Town leaders weigh proposed pay hike

In this tight-budget climate, Chapel Hill town employees are keeping a vigilant eye on tentative pay raises for fear they might suddenly disappear.

“We no longer feel that our governing body is committed to our welfare,” said employee forum representative Maggie Burnett during a public hearing last week.

During the hearing, Burnett and other employees displayed solidarity for Town Manager Cal Horton's proposed 3.78 percent pay raise for town employees.

The raise, which would be merit-based, is intended to help keep the town competitive with surrounding employers.

A recent survey conducted by town staff involving 43 benchmark jobs indicated that 44 percent of the surveyed jobs paid below the market average.

Workers hope the raise will take the edge off increasing costs of living such as rising healthcare and commuting expenses.

The planning department has reported that only 28.5 percent of town employees live within town zip codes, which extend beyond the town service area.

Burnett claimed that due to rising fuel costs and an average 25-mile commute, driving expenses could increase by more than $500 per worker next year.

Under the proposed increase, she said public works employees could expect an additional $14 per week.

But during a May 12 budget work session, council members requested a report on the impact of reducing the pay raise to 2.5 percent.

During the hearing, council member Jim Ward said given the budget atmosphere a smaller raise might be appropriate, adding that the reduction is not a critique on the quality of the town’s workforce.

But employees have been quick to pick up on Ward’s remarks.

“I cannot help but feel that you believe that town employees aren’t doing high quality work,” Burnett said in response to the comments.

Public works employee Adam Smith drew loud applause during last week’s public hearing when he gave an emotional speech about his frustration with what he perceived as a lack of respect from the council.

“I cannot afford to move because that costs money,” he said. “But I cannot afford to stay — especially if you are not willing to acknowledge our contributions.”

In an interview Tuesday, Ward said his comments were misunderstood.

“I am supportive of pay increases for the lower half of our town employees,” Ward said. “Folks who are making $25,000 to $35,000 are on the edge of being able to afford living in Chapel Hill.”

Ward said he would ask Horton and Mayor Kevin Foy to prepare a proposal maintaining the 3.78 percent raise for lower paid workers while offering smaller raises to higher paid workers — who he said could better absorb the increase in cost of living.

But Council member Mark Kleinschmidt said he hopes the council will pass the proposed across-the-board pay raise, conceding that it was still “not as much as we should be doing.”

“This is holding people where they are,” Kleinschmidt said. “It’s unconscionable to pull back below that.”

The proposed raise will cost the town more than $700,000, which is equivalent to more than one cent on the property tax rate. Town staff are projecting a nearly 3 cent property tax increase for fiscal year 2005-06.

Horton said staff will provide information about the impact of a reduced pay increase during the June 15 budget work session.

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