Sean C. Morgan
Police employees union representatives had not responded as of last week to a July 15 offer to settle their labor contract, City Manager Craig Martin told the City Council during its Aug. 23 regular meeting.
The city and police employees reached an impasse earlier this year and are scheduled for binding arbitration on Oct. 17, during which an arbiter will choose either the city’s or the employees’ final offer.
“The city proposed the settlement offer in hopes of ending the ongoing labor dispute and in hopes of avoiding additional taxpayer costs should the matter end up in binding arbitration,” Martin said.
The offer included a one-time 2-percent base salary cash payment for the 2010-11 fiscal year; an additional 2-percent cost of living adjustment for 2011-12; and a 3-percent adjustment in 2012-13.
The offer was made based on projected savings of legal expenses the city will likely incur should it continue to arbitration, Martin said. That cost is expected to be between $25,000 and $30,000.
The city did not hear a response from union representatives since the July 15 offer date, Martin said. “We assume the offer has been rejected and as such, this matter most likely will be decided by an arbitrator in an arbitration hearing.”
If the union prevails in arbitration, Martin said, the city is anticipating the need for budget cuts in police services, including possible staff reductions, which “would further hamper our law enforcement coverage, given the Police Department is already operating with two fewer officers than in previous years and further funding losses are projected should the additional taxing authorities create more tax compression.”
Compression is revenue loss based on real market value property tax limitations.
City budget policy requires each fund to stand alone, Martin said. With compression losses rising in the police levy, a perfect storm is forming.
In combination with compression, “if the union prevails, I can’t say there won’t be a significant negative financial impact on police services funding,” Martin said.
The city is trying to recognize the value of its employees, he said, but it also “is staring down the barrel” of less revenue to sustain it.
Appearing before the arbiter will be the city’s offer: No general wage increase for 2010-11 and the addition of two 3-percent steps effective on the anniversary of employment the following two years.
The last union offer was for a 3-percent adjustment in 2010-11 and 5 percent each in 2011-12 and 2012-13. The union also seeks eight hours of compensatory time for any employees working on 12-hour shifts.
The New Era did not receive a response to calls to a union representative prior to press time.