said the insurance went up 25% last year, and will go up again this year, so a 2% or 3% cost of living raise would not help a lot. He said the general employees are the heart and soul of the operation, and whether the raise is granted or not, they would have to be here to be able to take care of their families and that they need their jobs. Crisp said in the Army, it is people first, mission always, but you do not have a mission without the people and that was why they were asking for 10% cost of living.

Beller asked when the classification and pay plan study will be finished. Baker said two weeks. Beller said he thought he had received that answer two weeks ago and asked where the study is now. Chuck Bridwell, Human Resources Director, said the proposed point values for all positions were distributed to department directors last Friday and their comments are due by this Friday; the consultant is currently evaluating the salary survey portion and compiling that data, and the report should be ready in about two weeks.

Beller said one of the most important decisions Council will make is what sort of change in pay the general employees will receive, and that he agreed that general employees are the backbone of the City operation. He said Council should approve as much as possible and the pay plan should be expedited to see what can be done.

Shanklin asked if the consultant will come to Lawton. Baker said he has been here and will return to provide a briefing to Council. Baker agreed it is an important decision and said action on the budget does not have to be delayed because of it; any actions can be made retroactive to July 1. Beller said the information should be available well before July 1 and if needed, Council could make a supplemental budget. Baker said the money is in the budget now for general employee pay adjustment, if Council approves, and it is too early to decide because the study is not finished and Council should be able to make a decision before July 1.

Shanklin asked if Baker had spoken with the consultant. Baker said yes, several times. Shanklin asked where the consultant gets the figures to decide who gets the raise and how much it is. Baker said there is a rating system the consultant uses, and he has used it in various other cities, where you rate the position based on different factors and then depending on the number of points the particular position gets, then that is where it would fall in the pay plan. Baker said those have all been done and given to the directors for review, and that will be returned to the consultant.

Purcell asked if employees can carry over the 96 hours a year granted for sick leave. Baker said general employees having over 576 hours of sick leave are paid the excess, and if you take no sick leave all year, that would be 96 hours. Purcell said the City gives 88 hours for holidays, five flex and six hard holidays, or 11 days for 88 hours. Purcell asked what vacation rates are granted. Baker said it is on a sliding scale, depending on years of service, and it starts out with two weeks per year and goes up to four weeks after you have been employed 15 years. Purcell asked if sick leave stays at 96 hours per year regardless of years of service and Baker said it stays the same.

Purcell said he thought there were only ten federal holidays per year and the City has 11, six hard and five soft, so that is one more than the federal holidays. Baker said if someone feels strongly about a certain holiday, such as Veterans' Day, they can take it as a flexible holiday, with the approval of their supervisor.

Purcell said he had no problem with the $18,200 reduction in the reserve and the items mentioned by the City Manager. He asked if the $93,750 discussed at the last meeting would be placed in Council Contingency or if it would go into carry over. Baker said Council could designate either and Purcell asked for Baker's recommendation. Mayor Powell asked what funds Purcell was referring to. Purcell said the $93,750 that was originally in the budget for economic development that Council took out at the last meeting. Mayor Powell asked if it was Council's suggestion to take that money away from the Chamber of Commerce. Purcell said it was to come from the hotel/motel tax as opposed to the general budget, which left $93,750 in the general budget that something has to be done with, so his question was what is staff's recommendation as to placing it in the carry over or in Council Contingency. Baker recommended placing it in Council Contingency, and the original $93,750 would remain in the Mayor's budget. Purcell said it would be designated to come from hotel/motel funding.

Shanklin asked if $40,000 was in the budget for a video camera. Baker said $15,000 is in the budget for audio visual and editing equipment in the City Manager's budget; originally the Parks & Recreation Director requested it but it was moved to the City Manager's budget so it could be used by any department, but it is $15,000. Warren said the software was about $40,000 that he brought up that was not going to be done right now and staff would look at it further.

Baker asked the City Attorney if a motion was needed on the items he had recommended tonight. Vincent said a motion could be made directing the City Manager to include the items in the preliminary budget or it can be done along with approval of the final budget.

Purcell said last year the budget book was never really changed from the preliminary to final budget, although a page was added with the changes that were made. He suggested the changes be made in the final budget book if possible. Steve Livingston, Finance Director, said that can be done if budget considerations are completed in time to allow for that work.

Beller asked if funds were included for 3-4% cost of living for general employees. Baker said there is sufficient funding for 3% included in the 100 accounts for general employees. Shanklin asked if that is 3% cost of living plus 2.5% step in grade for a 5.5% increase. Baker said yes, for those who receive the step in grade. Shanklin asked what was given last year. Baker said the current year was none, and over the last five years, general employees were given 7.5% cost of living increase total and the CPI went up 11.05%, so the difference is 3.55%. Shanklin said Lawton could not really be compared to areas such as Kansas City. Baker said it is the CPI for the Southwest region of the country.

