Note: Article updated on Dec. 11, 2022
Foster Hughes, New Bern’s city manager and Sonya Hayes, the director of human resources told the Board of Aldermen (BOA) that 460 employees are paid 5%, 10% or 15% less than the market value during the retreat on Nov. 3, 2022.
After reviewing the packet for the BOA’s upcoming meeting on Dec. 13, an internal memo from the human resources (HR) director identified 201 vs. 460 employees. It’s unknown why the number is less than half of what was identified during the retreat. Elected and city officials were asked for comment but have not responded.
Background: Piedmont Triad Regional Council (PTRC) performed a salary study for the City of New Bern between February thru late summer of 2022. This information was available to the city in early summer but was not discussed in a public meeting until Nov 3.
Watch the meeting here:
During the city manager’s presentation, he stated, “The study compared our pay scale, our compensation plan to other benchmark cities like Clayton, Craven County, Goldsboro, Greenville, Havelock, Jacksonville, Kinston, Morehead City, Pitt County, etc.” According to PTRC report, others included, “Rocky Mount, Statesville, Wake County, Washington, Wilmington, Wilson, and Greenville Util. Com.”
Foster Hughes said the cost of the full implementation would be a “total of $1.7 million over the next six months. Over the course of a year, the following year, it would be approximately $3.6 million.” The alternate would be an incremental increase. He said, “5% or 7.5%…the first six months it would overall be about $825,000 for the course of a year. It would be just under $1.7 million with a 7.5% increase.” He said, “For six months, $1.2 million dollars. For the course of a year just under $2.5 million. Even if we did the 5% or 7.5%, we’re still behind in the market. We’re always going to be playing catch up.”
Takeaways from the lengthy discussion:
Alderman Bobby Aster asked how many people were underpaid and Hughes replied, “460…all of our employees are being underpaid.”
Mayor Jeffrey Odham and Alderman Aster asked about raising taxes.
Aster asked, “So are the employees going to be privy to this information?” Mayor Odham responded, “They’re watching right now. I guarantee it.”
From the podium, Sonya Hayes responded to legal questions, “That would be a Scott question.” She was referring to M. Scott Davis, the city attorney. It’s unknown why Davis or the Assistant City Attorney Jaimee Mosley were absent. Kim Ostrom, the finance director filled Davis’s seat next to Hughes among the BOA while the rest of the Directors and senior staff were required to sit on the benches with citizens during the four plus hour meeting.
Hayes said, “We definitely need to do something for our employees.”
Aldermen Johnnie Ray Kinsey asked, “Foster, what do you have in mind?” Hughes replied, “I would be comfortable with either a 5 or 7.5% increase.” Kinsey replied, “I agree with the 7.5% myself.”
Hughes referred to the workforce, “Folks today, they’re coming out of college. They’ve got a different expectation. They’re not looking to get a nice big house…You know the tiny home and just enough to to where they can have fun and do whatever they want to do. You don’t see that work ethic that you that a lot of folks have grown up with and that’s just the way of the world right now. And I will say this out of our 470 employees we have some highly dedicated employees who really overall they don’t complain. They show up to work everyday, weekends, nights. They do their job uh. Do they get some grief from from the citizens every once in a while. Yes, but also do they make those citizens life better when when they come out and fix those issues. Absolutely and that happens every single day and you know we try to thank them as much as we can for the service that they do. But it’s a thankless job working in local government…”
Alderman Aster stated, …I personally have a problem giving a straight 7.5% across the board. I mean again you give someone 7.5% or even 5% across the board and when he pulls his salary survey up and says well damn they ripped me off I’m supposed to get, I should be up 15%…What are you going to tell a man, I mean, if you go ahead and move them up to where the consultant recommends them to be we’re through with it.”
Brinson commented, “I’m trying to understand. To me this looks like a two-step process. You know, this this full implementation, 7.5% and 5 % takes care of our current employees.”
Aster said, “Sonya, are you’re telling me that every single employee and every single um job fell under the recommendation of the consultant’s recommendation?” Hayes responded, “Every job, yes.”
Alderman Barbara Best remarked, “The only thing I have to say about this whole salary study. We pay for this salary study. We should go along with the recommendations that was given to us by this this company. And we have our all of our employees as Sonya said is 10 below the market value. I think we need to do something to get everyone up to the market value. And then later on, we need to look at our pay scale and increase our pay scale. I’m all for our employees. We got to do what we got to do to get them up to…the average market value and I know we’re going to have to select one of these two options if that’s the way to go.”
