Fort Smith board approves police pay change

story by Luke Hobbs
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The Fort Smith Board of Directors voted on Tuesday (June 21) to lower the weekly overtime threshold for city police officers. The 6-1 vote came moments after a motion to table the vote for 30 days failed.

City police officers currently begin receiving overtime pay after 43 hours in a week, compared to 40 for most other city employees. Earlier this month, City Administrator Ray Gosack recommended lowering the police officers’ threshold incrementally to 40 hours over the next few years.

Director Steve Tyler made a motion to table a final vote for a month, saying he wanted to hear from the city Audit Committee on how much the overtime adjustment would cost. He also proposed a study session comparing the costs of employing police officers, firefighters, and other city employees. Tyler later said the Arkansas Municipal League had estimated that the overtime adjustment would increase the city’s contribution to police salaries by 1% to 1.5% over the next five years.

“That could be a substantial investment,” he said.

Lowering the hours from 43 to 40 would increase the annual police budget by an estimated $365,100. Reducing the overtime trigger from 43 to 42 hours will increase the 2011 budget by an estimated $53,100.

Tyler’s motion was seconded by Director Kevin Settle, who said that while he supported the overtime adjustment, the Board needed to be careful to “measure the weight” of the change before approving it. Settle asked Gosack whether the overtime adjustment could be applied retroactively if the Board waited 30 days to approve it, and Gosack said it could.

But Director Phillip Merry opposed Tyler’s motion.

“These policemen have family,” Merry said. “They’re already working extra hours, and they don’t have the benefit of saying no.”

Merry said he thought the issue was important enough that the city could find the money to fund the overtime adjustment and did not need to study its fiscal impact.

“By voting no [on Tyler’s motion],” Merry said, “I’m saying I don’t want to wait.”

Tyler’s motion failed in a 3-4 voice vote, with himself, Settle, and Director Andre Good casting ‘Yea’ votes, while the other four directors voted ‘Nay.’

Moments later, the overtime adjustment passed as part of a list of items on the board’s consent agenda. The vote was 6-1, with Tyler the lone dissenter.

Now that the Board has approved the lowering of the overtime threshold, it will be implemented in several steps:
• From 43 weeks to 42 weeks, beginning in July of this year;
• From 42 weeks to 41 weeks, beginning in January 2012;
• From 41 weeks to 40 weeks, beginning in January 2013.

The Board also voted 7-0 to allow Golden Living to participate in the state Tax Back Program, an economic incentive that will allow the company to recoup taxes it pays while adding new employees in its Fort Smith facility. Although the incentive package only uses state funds, the law requires that a company receive local government endorsement before participating in the program.

Golden Living recently announced it will move 200 employees to its Fort Smith facility, investing an estimated $5.7 million in the local economy. The Tax Back Program essentially refunds to the company any sales and use taxes it pays for costs associated with relocating its employees.