July 23, 2014 at 2:10 p.m.

Council says no to raises

Jay County Council

The Jay County Council wrapped up its initial budget review Wednesday with several points of business - including denying a wage increase, finishing budget cuts and pondering a local income tax increase.

As promised Tuesday, the council opened by acting on the proposed position change and salary increase for Jay/Portland Building and Planning department administrative assistant Pati McLaughlin. The council took a day to consider whether to approve the $5,700 increase, which was supported by the department's governing joint board and the City of Portland.

After some discussion, the council voted 5-1 to deny the increase, with one council member abstaining.

"What we have chosen to do ... is to vacate the administrative assistant position and put her in assistant director," said building and planning director Bill Milligan before the council voted. "It's not a raise. It's a change of position."

The council acted on the creation of the assistant director position in July 2008. After a job description by Milligan was submitted to the county's personnel consultant, the consulting firm determined the duties described warranted no more pay than was being paid to McLaughlin.

Milligan said he had rewritten that description this July, but had not submitted it to the consulting firm yet. Milligan said he wanted to "submit it to (the council) for your judgment."

"Two of the three of those entities approve of that position change," said Portland Mayor Bruce Hosier, pointing out the joint board, which governs the department, and the City of Portland, which provides 50 percent of the department's budget, were on board. "Let's please try to look at the value."

"Nobody has questioned the integrity of the department," said council president Gerald Kirby, reiterating his stance from Tuesday that he did not question the employee, but opposed the idea of giving a wage increase when the council has frozen salaries for all other employees.

"My position, quite frankly, has not changed," Kirby said. "I think making the change is an absolute insult to every employee in the county."

Kirby and councilwoman Marilyn Coleman said they both received phone calls Wednesday with feedback urging strongly against increase.

"This isn't right," Coleman said, summarizing the opinions of the calls she received. "That was their opinion to me."

Councilman Gary Theurer moved to deny the increase and was seconded by councilman Dan Orr. Kirby, Coleman, Theurer, Orr and Mike Leonhard voted to deny the increase. Fred Bailey voted to grant the increase (voting against the motion) and George Meehan, the council's representative on a joint board governing the building and planning department, abstained.

Hosier said this morning that although he respects everyone's right to differing opinions, the decision signals it is time to take a look at the agreement between the city and county.

"The way this process has unfolded is probably going to give cause to the city to reevaluate our position in this joint agreement," he said. "If we're truly going to approach this as a 50-50 partnership ... we need to reevaluate the whole process and make sure it's working.

"It's not personal. It's just business," he added.

Following the vote on the wage increase, the council continued to work through the remaining departmental budgets and made minor cuts, working toward its goal of trimming about $500,000 out of the proposed budget.

After cutting about $370,000 on Tuesday, the council reached an acceptable zone after trimming some departmental budgets but decided to take the sheriff's salary of $86,325.43 out of the general fund and pay it out of the Local Option Income Tax for public safety.

The sheriff's salary is being paid of the LOIT public safety fund, which will accumulate about $88,000 this year. Financial adviser Greg Guerrettaz had suggested the county move the sheriff's salary out of that fund so the county could stockpile and use LOIT to pay for new expenses with the Jay County Jail expansion.

"So it pretty much wipes it out," Theurer said of the sheriff's salary effect on the LOIT fund.

"County general is taking a beating," Kirby said.

With that money no longer coming out of the county general fund, Jay County auditor Nancy Culy said the budget is in good shape and shouldn't need to meek any more cuts.

"We're done whacking," Theurer said.

But considering the issue of an empty LOIT fund and the looming knowledge that, at some point next year, the council must fund more staff and expenses for the Jay County Jail expansion, the council pondered whether it might be time to increase the LOIT public safety rate.

"We've got to fund that later," Coleman said. "We have to."

As of now, the LOIT public safety rate is .05 percent, meaning that 5 cents out of every $100 earned income is taken into that fund. The council could increase that rate as high as .25 percent.

"If we were to raise it ... you're not talking big money to the individual," said Kirby, noting that the worker would only pay $1 for every $400 earned at the maximum rate.

The LOIT fund also benefits all governmental units, meaning that all six cities and towns also receive a payout. This year, according to a distribution report from the Department of Local Government Finance, the LOIT public safety fund earns about $150,000 total in Jay County, with about $88,000 going to the county, $43,000 to Portland, $13,000 to Dunkirk, $3,000 to Redkey, $1,200 to Pennville, $300 to Bryant and $75 to Salamonia.

The county can raise the rate incrementally by .05 percent, which would double those amounts for every level the council might decide to jump. At the maximum .25 percent rate, the county's portion would be about $450,000 a year.

"I'm thinking in terms of the maximum since it inflicts so little pain," Kirby said, but added that they don't have to go to that maximum.

The council has until November to authorize an increase, but would have to hold public hearings before doing so. Kirby suggested that the council think it over and could discuss the option again at a future meeting.

"I really think that it's going to help enough to get some serious consideration."[[In-content Ad]]
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