Palmetto officials discuss salary study in the wake of raising taxes
PALMETTO -- Less than three weeks into the 2015-16 fiscal year, the city wants to conduct a salary study to ensure its employees are being paid fairly in comparison to other similar sized cities.
Employee salaries made up about 20 percent of the city's overall $25 million budget this year, which included a tax increase as well as employee raises. The 20 percent does not include benefits such as health insurance, which was the driving factor of raising this year's taxes a quarter mill, according to city officials.
The bump in the millage rate will add another $171,000, but it wasn't enough to balance the budget. A homeowner now pays about $38 more a year for every $100,000 of appraised value.
City clerk Jim Freeman said the city has not done a salary study since 2004 and "it's long overdue."
Freeman said the study was necessary to recruit and retain top talent. The two primary areas of study would look at job descriptions and whether city employees are matched to those descriptions and determine whether salaries and benefits are adequate.
Freeman said no one should assume that a salary study would lead to salary increases.
"It may be that we have to make some adjustments and others are fine and if we have to make adjustments, we could phase it in over a couple of years," he said.
The city raised taxes because of higher insurance premiums after what Freeman called a "high claims year." Even after negotiating with a new insurance com
pany costs rose 20 percent. City commissioners pledged to revisit benefits in the future and the study is an opportunity to do just that.
"I would like to see where the city is as far as medical and pensions," said Commissioner Tambra Varnadore. "That is some of our highest cost drivers."
Vice Mayor Brian Williams said it needs to be done, but instructed staff to ensure the commission has a detailed report on how any changes would impact the next budget.
"I don't want to go into a situation where we would have another tax increase," Williams said. "We need to have some kind of plan on how it needs to be approached in the new budget."
The city dedicated $20,000 for the study in this year's budget and Freeman is speaking with vendors on pricing. He said he would have a recommendation and cost estimates in the near future. Mayor Shirley Groover Bryant said it is important not to assume the worst.
"We want to factor everything in on truly what everyone's salary is, and that isn't always just the check that goes into the bank," Bryant said. "We want to be sure we get the right organizations to give us the right recommendation for us. Who we choose and what package we choose will be crucial to us."
Mark Young, urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter @urbanmark2014.w
This story was originally published October 20, 2015 at 12:14 AM with the headline "Palmetto officials discuss salary study in the wake of raising taxes ."