Council concurs it needs  to do better for employees

By Jack Chavez, Staff Writer

(May 11, 2023) The Town of Berlin presented its FY2024 budget proposal at the mayor and Town Council meeting on Monday, and the hour-long discussion revolved almost entirely around what it does for the town’s employees.

Or as some councilmembers might say, what it doesn’t do.

Finance Director Natalie Saleh kicked off the meeting by introducing the proposal and outlined the general fund balance of $11.49 million.

Though the number will shrink because of unsuccessful applications for grants that had been figured in, capital projects in FY24 on Monday totaled about $3.8 million.

The electric fund was $8.01 million with $1.77 million in capital projects, the water fund $2.53 million with $1.38 million in capital projects, the sewer fund $5.38 million with $2.17 million in capital projects and stormwater $1.27 million with $975,000 in capital projects.

But the numbers that dominated the discussion were the proposed salaries of 35 percent of market value and a 2.25 cost-of-living adjustment (COLA).

The market value of a salary represents what an employee should be paid, based on current market conditions. The value is a range of salaries, with 50 percent of market value being in the middle between the highest and lowest salaries reported for a particular position.

The figures at which the town arrived were based off a pay scale report conducted by Davidsonville-based PayPoint HR.

“Salaries have changed across all departments and funds,” Mayor Zack Tyndall said at the meeting. “This is using the (employee salary) draft report and a market rate of 25 percent of the market rate for all staff and positions, a 2.25-percent adjustment for COLA for all staff as well.”

Tyndall asked the council to provide the town’s human resources department with guidance for the final market rate, which ultimately came out to 35 percent with the intention to achieve 50 percent of the market rate in future fiscal years. That would place town employees squarely in the middle of the range of salaries.

Thirty-five percent, which would be on the low end of the range, is still insufficient for the mayor and council, but the consensus was that 50 percent is simply not feasible in FY24.

“In (all of the) years I’ve been on council, it’s been like throwing darts at the wall to determine how much to increase employee pay,” Councilmember Jay Knerr said. “This is the first time we’ve done a pay study like this and now have a solid path going forward grading employees where they need to be.”

“Thirty-five percent isn’t perfect this year, but it’s a start … it’s where we need to be to start the process and slowly move it forward from year to year.”

Councilmember Dean Burrell, however, was not particularly moved by the 35-percent effort.

“Despite what Jay said earlier about this survey giving us a path forward, I can only sit here and say we have done it again,” Burrell said. “We have done it again this year by considering the needs of our staff again last, last, last, last.”

“I don’t want to see us in this position again, where we’re considering the needs of our staff last, because that’s not the way this thing needs to work. If we don’t have qualified folks (providing our services to residents) where would we be? I’m just let down that this year we can’t do more than this 35 percentile and the 2.25 (COLA adjustment). That’s all I gotta say.”

Councilmember Jack Orris asked if this meant that the town would try to meet the 50-percent benchmark with a 15-percent increase in FY2025, to which Tyndall said staff is eying a step-increase system, and HR Director Kelsey Jensen confirmed they’re forecasting hitting 50 percent over 10 years.

“We’re trying to figure out where the starting scale of that would be,” Tyndall said.

Orris said he wasn’t necessarily disagreeing.

“What I’m saying is, looking at next year, if we’re doing 35 percent, then the lowest (employees on that scale) in my head … will automatically have that 15 (percent)?” he asked.

“It’s not that simplistic,” Tyndall replied.

Town administrator Mary Bohlen said there are other factors such as tenure and that the purpose of the step-and-grade system was to tier brand-new, entry-level employees lower than those who have been with the town for longer.

Councilmember Steve Green called the decision a “discouraging situation.”

“I feel we’re trying to fix something that is many years in the making,” Green said.

“We’re just in a pickle in that we’re trying to move. We have the numbers now. Thirty-five percent, when we started, was not what we imagined the outcome (would be). But every employee is impacted. Those who have been here 10 years or longer and who are adequately paid need to be shown the love.”

Another budget concern for the town was what Worcester County decides in its own budget deliberations regarding the town’s request for $122,000 for a Flower Street roundabout, something that some councilmembers thought the might not go the town’s way.

“At the 11th hour it looks like we should prepare for the worst-case scenario (from the county),” Councilmember Shaneka Nichols said. “This is tough.”