Prill asked, “So five years ago the city had, I don’t know if it was the same consultant.” Hayes replied, “Yes.” He continued, “what was the result at that time? What…did the board have to wrestle with five years ago?”
The HR Director replied, “There wasn’t a bunch of wrestling if I recall…we were really close…not all the positions moved. Some of the positions were where they needed to be, so moved by one grade. I don’t recall any that were recommended to be moved up by three grades…”
Prill asked, “We’re talking about two different issues…We’ve got some structural issues with the whole pay scale that needs to be addressed…and then the other issue is just where each individual is going to fall out with with adjustments being made. We’re not going to be able to do this all at once so should we be taking a little bit of a longer term approach to this? You know look at five-year time frame and make a commitment to making some very serious structural changes over a period of five years or whatever the number is…and yes, they would need to be aggressive every year but lay it out for a longer term and you know the staff might look at it and say oh yeah but I want it all today. Well, no you’re not going to get it all today um but over the course of X years we’re going to get you where you need to be. I don’t know if that’s a viable option. I mean I you know staff would have to come back and say that yeah we could do that or no it’s just not workable.”
Hayes replied, “…I know that it’s difficult to bite the bullet. I know this is a lot of money, but I think if we stretch it out and say okay let’s do this incrementally over a five-year period, then you know the other municipalities are being created with the take-home cars and the other things and increasing their salaries.”
Odham said, “My final comment is going to be, obviously we have a problem. We got to fix it. It’s not always the answer to throw money at it and I understand that the employees probably disagree with me on that, but I deal with employees that disagree me on that every day….I would personally like to sit down with staff…and I want to go through this in detail and two other board members are more than welcome to join me in that discussion… what I don’t want to do is bite this bullet and say let’s do something and then we’re all sitting up here at budget season and everybody says well I’m not raising taxes. Then what are you going to do you’re going to be letting some people go or you’re going to be cutting some services. And that’s not the direction that I want to go.”
The city employee pay plan is on the BOA meeting agenda scheduled for Dec 13. PTRC recommended that the city to adopt the proposed pay plan and assign each classification to the pay grade commensurate with, and supported by, the comparable market data.
In the internal memo, the human resources director recommended the BOA adopt the following,
“…The proposed pay plan and assign each classification to the pay grade commensurate with, and supported by, the comparable market data.”
“Employees will receive salary increases based on the number of grades their position classification will advance as reflected below:
– 1 Grade Advance: 3% annual salary increase
– 2 Grade Advance: 6% annual salary increase
– 3 Grade Advance: 10% annual salary increase
– Employees who are assigned to a position that will decrease by one (1) grade will receive a 1% bonus.”
“Once all percentage increases have been applied, employee salaries that still fall below the minimum of the new range will be increased to the minimum of the new range.
“The total implementation cost is approximately $1,154,668 for six months. The estimated annual implementation cost is approximately $2,309,336.”
“Address additional compensation measures related to the Market Pay Study findings during the FY 23-24 budget process. Recommended increases, if any, will depend upon budgetary constraints.”
The city received $6,704,351 of American Rescue Plan Act (ARPA) funds last year. The former board made the decision to split $1,117,392 for each Aldermen to spend the money as they preferred although the spending deadline wasn’t until Dec. 31, 2024.
Former Alderman Odham included Alderman elect Bob Brinson in the decisions to allocate ARPA funds for Ward 6. At the time, former Aldermen Sabrina Bengel and Jameesha Harris did not ask Aldermen elects Hazel Royal and Rick Prill for input.
According to American Rescue Plan Act of 2021: Spending Revenue Replacement Funds on Salaries and Benefits on Coates’ Cannons NC Local Government Law’s website, “Many NC local governments, particularly those receiving under $10 million and claiming the standard allowance, have decided to spend some or all their American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Fund (ARP/CSLFRF) monies to cover employee salary and benefit expenditures.”
Here’s a breakdown of the city’s ARPA funds provided by the city of New Bern.
It’s unknown at this time whether the board can or will consider reallocating ARPA funds as the monies were not mentioned on Nov. 3.
People are allowed to address members of the board during the Dec. 13 meeting for four minutes each during the Petition of Citizens agenda item. The BOA asks speakers for their name and address, but people are not required by law to provide this information. The rules to speak are, “Comments will be directed to the full board, not to an individual board member or staff member.” The city may have rules in place, but they cannot enforce them because it would infringe on peoples First Amendment right to freedom of speech. Sign up before the meeting starts at 6 p.m. at City Hall located on the corner of Pollock and Craven Streets.
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By Wendy Card, Editor