City cancels longevity pay
By JENNIFER WILSON
News editor
City of Hillsboro employees will not receive their annual December "longevity pay," the Hillsboro City Council decided Tuesday evening.
But city officials want to emphasize that taking it away was an economic necessity.
Since 1998, the city has offered this longevity pay to employees who have worked for the city for more than five consecutive years. Since it's always given in December, the money has served as a "Christmas bonus" of sorts.
Longevity pay gives each full-time worker $3.00 for every month of service to the city. That number goes to $1.50 for part-time workers. So a full-time employee who's worked for the City of Hillsboro for five years would receive $180.
According to the pay policy, which was passed on Nov. 3, 1993, the council has to approve longevity pay for each year — hence, Monday evening's vote.
This year, longevity pay would have cost the city $6,200.
But with recent budget cuts coming down from the office of Gov. Bill Graves, cities now have to tighten their belts, said Mayor Delores Dalke.
This year, the city was supposed to get $135,000 in state financial aid, Dalke said. Now, that amount will be cut in half.
The longevity pay policy does say that that the council can grant it if there are "funds permitting," said councilmember Matt Hiebert.
But the lack of money may hurt workers who have been budgeting for it all year, said council president Len Coryea.
"People just build that in," he said.
Coryea asked if canceling the longevity pay would be equal to "pulling out the carpet" from the employees.
But looking at the situation from that perspective, the state has done the same thing to the cities, City Administrator Steve Garrett.
Garrett said that he's not in favor of longevity pay. He doesn't like bonuses because employees start relying on them as a part of their typical income, he said.
Councilmember Shelby Dirks said that in his past jobs, companies paid bonuses to companies based on how well the company did that year. In the case of the city's tightening budget, the "company" didn't do well, he said.
Pay increases should be based on merit, Dalke said, especially since finances are scarce.
"We're rewarding people just for the fact that they've been here, not for the job that they've done," she said.
Finally, after the discussion, the council voted unanimously to cancel longevity pay for this year — but they will consider it again next year, they said.
But Garrett said that he wanted the employees to know that they're appreciated.
The decision doesn't have to do with the quality of the employees, Dalke said, just the quality of the economy.
In other council business:
— After a quick public hearing, the council approved a resolution granting tax abatement to Container Services, Inc.
To encourage economic development within the city, expanding businesses can apply for a tax abatement on new equipment. Simply put, the company will not be required to pay all of its property taxes.
Container Services is buying $414,230 worth of furniture, fixtures, and equipment. For that expansion, the company will be granted a 63 percent tax abatement over the next ten years, said Jerry Rayl of Gold Capital Management.
According to a study done by Gold Capital Managment, the expansion at Container Services should result in four new jobs in the first year and 25 new jobs over the next ten years.
— The council accepted a bid from Wichita Electric for the runway lighting project at the Hillsboro Municipal Airport.
To construct the entire project according to previously drawn up plans, Wichita Electric will charge $49,606. Other bidders were Elcon Services of Hillsboro, with a bid of $72,920, and Phillips Southern Electric of Wichita, with a bid of $104,038.
If the ground isn't frozen at the beginning of 2003, work crews will begin the job in January. It should take about a month to complete, said a Wichita Electric representative.
While the company finishes the project, the airport will be closed.
