Full-time employees of the city of McMinnville could be seeing a little extra in their paychecks in fiscal year 2013-14. If a salary adjustment remains unchanged, they will share $147,000.
Finance Committee chairman Ken Smith says corporations often take the average inflation over the last 12 months (1.40 percent), add the Social Security increase for the year (1.50 percent), and average those two together (1.45 percent) in order to determine an appropriate raise increase.
Rather than give every employee a 1.45 percent increase, which would give higher-paid employees a larger pay raise than lower-paid employees, Smith recommended giving each employee $1,000.
“I took a look at the wage breakdown of our employees and we have 105 employees making less than $45,000 a year,” said Smith. “We have 42 employees making more than $45,000 year. In an effort, like we did last year, to raise the wage of employees who aren’t making as much, I recommend we give a $1,000 increase to all employees.”
By the breakdown: 46 employees make between $25,000 and $35,000, 59 employees make between $35,000 and $45,000, 28 employees make between $45,000 and $55,000, and 14 employees make over $55,000. No full-time employee makes less than $25,000 a year.
“I think the fairest thing to do, especially for employees making less than the average individual in Warren County, is to give lower-paid employees a higher percentage pay raise,” said Smith.
At $1,000, an employee making $25,000 a year would receive a 4 percent wage increase, an employee making $50,000 would receive a 2 percent wage increase, and an employee making $75,000 would receive a 1.33 percent wage increase.
Working for the city offers additional benefits too. Smith says the city pays approximately 60 percent of an employee’s pay in the form of benefits.
“Governments tend to pay better than private businesses when it comes to benefits, but ours is especially generous and I listed those,” said Smith.
According to the list:
• Beginning July 1, the city will pay 15.55 percent of the employee’s salary for state retirement.
• The city pays between 76 to 78 percent of health care insurance cost for employee’s coverage. The total cost depends what tier the employee is in.
• The city matches up to $50 per pay period ($1,300 per year) for the employee’s 457 savings plan.
• City employees receive longevity pay which amounts to $1,000 to $3,000 per year for employees with 10 to 30 years experience. The benefit is $100 per year of employment and starts after an employee has been with the city three years.
• Employees receive paid vacation, sick days, personal days, birthday leave (after being with the city one year, an employee gets their birthday off with pay), 14 paid holidays, and up to four days paid leave for completing the yearly Wellness program.
• A wellness points program can add up to a maximum of $200 per year.
• Passing a physical assessment test program can earn an employee up to $750 per year.
• Employees receive free Civic Center and Gilley Pool passes for themselves and their family.
• Administrative department employees receive a $300 a year clothing allowance.
On the committee with Smith are Aldermen Mike Neal and Ben Newman.
 Neal says he heard negative comments from city employees who felt that favoring new employees over those who have been with the city for years is unfair.
“The only comments that I have heard about pay raises and using this type of system is that folks who have been here a long time feel as though they are not treated fairly. A person hired right off the street is given as much as they would be getting when you do a straight $1,000 increase and not a percentage,” said Neal.
Newman says he would like to have some time to talk to a few city employees on how they feel about the way salary increases are being handled.
The discussion was postponed and a future meeting will be scheduled.