MONROE — As revenue has fallen in the past couple of years, Monroe city employees watched their salaries grow under current union contracts.
The budget may squeak by this year with a small surplus, but labor costs could push city expenses past tax revenue by $2 million within five years unless something changes.
That has some on the City Council questioning employee pay, the biggest item in the general fund, which includes departments such as the parks and police.
“We’re in the black today, but the model is broken and it’s not going to sustain itself,” City Councilman Tom Williams said.
Williams and others on the council want to try and renegotiate union contracts, which call for regular raises through 2011 for most of the city’s 109 employees.
“The contracts were negotiated with a 2007 economy in mind, and you know what, that economy is not around anymore,” Councilman Tony Balk said.
Mayor Robert Zimmerman said renegotiations are an unnecessary emergency measure, however. Noting that the budget is in the black, he said employee pay can be addressed during regular contract negotiations, slated to begin early next year.
“The floor is not falling out from underneath us at this point,” Zimmerman said.
Under the contract, which took effect in 2008, many city employees get a bump in pay twice a year.
First, they receive a cost-of-living adjustment ranging from 2 percent to 5 percent. This year, the adjustment is 2 percent.
Then, they get automatic pay increases based on seniority. Those “step increases” are given to all union employees during their first five or six years on the job.
“It’s not based on merit, it’s not based on how revenue or budget is doing,” Councilwoman Patsy Cudaback said. “They just automatically get that step increase. I think that needs to be looked at, definitely.”
Renegotiating contracts could be tricky, however. The last time the city did that, employees agreed to take furlough days in exchange for an extension of their contract through 2011, city administrator Gene Brazel said.
“It’s a give-and-take process,” Brazel said. “That’s why it’s called a negotiation. It’s not a take-take.”
Monroe Police detective Spencer Robinson represents police officers and detectives through the Monroe Police Officers Guild. He said the step increases are a smart practice, helping retain experienced employees.
“What they risk in not doing those pay steps is those officers now have experience and can leave for other agencies,” he said.
The salary discussion ultimately could become one more topic to fold into ongoing budget talks.
The budget has been a huge issue for the city in recent years. Twice this year, the council has adjusted the financial plan to pull it out of the red.
City administrators also asked staff in April to voluntarily take furlough days or perform other cost-saving measures. Nearly a third of the staff stepped forward, freeing up $92,000.
Still, the budget has virtually no breathing room. It’s on pace to finish the year about $20,000 in the black, a razor-thin margin for the $10.7 million plan.
“We would like to end with $500,000,” Monroe operations director Brad Feilberg said.
That means the council will be keeping the budget front of mind for months to come.
“We have some tough choices ahead of us,” Williams said.
Andy Rathbun: arathbun@heraldnet.com; 425-339-3455.
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