LR manager: Can't support bonus, raises

Though revenue up, budget for year shaky, Moore says

Little Rock City Manager Bruce Moore is shown in this January file photo.
Little Rock City Manager Bruce Moore is shown in this January file photo.

Little Rock City Manager Bruce Moore is not proposing midyear raises or bonuses for city employees, he told the city board in a memo Friday.

When a shortage of funds prevented overall raises from being included in the 2015 budget last year, the Little Rock Board of Directors voted to give employees one-time bonuses based on their pay scale. The board also instructed Moore to review revenue midyear to determine whether the city could make up for the lack of a raise in January by giving another bonus or even retroactively raising salaries if revenue was up.

While total revenue is $1.15 million ahead of forecast due to increased sales tax revenue and state pension turnback funds, Moore said other areas are below budget and prevent him from being able to recommend a raise.

"This decision is not an easy one, and I have tried to wait as long as possible to determine if there were viable options for consideration," Moore wrote.

The board is expected to discuss the recommendation at its 6 p.m. meeting today in the second-floor boardroom at City Hall, 500 W. Markham St.

Moore told the board that a 1 percent raise would permanently add nearly $1.3 million to the city's budget. He doesn't think that is wise when heavy rain during the first half of the year negatively affected zoo, golf and park revenue -- which is estimated to collectively come in $700,000 below budget.

Additionally, some unexpected expenditures have affected the general fund budget.

An obligation associated with tower lease payments resulted in the city owing Deltic Timber $166,104. And at the recommendation of the Police Department, the board voted earlier this year to pay $250,000 for police riot gear -- something not anticipated during budget planning.

While sales tax revenue is up compared with amounts collected last year, it hasn't been consistent month-to-month.

"The continued volatility in sales tax receipts, with negative variances in two months and favorable variances in three of the last five months, make forecasting very difficult," Moore wrote. "Staff recommends a conservative forecast for sales tax revenues growth until consistent trends are demonstrated."

Other decisions that will affect the budget include issuing a short-term finance note to open and staff the Southwest Fire Station next year and construction of the West Central Community Center, which is also expected to open in 2016.

Richard Morehead, president of the local chapter of the International Association of Fire Fighters, said the union objects to Moore's proposal.

"We feel like our members -- and also police officers -- need to be a priority. The [city] manager is listing other expenditures above the employees [who] we feel like should be a priority over those other expenditures he's talking about," Morehead said.

The firefighter group has been watching the city's finances closely, Morehead said, and believes there is room for 2 percent raises that would not be retroactive but only cover the second half of the year. The group believes there is an upward trend in tax revenue, he said.

Representatives of the police union and nonuniformed employee union did not return messages seeking comment Monday.

City employees haven't been without pay increases in recent years, Moore pointed out in his memo.

In addition to any step increases relevant to their years of service, nonunion employees received 3.88 percent raises in 2011, while union and uniformed employees received 4 percent raises.

In 2012 and 2013, all employees got 3 percent raises.

In 2014, union and uniformed employees were given 2.5 percent raises and nonunion employees received 1.5 percent increases.

In January, employees who made $40,000 or less got a $1,000 bonus. Employees who made between $40,001 and $60,000 got $750, and employees making more than $60,000 received a $500 bonus. This excluded the city manager, assistant city manager and department heads, who all make higher salaries.

When the bonuses were voted into the budget in December, all three employee unions objected, saying they favored raises instead. The bonuses were a one-time cost of $1,497,750.

Metro on 08/04/2015

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