MONROE - Not only did some city employees receive a pay hike averaging 5.45 percent in December, including a $16,600 raise for the city administrator, but it came in conjunction with a 7.35 percent increase in the city tax levy.
It's a combination that never sat well with Monroe Alderman Michael Boyce, and now he's hearing about it from residents.
"There's some outrage out there," said Boyce, who with Alderman Chris Beer voted against the hikes. "Pay increases are always a hot-button issue and taxpayers aren't seeing anything in return.
"I have received a few phone calls on this, but as an alderman in a small town you usually hear from people when they see you out and about at different functions. It does come up. People consider it a matter of principle."
In contrast, Monroe Common Council President Brooke Bauman said: "I haven't heard a peep about it."
Same for Mayor Bill Ross. "I've received zero comments, other than from Mr. Boyce," he said.
Either way, it's a scenario that could have been easily avoided, Boyce said, had only the city stuck with what he thought was a good-faith plan to keep the tax levy flat.
"That's what the Finance and Taxation Committee brought to the table, but I don't think it was ever seriously considered," Boyce said.
The alderman said he supports the pay increases as a means to keep and/or reward good people, but coupling it with more taxes was greedy and unnecessary, considering the increase went toward eliminating a $600,000 fire-truck debt. Boyce feels that maneuver was hardly worth creating ill will among the community.
"We were paying only principal and interest on it, which was in the budget, and it was a seven-year note at only 2-percent interest," he said. "So we received little benefit from this. And we even received some early payment penalties. The whole thing was bad financial practice."
Bauman said the only feedback she's heard on the fire-truck debt elimination has been positive.
"They said it's the best time to do it and that it makes sense," said Bauman, who voted for the pay increases.
Ross noted the employee pay increases were part of a budget approved by the Common Council in November at a meeting that Boyce did not attend. The flat levy was in place at that time, and only the fire truck issue caused the adjustment.
"He should have voiced that opinion (against paying off the debt) before the council voted," Ross said. "All I know is some business owners agreed it was a good idea - they likened it to paying off all of your credit card before you're hit with interest. In this case, about $80,000 in interest."
Meanwhile, Boyce said taxpayer savings presented by the county, the school district and Blackhawk Technical College opened the door for Ross to make the budget moves on the city side with the idea they would sort of even things out.
"I have a suspicion he thought that overall the Monroe resident wouldn't know the difference," Boyce said. "Well, I don't buy that."
The $87,200 increase in city employee pay would have been nearly offset by the city's first-time implementation of a portion of Gov. Scott Walker's 2011 Budget Repair Bill (Act 10) that eliminated negotiation with unions in regard to benefits. As a result, city employees now pay 15 percent of their benefits compared to 12 percent, resulting in city savings of as much as $80,000, Boyce said.
As for City Administrator Phil Rath's dramatic pay raise from $81,340 to $97,900, it has been an easy target for skepticism, Boyce acknowledged. Yet, he said, it was a must and compared its importance to how a good football team spends more for its quarterback.
"We must pay him relative to its peers if we want to keep him. If we don't, he'll always be looking elsewhere," Boyce said. "We want our city administrator to act with confidence. Most administrators stick around five to seven years, and Phil's been here four years. If he leaves, what will the city do? At least this way we'll have his competitive pay level in our budget in case we have to move on. And what caliber of administrator could we get for $82,000?"
Boyce said the city discovered the hard way that it was behind the times as far as compensation for administrators is concerned.
"Not everyone knows that he was our second choice four years ago - we offered $105,000 to the person we wanted, but it was turned down," Boyce said. "At the market rate, both Phil and our assistant city administrator (Martin Shanks) were at the bottom of the pay range in the state."
Boyce thinks residents support this reality, but need something in return.
"Lower taxes and more productivity - that's what they expect," he said. "They'd be shocked to know that the city doesn't even have an automated time-clock system. No one has to punch in. Workers just hand in a piece of paper listing their hours. We need some accountability if we're paying more."
