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City budget driven by $3 million increase in salaries

By LIAM FARRELL, Staff Writer

Published 05/13/08

City employees will get about $3 million more in salaries and benefits under Mayor Ellen O. Moyer's proposed budget, far outweighing any other increases in operating expenses.

"The people in the city deserve to have public servants paid consistently with the private market around them," Ms. Moyer said. "This is a city that expects high standards."

The proposed increase for salaries and benefits would eclipse the overall $2.5 million growth in the budget, which has corresponding decreases in everything from supplies to education and travel.

Ms. Moyer's proposal raises general and special fund spending to $67.8 million in fiscal 2009 from $65.3 million in fiscal 2008. The fiscal year starts July 1. Unlike the capital budget, which is mostly financed from debt, the general and special funds are made up from resident and business money - everything from property and income taxes to permit and parking fees.

Union agreements are largely responsible for the rise in salaries and benefits, said Tim Elliott, the director of the city Finance Department.

"This year the emphasis was salaries and didn't really leave a lot left for (increasing) operations," Mr. Elliott said, adding that personnel expenses make up about 80 percent of the budget.

Changes announced yesterday by the city Finance Committee will increase Ms. Moyer's spending plan by more than $900,000. Some changes are contingent on the Anne Arundel County Council adopting a hotel tax increase from 7 percent to 10 percent, which would increase city coffers by $750,000.

Although the city was scheduled to vote on the Finance Committee's recommendations and the full budget yesterday, a decision was delayed until May 19 to give the aldermen more time to study the spending plan.

The salaries and benefits picture under the committee recommendations essentially remains a wash from Ms. Moyer's plan: Net salaries go down by more than $100,000, mostly through cutting positions, but benefits go up by $150,000, with the total $3 million mark more than upheld.

Civil service employees, even those who are not represented by the American Federation of State, County and Municipal Employees, will get a 3 percent pay hike on July 1 and another 3 percent on Jan. 1. The timing of the increases, based on a four-year contract that runs through 2010, will basically give them a 4.5 percent raise, Mr. Elliott said.

In the police department, the pay scale will be shifted as the base starting salary goes up to about $43,000, he said. Consequently, officers will see a 5.3 percent across-the-board salary raise.

"Just about everything is driven by union contract," Mr. Elliott said.

For years, the city was training police officers who would quickly leave for better-paying departments and "dismally" compensating blue-collar employees, Ms. Moyer said.

"It has been catch-up," she said. "We were way low."

Alderman David Cordle, R-Ward 5, introduced a bill yesterday he said he hopes will help the city get a better handle on how negotiated labor contracts will affect the budget in the future.

The legislation would require unions to begin negotiations in the October before the beginning of a fiscal year and have them conclude by the first Monday in February to avoid retroactive pay raises and adjustments.

"In retrospect, some of the changes and raises and such (in contracts) are a mistake," he said.

Outside of salaries and benefits, the average budget expense decreases by 4 percent in Ms. Moyer's plan, said Alderman Ross Arnett, D-Ward 8.

"It is a very, very austere budget," he said. "The days of milk and honey are drawing to a close."

He said eventually the city will be faced with a problem: To continue with salaries that are difficult to afford, or lower them and risk losing employees who act as Annapolis' service providers.

"The day is now here that we're really going to have to start ratcheting down on the pay for our employees," Mr. Arnett said. "It is a real dilemma."

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Here is an idea - 2008-05-17 12:27:24

http://www.msnbc.msn.com/id/24671030/?GT1=43001

Creating an independent ethics committee. It's a shame Marylanders believe in the single party system of government. City council should be playing this role. But Annapolis would definitely benefit from an independent ethics committee overseeing city government. No more running the budget through in the cover of night. But Moyer is just taking hre cues from Owe'Malley.

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Peter D. - Annapolis, MD - Karma: Terrible

Why Rush the Budget Vote - 2008-05-16 13:55:37

The budget does not need to be approved by the City Council until June 30. The Mayor apparently is rushing this budget, which represents another increase over the year before, so it is not properly vetted by the Alderpeople and the public. Boss Moyer does not like oversight. Members of the City Council owe it to residents of Annapolis not to vote on the budget May 19 but to delay until further scrutiny and evaluation of the Mayor's proposed budget can take place.

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Stanford Erickson - Annapolis, MD - Karma: Bad

Where is there fat to cut - 2008-05-14 16:41:50

off her mouth she just want the head lines in the paper again

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ALFRED PARKINSON 111 - GREENSBORO, MD - Karma: Bad

Where is the fat - 2008-05-14 07:54:35

2001 city budget $48,273,460, 2009 city budget $81,360,720 and the city is still increasing spending. Growth in personnel budget from 2001 to 2009 proposed is 177%, total budget growth is 170%. There are many places to cut fat out of this budget, the Mayor and city council just need to do it.

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cindy cole - ANNAPOLIS, MD - Karma: Bad

Where is there fat to cut - 2008-05-13 22:31:37

I mean looking at the budget, I can see why it is strained. The Mayor has a measly $1.1M to run her office, including round trip cruise to our sister cities, and spending half the summer to tour Europe. Economic affairs gets $330k, if I knew what that was I could see spending that. The city is guessing we are going to need $88k to remove the one snow fall next year. We are spending $2.3M on Neighborhoods and Environment, must be outside Eastport. I can see the dilemma in this budget.

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Peter Dennis - Annapolis, MD - Karma: Terrible

City employeespolice&fire - 2008-05-13 21:04:39

1. Each retired member?s pension shall be increased by the same percentage as any increase in the pay scale for members of the same rank and years of service who are on active duty. If no increase in the pay scale for members of the same rank and years of service who are on active duty is provided in the annual budget, then the member?s pension shall be increased, effective July 1st of that year, by such cost of living adjustment

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ALFRED PARKINSON 111 - GREENSBORO, MD - Karma: Bad