Shanklin said 3% widens the gap between the entry level and higher level positions, and that stipends had been given in the past, as well as trying to give 3% to a certain group and a lesser amount to another group. He said in time, the gap widens. Baker said Council did not have to make that decision tonight, although he could not find additional funding to go above that percentage.

Shanklin said there are employees who cannot afford the family insurance coverage and that he would like to see something done to allow for that coverage. Baker said the City pays insurance 100% for the employees, but not for dependent coverage. Shanklin said he hoped Council would take that into consideration so those employees would have something to fall back on.

Beller asked if items such as insurance are addressed in the pay plan study. Baker said it does not cover benefits, and the purpose of the study was to determine if there was a need for a new pay plan and also to do a salary survey to determine if Lawton is paying appropriately, but it does not get into the fringe benefits, such as the group health insurance.

Warren asked if Council needed to direct the City Manager to move forward with the changes that are included in the memorandum. He said it appeared there was no further discussion until the consultant's recommendation was returned. Mayor Powell suggested any final questions be asked and if there are none, accept the budget with the statements made, subject to changes that can be made in the future as far as pay or anything else. Vincent said a public hearing is required. Mayor Powell agreed.

Purcell said he agreed with Shanklin about the lower grade employees, but that was why he had suggested the salary survey be done because it would produce a pay scale with more equity. He said after everyone is receiving a fair amount of pay for the work they are doing, and next year the cost of living goes up by 3%, we should be able to apply 3% to every pay grade to make up the cost of living. Purcell said the step increase becomes the raise, and the other is cost of living, and it should work because it works everywhere else. Beller said the big guy gets 3% and the little guy gets 3% and there is a big difference in those amounts. Purcell said another study might be needed in 15 years to get it back in line.

Beller said he had a soft spot in his heart for general employees and hoped there was some way to get them something tangible. He asked if an employee can work and receive pay for working on these two days if Council approves them as hard holidays. Baker said not unless they are a shift employee, and there are certain personnel at the plants that cannot observe the holidays so they are paid holiday pay in lieu. Beller said he would rather put something in the pay envelope instead of the vacation and off days, although he highly respected both of the holidays that had been mentioned. Shanklin said something should be done for those who cannot participate in the insurance program. Beller said rather than the two holidays, if the pay were increased, they could participate in the insurance program.

Vincent said the fire contract includes the "me too" clause, so if general employees are given two more hard holidays, it would affect the fire employees also. Shanklin said he thought that had been deleted and Vincent said it was deleted in the police contract, but not in fire. Beller said that is why the general employees need a union, and they should consider that and attempt to receive the benefits the other groups receive. Beller said until the general employees have a union, they would continue to get what was left over, and the general employees deserve as much as the others.

Purcell said he agreed something was needed on salaries and that the survey would likely show that. He said he was less inclined to go along with more days off because the City allows for 96 hours of sick leave each year, 88 hours of holidays, and 80 hours of vacation for brand new employees. Baker said the numbers are correct. Purcell said that comes to 264 hours a year, and at eight hours a day, that is 33 working days gone each year, and when an employee has 15 years of service and gets 160 hours of vacation, that is 43 working days gone each year, which is a very generous amount of days off each year whether it is state, federal or commercial businesses. Purcell said he did not think employees were hurting in terms of days off, but they are hurting in terms of salary, and that he could not support more days off.

Mayor Powell asked if Council would like to provide direction with regard to the additional holidays and the consensus was not to provide additional holidays. Purcell said he would support making those days hard holidays and decreasing the flexible holidays by two, if that would help. Haywood said it he did not agree with the other members concerning observance of Martin Luther King Day. Beller said he would like it observed also but would like to see the pay increase.

MOVED by Warren, SECOND by Williams, to direct the City Manager to come back with the changes he indicated on the memorandum, and anything discussed tonight as consensus, and bring it back as the budget to adopt at the first meeting in June, and tackle the pay plan when the report is received from the consultant.

Shanklin said he would like to make a substitute motion to include the language in Warren's motion, plus the fact that Baker's staff tell us how many young employees in the general employee ranks cannot participate in the family health coverage. Haywood seconded the substitute motion.

Warren asked how you determine whether they cannot, or they do not desire to, or they do not desire to change their spending habits to be able to pay for it. Shanklin said he just wanted to know how many were not participating. Baker said he could provide the requested information to the Council. Shanklin said he did not care if a person making $40,000 a year did not participate and that he was speaking of those in the $18,000 to $22,000 a year salary range. Purcell said he would like to see the information but that he did not feel it had anything to do with passing the budget, and that the pay raise might help in that regard. Shanklin said they may need to put some of the money in the insurance plan instead of in salaries.