The pay increases were based upon a system implemented by the city three years ago and were awarded based upon either an increase in duties (reclassification), longevity or merit. The concept of market share was added with Rath's situation in mind, Boyce said.
It's a combination that never sat well with Monroe Alderman Michael Boyce, and now he's hearing about it from residents.
"There's some outrage out there," said Boyce, who with Alderman Chris Beer voted against the hikes. "Pay increases are always a hot-button issue and taxpayers aren't seeing anything in return.
"I have received a few phone calls on this, but as an alderman in a small town you usually hear from people when they see you out and about at different functions. It does come up. People consider it a matter of principle."
In contrast, Monroe Common Council President Brooke Bauman said: "I haven't heard a peep about it."
Same for Mayor Bill Ross. "I've received zero comments, other than from Mr. Boyce," he said.
Either way, it's a scenario that could have been easily avoided, Boyce said, had only the city stuck with what he thought was a good-faith plan to keep the tax levy flat.
"That's what the Finance and Taxation Committee brought to the table, but I don't think it was ever seriously considered," Boyce said.
The alderman said he supports the pay increases as a means to keep and/or reward good people, but coupling it with more taxes was greedy and unnecessary, considering the increase went toward eliminating a $600,000 fire-truck debt. Boyce feels that maneuver was hardly worth creating ill will among the community.
"We were paying only principal and interest on it, which was in the budget, and it was a seven-year note at only 2-percent interest," he said. "So we received little benefit from this. And we even received some early payment penalties. The whole thing was bad financial practice."
Bauman said the only feedback she's heard on the fire-truck debt elimination has been positive.
"They said it's the best time to do it and that it makes sense," said Bauman, who voted for the pay increases.
Ross noted the employee pay increases were part of a budget approved by the Common Council in November at a meeting that Boyce did not attend. The flat levy was in place at that time, and only the fire truck issue caused the adjustment.
"He should have voiced that opinion (against paying off the debt) before the council voted," Ross said. "All I know is some business owners agreed it was a good idea - they likened it to paying off all of your credit card before you're hit with interest. In this case, about $80,000 in interest."
Meanwhile, Boyce said taxpayer savings presented by the county, the school district and Blackhawk Technical College opened the door for Ross to make the budget moves on the city side with the idea they would sort of even things out.
"I have a suspicion he thought that overall the Monroe resident wouldn't know the difference," Boyce said. "Well, I don't buy that."
The $87,200 increase in city employee pay would have been nearly offset by the city's first-time implementation of a portion of Gov. Scott Walker's 2011 Budget Repair Bill (Act 10) that eliminated negotiation with unions in regard to benefits. As a result, city employees now pay 15 percent of their benefits compared to 12 percent, resulting in city savings of as much as $80,000, Boyce said.
As for City Administrator Phil Rath's dramatic pay raise from $81,340 to $97,900, it has been an easy target for skepticism, Boyce acknowledged. Yet, he said, it was a must and compared its importance to how a good football team spends more for its quarterback.
"We must pay him relative to its peers if we want to keep him. If we don't, he'll always be looking elsewhere," Boyce said. "We want our city administrator to act with confidence. Most administrators stick around five to seven years, and Phil's been here four years. If he leaves, what will the city do? At least this way we'll have his competitive pay level in our budget in case we have to move on. And what caliber of administrator could we get for $82,000?"
Boyce said the city discovered the hard way that it was behind the times as far as compensation for administrators is concerned.
"Not everyone knows that he was our second choice four years ago - we offered $105,000 to the person we wanted, but it was turned down," Boyce said. "At the market rate, both Phil and our assistant city administrator (Martin Shanks) were at the bottom of the pay range in the state."
Boyce thinks residents support this reality, but need something in return.
"Lower taxes and more productivity - that's what they expect," he said. "They'd be shocked to know that the city doesn't even have an automated time-clock system. No one has to punch in. Workers just hand in a piece of paper listing their hours. We need some accountability if we're paying more."
The pay increases were based upon a system implemented by the city three years ago and were awarded based upon either an increase in duties (reclassification), longevity or merit. The concept of market share was added with Rath's situation in mind, Boyce said.