Jonesboro leaders mull employee wage raises, could add $1.5 million to budget by 2022

City officials are working to tackle one of the most significant and controversial issues facing Jonesboro this year – wage increases for some or all of the city’s 600 employees.

Many employees, including police officers and firefighters, have complained for months that they make less than their counterparts in other similar sized cities in Arkansas. The City Council met in special session Monday night (Aug. 29) to review salaries and possible solutions.

“Something is going to have to be decided by this body,” Mayor Harold Perrin said.

Aldermen will consider a proposal that would increase the average police officer’s pay by $2,848. Sergeants and captains could get an increase of more than $5,000, while lieutenants could get more than $3,000. The assistant chief would get $8,744, and the police chief could get up to a $9,621. All the increases are based on incentive programs, and other factors that affect individual employees, Jonesboro Chief Financial Officer Suzanne Allen said.

The average starting police officer makes about $33,000 per year, according to the city. These proposed wage increases would cost more than $600,000 to implement this year, and would steadily grow to $1.5 million per year by 2022, Allen said. It’s a lot of money when you consider the city has an annual budget of about $36 million, she said. And, the amount only applies to the current police force. If the department grows in manpower, the number will balloon, she said. During the last 10 years, the city’s sales tax revenues have grown by nearly $850,000 per year. Sales tax is the city’s primary source of income, Allen said.

“We have to be cautious … whatever change we make to the salaries will last forever,” Allen told the council.

The council chambers were packed with concerned police, fire, and other workers in the city. It was noted that police and fire personnel expenses account for 56% of the total budget. Council members will have to consider if percentage increases or flat lump sum increases are the best way to raise employee salaries, Allen said. Incentive programs, longevity, retirement, and other perks offered will also have to be considered, she said.

Police and fire employee may deserve raises, but they are among the best paid employees with the city, according to an analysis conducted by the city. Random employees in each department, who’ve been employed with the city for at least 10 years, had their salary increases analyzed.

A firefighter salary grew by about 5%, while a police officer’s pay increased by 4% per year. A sanitation employee got a 3% yearly bump along with employees in the maintenance and parks and recreational departments.

City leaders will have to devise a comprehensive plan to deal with some or all of the pay issues, Perrin said. The city does not budget 15% of its anticipated revenues each year. This money serves as a contingency fund if there is a disaster, Perrin said. Some have pointed to these funds, and other funds the city has in reserve, as potential sources to fund employee pay increases.

The 15% hold back accounts for about two months worth of city expenses, or about $5.5 million, according to the city. When a catastrophe strikes, such as the ice storm in 2014, the city needs that money in its coffers, Perrin said. He would prefer to have a six month cushion, he added.

Council members will meet in committee Tuesday to formulate a proposal that will go before the entire council next week. If a comprehensive solution will be reached before the next council meeting, was not known.