Fort Smith directors asked to consider citywide wage freeze in 2010

Fort SmithNews on the Wire

by The City Wire staff ([email protected]) August 17, 2009 10:52 pm 64 views 

The Fort Smith Board of Directors were asked Monday (Aug. 17) to consider a wage freeze for all city employees in 2010.

Planned salary increases in 2010 range from $544,000 to $823,000, or as much as 2% of the city’s average annual operating budget. The city faces an estimated revenue shortfall of $1.5 million, with $620,000 resulting from declining collections of the countywide sales tax.

City Administrator Dennis Kelly said considering the tight budget conditions and tough national economic conditions, the time is right to “step in solidarity” with those in the area who are out of work or who have seen their pay frozen or reduced. Kelly also noted that the Consumer Price Index is in negative territory. Indeed, the U.S. Bureau of Labor Statistics reported Aug. 14 that the CPI for the 12-month period ending July 2009 fell 2.1%.

“In a lot of respects, we’re all lucky to have a job,” Kelly said.

With the CPI reflecting that the cost of living has declined and with the city facing tough budget decisions, 2010 “is the one year we should be looking at” a wage freeze, Kelly repeated to the board.

Such a wage freeze would have the most impact on firefighters, who might see pay raises up to $5,000 if they achieve a merit or step increase. The step pay for police officers is around $1,500. The city employs about 900, with about 200 of those employed as police and about 135 employed as firefighters.

However, and prior to Kelly’s announced recommendation of a wage freeze, City Director Bill Maddox said he opposed merit and step pay increases “because they can definitely get out of hand through the good old boy system.” Maddox alleged that the merit pay system is “out of control” and costing the city a lot of money.

When asked by The City Wire about proof of the out of control system, Maddox said he didn’t have proof and didn’t need proof.

“I just know in my heart that it’s not right,” Maddox said.

The directors are expected to discuss the wage freeze recommendation during an Aug. 25 study session to be held at 6 p.m. at the Elm Grove Community Center.