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What part does payroll play in the budget? |
By Amanda
Newman, Newberg Graphic intern
E-mail Amanda at anewman@eaglenewspapers.com |
When the costs of
housing, gasoline, college tuition and apples increase, so do the
costs of keeping the city of Newberg staffed. In fact, to some
extent, the increases correspond.
As the city prepares to enter a new fiscal year July 1, budget
changes have become a main focus. One area of increase in the
2007-2008 budget, is the compensation packages of city employees.
Newberg’s highest-paid employees, City Manager Jim Bennett and City
Attorney Terry Mahr, will see an increase from $109,955 in annual
wages to $112,705, according to Finance Director Elizabeth Comfort.
Both Bennett and Mahr earned $104,659 under the 2005-2006 budget,
reflecting a 7.7 percent increase over the two-year period.
Information Technology Director Dave Brooks will experience the
largest raise under the new budget, from $77,976 to $86,760 — an
11.3 percent increase in a year. Public Works Director Dan Danicic’s
salary will increase from $89,244 to $91,488, and Comfort’s will
increase from $81,984 to $84,034.
Library Director Leah Griffith and Planning/Building Director
Barton Brierly will receive salary increases from $76,776 to
$78,696. Fire Chief Al Blodgett and Police Chief Brian Casey, who
took over their respective positions within the last fiscal year,
will both earn $87,864 in annual wages under the proposed budget.
“Good wages are very important when you’re looking for
replacements,” Blodgett said. “If you go to the outside (of the
salary range), we would not get the employees we want — we would get
some good candidates, but not the ones we want.”
The average Newberg police officer has seven years of experience
and currently earns $54,273 in annual wages. The average Newberg
firefighter has six years of experience and earns $52,937. Both
positions are subject to annual evaluations on their “anniversary
date.” Based on the evaluations, employees may advance to the next
of six salary range steps, with each step representing a 5 percent
salary increase, Comfort said.
“I’m in favor of these (salary) increases,” said City Councilor Bob
Larson. “I think we have two of the finest employees in the state,
the city manager and the city attorney, and I would hate to think of
having to replace them.”
Annual wage figures do not reflect the cost of benefits, which
include health, vision, dental and life insurance; retirement and
longevity, a “retention incentive” that gives employees $40
additional each month following 10 years of service and $100 per
month following 20 years of service, Comfort said. The police chief
also receives a $450 per month auto allowance.
Salary increases for department heads found in the proposed
2007-2008 budget are based primarily on a cost of living adjustment
(COLA), and do not reflect raises or pay cuts the employees may
receive throughout the year based on performance evaluations by the
city manager, Comfort said.
The 2005-2006 annual budget paid out more than $11.48 million in
employee compensation, equal to 19.3 percent of the total budget of
more than $59.48 million. In the 2006-2007 fiscal year, employee
compensation increased 14.2 percent to reach more than $13.11
million.
Under the proposed 2007-2008 budget, the total compensation for
Newberg’s 161.85 full-time equivalent (FTE) employees would increase
to more than $13.84 million, equal to 19.0 percent of the more than
$73.06 million total budget.
Newberg’s main areas of compensation are the public works
department, with 43.25 FTE; police department, with 32.25 FTE; and
fire department, with 25.01 FTE. Other departments include the
planning and building inspection department (17.5 FTE), the library
(13.14 FTE), and the communications department (9.95 FTE).
Newberg budget for employee pay isn’t the only one on the rise —
the comparatively-sized city of Forest Grove has also experienced
increases over the past few years.
Newberg’s population is estimated at 20,570, according to the
Population Resource Center’s 2006 Oregon Population Report. The
report estimated the population of Forest Grove at 20,380, a
difference of 190 individuals.
According to the city of Forest Grove’s Proposed 2007-2008 Budget,
City Manager Michael Sykes will earn $114,924, representing a 7.0
percent increase from the current budget.
Forest Grove’s Administrative Services/Support Services Director
Paul Downey will earn $93,972 in 2007-2008, a $2,376 increase from
the current budget. The position is the equivalent of Newberg’s
finance director.
Forest Grove’s police and fire chiefs are on the same pay schedule
as Downey, and will earn $93,972 under next year’s proposed budget.
“In comparison to other similar departments, I am not at the top,”
Blodgett said, adding that thinks he is worth his salary.
According to Downey, the average Forest Grove police officer
currently earns $55,536, while the average firefighter earns
$57,264. Most of the city’s police officers and firefighters are at
the sixth and final step of the pay scale, similar to Newberg’s.
Woodburn, with an estimated population of 22,615, is slightly
larger than Newberg.
Woodburn’s city administrator, the equivalent of Newberg’s city
manager, earns $115,716; the police chief earns $103,272 in annual
wages; the Public Works Director earns $109,764 and the community
development director, the equivalent of Newberg’s planning/building
director, earns $84,996 — all higher than Newberg’s corresponding
salaries.
However, Woodburn’s city attorney earns $100,764; the library
director earns $72,180; and Finance Director Ben Gillespie earns
$74,172 — all lower than their Newberg counterparts.
The average Woodburn police officer earns $51,552 and is at the
fifth and final step of the pay scale.
Employees of the Newberg police, fire and communications (dispatch)
departments, almost 42 percent of all city employees, are unionized,
with salary increases based on a collective bargaining process,
Bennett said.
He explained that the bargaining process takes into account
inflation rates and comparable salaries in surrounding areas.
Salary increases for the city’s remaining 94.64 full-time employees
are decided by the city. Although comparative market salary surveys
are taken into consideration, “generally, when you look at
non-unionized employees, you’re seeing an increase based on cost of
living inflation,” Bennett explained.
Bennett said that this year’s COLA for nonunion employees was
around 2 percent. The union adjustment was higher.
“Unionized employees have someone arguing for them,” Bennett said.
“The salaries of union employees advance a lot faster than
non-represented employees.”
City Councilor Roger Currier had something to say about the COLA
increases. “If you take 2.5 percent of a $30,000 employee, it’s a
lot different than taking 2.5 percent of a $100,000 employee,” he
said. “It’s just increasing the gap.”
The city manager and city attorney, both under the jurisdiction of
the city council, undergo yearly performance evaluations
administered by the council. The evaluations will be coming up
shortly for both, and could affect their 2007-2008 salaries.
“It’s completely up to (the council) if there is an increase (in
Bennett’s and Mahr’s salaries) and what that increase is,” Comfort
said. “The council can do what they want.”
In addition to salary costs, the city must also factor the cost of
employee benefits into the budget. Insurance costs increase each
year, Comfort explained, as do costs for the Oregon Public Employees
Retirement System (PERS), which is based on a percentage of each
employee’s salary.
“This year, insurance costs only went up 9-10 percent,” Comfort
said, adding that past increases have been as high as 25 percent.
“I believe the salaries are fair,” Bennett said. “(They are)
comparable — as much as possible — to other jurisdictions in our
area.”
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Published
June 30, 2007, Newberg Graphic
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