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Harrisburg officials discuss merit-based pay increase
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Published: May 20, 2009
HARRISBURG - With municipalities operating in the midst of difficult economic times, the Harrisburg Town Council met Monday to discuss ways to cut expenses, save jobs and balance the 2009-10 budget.
Michele Reapsmith, the town's finance director and interim town administrator, presented a proposed budget that would hold the current tax rate and maintain the town's current staffing.
Monday, the council shifted through more than 30 recommendations made by the budget committee, ranging from travel and training expenses to the budget for the town's Fourth of July celebration.
Perhaps the biggest point of discussion in Monday's work session involved increases in pay for some employees to bring their salaries in line with market values and whether to offer additional merit-based bonuses.
While everyone agreed that employees below pay grade should be brought up to market value, there was some reservation about offering additional merit-based bonuses when tough economic circumstances have stretched revenues.
The council voted 6-0 to boost the salaries of all employees below grade up to eight percent in 2009-10. Any employee that remained below market value after the eight percent increase would be eligible of an additional adjustment in the next budget cycle.
Councilman Jeff Redfern was absent from Monday's meeting.
The council was more divided on merit-based bonuses, voting 4-2 to allow up to two percent pay increases for employees who received above average marks on performance evaluations.
"What we need to think about going forward is really tying merits with performance," said councilman
Michael Hart, who made the motion to approve increases of up to two percent at the discretion of department heads.
"If we've got people who are underperforming, we don't want to reward them. Once people see they are being rewarded for performing, hopefully they will inspire others."
But council's Phil Cowherd and Rhonda Poppen voted against the motion, saying that during difficult times, it's necessary to find savings wherever possible.
"It's a hard thing when you sit in your house and you've been laid off and you look at the papers and see that the town workers are going to get an increase," Cowherd said. "The times say that we need to pull in the belt and save wherever possible. If we get out of this mess, then we can come back and revisit."
Cowherd and Poppen both stressed that their votes against the proposed allocation for increases was not a reflection on town employees and the jobs they are doing.
"It's not a vote against the employees," Cowherd said. "It is symbolic of the times we are in. I'm glad this year that we are able to keep all the jobs on the payroll. That may not be the case next year if we don't get out of the recession that we are in."
In addition to voting on a final budget at the council's regularly scheduled meeting on June 8, Reapsmith also suggested that the board vote on a new personnel policy — a practice that she recommended become a regular part of the budget vote.
Doing so, she said, would set the precedent for town employees to be aware of, and have available, new policies on an annual basis.
Reapsmith drafted an updated policy that will be sent through the town's legal department before being considered along with the 2009-10 budget.
• Contact Jonathan E. Coleman: 704-789-9105
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