Monday, June 06, 2005

Questions for The Ogden City Council Concerning Municipal Largesse

The following letter appeared this morning in the Standard-Examiner letters section, and focuses on an important issue soon to be addressed by the Ogden City Council, i.e, whether to revive a City-wide policy of automatic City staff pay increases. He also suggests other alternative options, such as reducing local property taxes and cutting executive salaries: Whether the latter was tongue-in-cheek I do not know; although I do think its something that deserves some serious discussion here, at least.
Ogden has highest taxes in Northern Utah
Monday, June 6, 2005

In several weeks, the Ogden City Council will make some decisions relative to the 2005-06 budget.

This budget includes up to a 7 percent increase in pay for members of the city's work force. It has been stated the increase is needed, "otherwise we will lose some of the quality staff."

Ogden should be concerned about losing more of its quality taxpayers.

Its combined 2004 tax rate is 18.7 percent higher than South Ogden's rate; it's 22 percent higher than Roy's rate; and it's 37 percent higher than Riverdale's rate.

In addition to having the highest tax rate in Northern Utah, the taxpayers of Ogden also pay an aggregate 6 percent on their utility payments.

Options for consideration by the members of the Ogden City Council:

* Reduce the merit increase to 3 percent and base it upon the recommendation of an employee's supervisor.

* Fund the proposed 2 percent inflation increase.

* And fund these increases with a 10 percent decrease in the salaries of all department heads, CAO and the mayor.

Most Ogden department heads are paid a salary which is almost fives times the average salary in Weber County.

The Ogden City Council should look at a 5 percent pay reduction in the city's property tax rate for upcoming budget year and a reduction of the 6 percent utility tax to 5 percent.

Please start doing something for the "quality" taxpayers of Ogden before they all leave.

David Haun
Ogden
The Standard-Examiner recently published a pair of editorials opposing these proposed Ogden City employee pay increases. The first of these editorials, published May, 7, sounds some notes quite similar to Mr. Haun's:

When it's your responsibility to handle other people's money, it is best to be circumspect, not spendthrift. As the Ogden City Council formulates its 2006 fiscal budget, that should be its motto.
The attitude around city hall is one of smiles and good cheer, because there's enough money in the budget to give employees a possible 7 percent raise -- 2 percent cost of living, and up to 5 percent merit increase.
That's quite generous. Too generous, in fact.
The second editorial, which is even stronger in tone, truly identifies the problem with these proposed pay increases. "Taxpayer fairness" is the fundamental issue here, as the May 16 editorial so aptly points out:
Since taxpayers lay out, directly, the wages of public employees, why should they stand for them getting cost-of-living adjustments that most private employers don't offer, along with up to 5 percent merit increases that most, if not all, private companies don't offer?

If cities are finding they have enough revenue to offer up to 7 percent wage bumps to employees, they should consider lowering their residents' taxes.

Elected leaders should remember that private-sector employers were forced to keep wages low and lay-off workers to survive the years-long economic slump. Wage increases for government workers should closely mirror what's happening in the private sector.

We have nothing against public employees, but since they are paid via taxation,
they should never get more than the people funding their salaries. It's an issue of taxpayer fairness.
The Standard-Examiner is exactly "on the money" on this issue, I think, as is the former Weber County Assessor, Mr. Haun. Will the City Council show some financial discipline when these issues come up for a vote? Or will they continue to rubber-stamp this administration proposal, just as they have seemingly done so many other times in the past, with respect to so many other Administration proposals ?

Comments?

06/05 update: I discovered this Standard-Examiner article, on the front page of Section B. One highly-paid top-tier Ogden City executive, Nate Pierce, Ogden City Chief Administrative Officer, announces he's calling it quits.

Will there be more executive "resignations" to follow, as Our City Council whets the edge of the executive salary ax? Or will this departure be interpreted by the City Council as a dire warning of the danger in failing to cough up to our "indispensable" top officials the pay increases that they deserve and demand? So many questions -- so few answers.

5 comments:

Anonymous said...

I suppose there must be some reason to keep these Stalinesque Ogden City Department Heads around.

If we don't jack up their pay appropriately, they'll just leave.

So what if they do? It's not like any job position in the city won't get a flurry of qualified job applicants in their wake.

I say let those overpaid executives and government high officials go, if they think they need a pay increase in a tight job market. Somebody better and smarter will soon fill their job without the greed factor.

The graveyards are full of indispensable people. - Charles DeGaulle.

Jennifer said...

I agree with the man behind door number one. Let 'em go elsewhere -- let our fathers, mothers, grandfathers, and grandmothers keep their homesteads instead of losing them to the property tax demons, just so someone who probably won't stay in Weber County can live the way they were accustomed to before they moved to Weber County.

RudiZink said...

Interesting that you'd mention Nate Pierce, Mr. Glasmann. I caught this article in this morning's Std-Ex mentioning him:

"Ogden exec will call it quits
Tuesday, June 7, 2005

By Scott Schwebke
Standard-Examiner staff

OGDEN -- Nate Pierce, chief administrative officer for the city of Ogden, has announced he will retire Aug. 12.

Pierce, 58, who has worked for Ogden since 1984, said he is looking forward to pursuing other job opportunities in the community."

I thought it "might be fun to do something in the private sector," said Pierce, adding he also hasn't ruled out working again in the public sector. [...]"

The article goes on to say that he's now earning $108K/yr., and then adds:

"The city will likely wait several months before it decides whether to fill Pierce's job, because of costs associated with his employment contract...," Godfrey said. Pierce will receive a lump sum payment approaching $100,000 to cover unused sick leave, accrued vacation time and other benefits, he said... [...]."

While I suppose it's true that even a small city like Ogden must compete in the national marketplace for top-quality executives, I still find it difficult to believe that we can realistically afford salary/benefits packages of the kind described above. If this is indicative of the pay structure that exists throughout the top levels of Ogden City government, it becomes obvious why we're the most highly-taxed city in Northern Utah, as Mr. Haun suggests.

The article also reports that "The city will likely wait several months before it decides whether to fill Pierce's job." I'm glad to hear that the administration is apparently being prudent about this, and not rushing out to recruit another high-salary City Administrator to fill Mr. Pierce's post. Perhaps Mayor Godfrey will decide to consolidate Mr. Pierce's department with another existing one, a strategy that he's employed in the past with at least one other department, the details of which I can't recall. And even in the event that the City Administration decides it's absolutely necessary find somebody else to fill this slot, I'd be surprized if the City can't find some other well-qualified native son or daughter who is appreciate of the non-tangible benefits of living in a great place like Ogden, and who would be willing to work for some fraction of what Mr. Pierce is now being paid.

If the City Council and Administration are really serious about reducing the taxpayers' tax-bite, it seems to me that they need to take a close look at the executive top-tier, which appears unneccesarily top-heavy to me.

Full Std-Ex Article

RudiZink said...

Hiya Jennifer. Welcome to our community blog. So far this board has taken on a decidedly masculine tone; and it's nice to have some participation from members of the "fairer persuasion."

Here's hoping you'll check in often, and will continue to offer your comments and observations on a regular basis.

"The Lovely Jennifer" handle has a familiar ring...Am I acquainted with you in real life, perhaps? ;)

Anonymous said...

So this Glasman guy sounds like he might be the PR agent for Cook and Pierce? Or do they do golf together on Saturdays?

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