Budget gives employees 2-percent raises

June 21--Members of the Richmond City Commission argued about funding for employee benefits and economic development in a Tuesday morning work session. But, they were all smiles in a called session Friday afternoon when the 2015-16 budget was adopted on final reading.

The budget, which anticipates a 2-percent rise in revenue, funds a 2-percent cost of living raise for all employees. It also includes money for the city manager and department heads to give merit raises.

However, while the budget gives to employees with one hand, it takes back with another.

Beginning in July, about $9.46 will come out of each employee's bi-weekly paycheck to cover part of their health insurance premium. Their total contributions would total about $56,000, according to figures presented during budget discussions.

The city's health insurance cost is going up by 19.27 percent for 2015-16. In the past year, employee health care costs exceeded premiums by 9.41 percent, interim City Manager Richard Thomas stated in his budget message.

The budget, which anticipates a balance of more than $9.53 million at year's end, also puts 25 percent of the city's income into its reserve fund when the state requires only 20 percent.

Instead of putting so much into the reserve, the city could easily cover all of the higher health insurance cost without passing any of it to employees, Commissioner Jason Morgan said after the Tuesday work session.

Morale of city employees is low, Morgan added. A 2-percent pay raise helps, but sticking them with part of their health insurance premium, even if relatively small, should have been avoided, he added.

When Morgan offered a motion to amend the budget Tuesday and got a second from Commissioner Jim Newby, Mayor Jim Barnes said he would not accept it accept it because the meeting was a work session. However, Morgan maintained that motions could be voted on during any regularly scheduled meeting.

Later, when Morgan called for a parliamentary ruling on his motion, the mayor said motions needed to be submitted in writing ahead of meetings so a former order could be prepared.

The mayor also said the employee insurance plan for the coming year was already in place and changing it at that point would be disruptive.

"You need to know all the details before you make a motion," the mayor told Morgan.

Morgan also said Tuesday he would like to increase the $30,000 budgeted to promote the downtown economy and a similar amount to promote economic development elsewhere in the city, with a comprehensive plan and business organizations for both.

The mayor said the city already has an economic development arm, the Richmond Industrial Development Corp., but Morgan countered that it is focused primarily on industry. If that arm of the city also is responsible for overall economic development, its name and focus should be changed, he said.

Both Barnes and Commissioner Donna Baird said amending the budget in late June would require called meetings if the state requirement of adopting a budget by June 30 was to be met.

They mayor also said the budget could be amended at anytime after its adoption and money could be taken from the reserve. Ordinances, which must have two readings, are required to adopt or amend a budget.

Morgan said his first look at the budget came in a 45-minute session, and next year he would like to be more involved with its preparation.

"I had 45 minutes to review a $24,000 budget," he said. "I didn't get to put my hopes, wants, wishes and dreams into the budget," he said. "And part of my hopes wants wishes and dreams is for a coordinated plan for downtown."

Thomas said the commissioners were asked during the budget review session if they wanted another special meeting to discuss it, and no one, including Morgan, said yes.

Asked by Morgan if he participated in any budget-preparation sessions with Thomas and Finance Director Sharon Cain, the mayor he "sat in on a few."

"Well, I wasn't invited," said Morgan, who added that the mayor "is just another commissioner with a title."

Barnes disputed that, saying, "No. I'm the mayor, and I wish you would address me that way."

Even if he attended some meetings with Thomas and Cains, "Jim Barnes did not make the budget, Mr. Morgan," the mayor said.

Before casting his vote in favor of the budget Friday afternoon, however, Morgan expressed appreciation to Thomas and Finance Director Sharon Cain for their efforts in preparing the budget. For Thomas to take office at mid-year and immediately have to start work on the financial plan had to be "extremely difficult," said Morgan, who trained as an accountant.

He referred only indirectly to his "issues with the budget" but said paying down debt and appropriating $250,000 for sidewalks were bright spots.

"With the commissioners working together, putting aside differences and showing bold leadership, we can resolve the issues going forward," Morgan said.

Next to vote was Jim Newby, who smiled as he voted yes, saying he could not add anything to Morgan's statement. Commissioners Donna Baird and Robert Blythe both offered simple yes votes. However, in a fashion similar to voting panels of television talent shows, the room grew silent as Blythe paused for a few seconds. He then smiled and said yes, drawing laughs from the sparse audience and his fellow commissioners. Barnes concluded the voting, saying he would echo Newby's comment.

In other action, the commission accepted the resignation of George Dillon, who was hired in mid-May as codes enforcement director.

At the 30-minute meeting's conclusions, the commission went into a 15-minute executive session to discuss personnel.

The commission has completed interviews with candidates for city manager, members have acknowledged. But after the executive session, Mayor Jim Barnes would not confirm if that was the topic discussed. No action was taken afterward except to adjourn.

Bill Robinson can be reached at brobinson@richmondregister.com or 624-6608.

But they will pay part of insurance costs

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