More city worker compensation changes may be coming
KONK LIFE STAFF WRITER
Only days after a survey of Key West city employee salaries convinced officials to spend $1.2 million to give raises to 128 workers in the upcoming fiscal year, commissioners agreed to do a new study of job grade classifications that could lead to another significant jump in wages.
The new study will look at job classifications and whether city staffers have the correct title – and accompanying salary – for the level of work they are doing. For example, city commissioners already want to boost John Wilkins from manager of the traffic department to director of that office, a more senior position that would come with a substantial pay increase. The reason, commissioners said, is that Wilkins is overseeing a large department and performing at a more senior management level than his title suggests. Indeed, commissioners agreed to six other, higher job reclassifications at the July 22 budget workshop, not wanting to make those employees wait until a job grade study is completed.
“There are a lot of positions where people are working out of class because the jobs have evolved over time. They’ve had either additional duties put on them or they’ve grown into different responsibilities. So we need to take a look at that,” Interim City Manager Jim Scholl said at the workshop.
It is unclear how many city employees would be affected by an examination of grade classifications. Scholl said his estimate is that at least six other staff members may be paid below their actual service level. Human Resources Director Samantha Farist said it is uncertain at this point whether the new study will have a similar budget-boosting impact as the salary survey, which estimated it will cost $5.6 million to bring up all city workers currently paid less than the market value of their position up to par.
“I’m just going to wait and see where we come out on that,” she said, referring to the grade classification study. “I’m going to let [the consultant] come in and go department by department and tell us what they find.”
Commissioners are slated to vote at their Aug. 5 meeting on a resolution to hire Evergreen Solutions, a Tallahassee-based compensation consultant, to do the classification study. Evergreen is the company that also did the salary survey. Farist said the classification study will cost $43,000 and will be completed by Oct. 20.
Evergreen’s salary study dropped a metaphorical bombshell on commissioners when they were told that two-thirds of the Key West’s 460 workers are significantly underpaid as compared to salary ranges at other public sector entities. During the two-day budget workshop last week, several department heads told commissioners it was becoming increasingly difficult to find and retain good employees because of low city salaries. This heightened awareness of the negative impact on government effectiveness has led to commissioners taking a broader look at employee compensation.
But they were also aware they will have to find a way to pay for any salary increases. That led commissioners to discuss cutting spending in other areas to free up funds for job promotions and salary raises. One area commissioners want to place under scrutiny is the city’s pension and health insurance plans. City Manager Scholl pointed out that any salary increases would lead to higher pension and insurance costs because benefits packages increase along with wage bumps.
“The pensions and the total pay, but primarily pensions in the last decade, is what has caused municipalities to go bankrupt,” he said. “We just need to be very, very cautious as we move forward so we don’t end up being on a slippery slope towards financial insolvency.”
Assistant City Manager Sarah Spurlock had another warning: Cutting benefits to city workers could result in an overall pay package that again is lower than the market.
“We still have to maintain a position in the market,” she said. “If there are ways to reduce the cost, absolutely. Pension costs are astronomical everywhere you go. But it requires a careful study.”
Commissioners Mark Rossi and Billy Wardlow both agreed that one option may be to lower pension payouts for new employee hires, as well as require new workers to pay a higher percentage of their medical benefits. Currently, benefits boost the cost of each employee by approximately 30 percent over their salary. Of that figure, the city pays 24 percent and the employee 6 percent.
“I think for any new employee, the pension and insurance rates will have to change,” Wardlow said.
“I believe everybody should get paid fair,” said Rossi. “But when you’re talking about a $10 an hour employee or a $12 employee that is a fully wrapped employee, that includes their pension. That includes medical. These are things that have to be considered.”
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