12-08-2014 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________ Page 19 of 26 (22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479, Continued) Printup stated the route proposed by Council Member Levang gives the City some flexibility and stabilization going into the future. Printup indicated for 2015, however, he is in favor of the traditional COLA and following the City Administrator’s recommendation of 2.5 percent. McMillan stated the City needs to be careful with COLA since it is a permanent raise hike. McMillan stated if COLA is not kept in check, it can get high and then cities get in a position where salaries take up a lot of the General Fund and not much money is left over for other items. McMillan stated she understands for a while the wages of union and non-union employees were kept the same. McMillan noted the City has kept the benefits the same both classes of employees, which is a good policy, but that she is a little concerned about the compounding wages. McMillan indicated she likes the hybrid approach proposed by Council Member Levang with the 1 percent pay raise and the lump sum increase, which helps keep the salary increases down. McMillan noted Orono cannot compete with the bigger cities and that they have to stay mindful of that. McMillan stated it is important that Orono’s rates are comparable to other primarily residential cities Orono’s size. McMillan stated in her view 2.5 percent is too big of an increase and that she would like to find some compromise. McMillan stated if the City starts doing 2, 3, or 4 percent increases on a regular basis, in the not-too-distant future the salaries will be pretty high. McMillan stated she would like a more moderate pay raise with a lump sum to further compensate the employees without increasing the pay ranges. McMillan opened the meeting up for public comment. There was no public comment on this item. Bremer stated at this point she trusts the due diligence that has been done by the City Administrator, which was done at the direction of the Council, and that they are talking about a minimal number of employees. Bremer noted they are talking about a difference of $7,400 between 2 percent and 2.5 percent. Bremer stated having been an employment lawyer for 20 years; she has never heard anybody say compounding in relation to a salary. Bremer stated the City does need to carefully look at their budget, but that in her view the City may be pennywise and pound foolish in this instance. Bremer noted the City Council approved on the Consent Agenda tonight five squad cars but yet they are spending tons of time nickeling and diming $7,400, which can send the wrong message. Bremer stated she would encourage the City Council to continue to be diligent in trying to save money in areas where they should, but that this is one of the areas the City Council has already taken the knife to for the last couple of years and that this is not an area where they should continue to do that.