Raises, free health care inappropriate

By Debra Green
Posted 9/19/09

Editor:

Last fall, even though we were in the midst of the worst recession since the Great Depression, many city employees packed the Council Chamber demanding the Council approve not only a 4 percent pay raise, but also up to a 50 percent merit …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Local reporters keeping you informed across the Alabama Gulf Coast.

You can cancel anytime.
 

Please log in to continue

Log in

Raises, free health care inappropriate

Posted

Editor:

Last fall, even though we were in the midst of the worst recession since the Great Depression, many city employees packed the Council Chamber demanding the Council approve not only a 4 percent pay raise, but also up to a 50 percent merit pay increase for a select few. The intimidation tactics were successful, as the Council capitulated. In his upcoming budget proposal, Mayor Tim Kant is again recommending these raises.

It is ultimately the council’s responsibility to adopt the final budget. Considering the economy, and upon receiving comments from each council member, I do not believe they will again succumb.

No one can dispute the fact that Fairhope, for the most part, has an exceptional city labor force. However, as one of the worst recessions in U.S. history continues, at a time when nearly every municipality in the nation is cutting staff, reducing work hours and freezing wages, it is absurd to consider pay raises and new hires. Because the council continues to make every effort to keep the city workforce off the unemployment rolls, I believe the majority of our municipal employees are grateful there have been no layoffs and will not repeat any such display siilar to that of last year.  

The new council has also managed to continue the costly policy of providing free health care benefits to employees and their families, albeit many in our area and all across the country have lost not only their health care benefits, but their jobs and homes, as well.

Out of five comparable Alabama municipalities, only one, Orange Beach, provides single, non-married employees with free health care benefits. None of the five, with the exception of Fairhope, extends benefits, at no cost, to family members. The policy of gratis benefits to employees and their families must be eliminated. I do not know if council members or the mayor are included in this package, but everyone covered should be mandated to contribute to this $1.35 million, at minimum, annual extravagance.

In addition, earlier this year we were assured the city was in fact, facing a true financial crisis. Even though many residents offered sound cost-saving mechanisms, we were told it was imperative a 2 percent sales tax be imposed immediately. Simply put, the increase in revenue was to ensure Fairhope meet current fiscal year financial obligations and allow more funds to remain within the utilities in order to update and improve the archaic and crumbling infrastructure.

Concurrently, the city also substantially raised sewer and water rates. It is somewhat of a coincidence the second scheduled increase will be implemented at the same time the proposed pay raises are to be considered. Unfortunately, it would appear the revenue increases in effect provided the mayor with the latitude to spend more money.

What is even more astounding, we have found, through the financial reports as presented during the recent City Council meetings, even before any sales tax revenue has been dumped in the coffers, the city is magically within the budget projections after all, but the onerous taxes and rate hikes continue nonetheless.

The adoption of the final budget will include findings as determined by the city Financial Advisory Committee.

The formation of the FAC is unprecedented and will provide more insight into our true financial picture.

However, should the bottom line indicate excess funds actually exist that can be applied toward cost-of-living and merit raises, or utilized for any unnecessary expense including funding the current employee benefit program, the 2 percent sales tax should be rescinded, immediately, and all funds collected thus far be placed solely in the reserve fund.

Employment by or through any government entity does not justify entitlements such as automatic pay increases or free benefits funded by tax dollars.

Small business owners should have the means to provide our own outstanding employees with similar benefits; however, we are not privy to public funds towards a level playing field. We are taxed to death to support these outrageous government entitlements and other programs.

At a time when nearly every Fairhope household and business has taken all measures possible to remain within their budgets, it is unconscionable for the mayor to even consider these ludicrous salary proposals or for the council to continue the elaborate employee benefit packages.

Furthermore, it is a particular insult to small businesses.

Private sector entities and their owners have made tremendous personal sacrifices in order to avoid layoffs, let alone provide free health care and cost-of-living increases to their own exemplary employees.

Debra Green

Fairhope