The salaries and benefits of city employees are once again turning into a pressure-cooker issue at City Hall.
Last year, a proposal for across-the-board pay cuts to help balance the 2010 budget created infighting and animosity toward city employees after their salaries became public.
Get ready for Round 2.
The first sign of things to come happened Monday when City Manager Penelope Culbreth-Graft and City Council members, who are starting budget discussions early this year, reviewed options to deal with projected shortfalls in 2011, 2012 and 2013.
Culbreth-Graft, who has consistently said she opposes pay cuts, told council members that she didn’t recommend reducing employee benefits and compensation to bridge the budget shortfall in 2011.
“You know my feeling on the matter, and we have seen impacts on our workforce just as a result of the discussions,” she said, adding that the council makes the final decision.
Her comments – and a companion report stating that reducing employee compensation and benefits were “not recommended” – didn’t sit well with at least two council members.
Councilman Tom Gallagher, who advocated pay cuts last year, said he was “disappointed” and “a little disturbed” that Culbreth-Graft hadn’t provided the council more information about employee compensation and benefits despite previous requests.
“I understood it was not recommended when I asked for the information,” he said. “I am tired of making decisions with incomplete information.”
(To listen to Gallagher’s comments at Monday’s meeting, click here and fast-forward to 2:42)
Gallagher also said that “many municipalities in this state, many of the counties in this state, have gone down that road” of cutting salaries and benefits.
“I’m not convinced that we’re where we need to be to be a sustainable community,” he said.
As difficult as it may be, Councilman Randy Purvis said the council needs to consider reducing employee compensation and benefits as a cost-cutting measure.
But the city administration first has to provide the necessary information for council members to conduct a thorough review, he said.
“I thank you for putting your position face up on the table,” Purvis told Culbreth-Graft.
“But with all respect, Ms. City Manager, it’s not your decision to make. It’s council’s decision,” he said.
(To listen to Purvis, click here and fast-forward to 2:50)
Afterward, Purvis told Culbreth-Graft he didn’t mean his comments to be disparaging.
“I respect you, and I appreciate your position and think we’ll go forward together,” he said.
Culbreth-Graft told council members that she had planned to bring them back salary information.
“We would typically bring that to you in a May or June timeframe,” she said. “At your request, we have already indicated that we would be expediting that and be bringing that back sooner than later.”
The tension spilled out of the meeting.
At 11:11 p.m. Monday, Jeremy Kroto, vice president of the Colorado Springs Professional Firefighters union, sent council members an e-mail calling Gallagher’s comments “dishonest and irresponsible.”
The next day, Gallagher fired back.
”You can quote me on this: (expletive) them,” Gallagher said in a telephone interview.
The city has 1,610 employees whose paychecks come out of the general fund, which pays for day-to-day operations.
The city’s 2010 general fund budget is $212 million, about $16 million less than the amended 2009 budget, officials said today.
but I am sure this city council will make sure 4.4 million dollars WILL go to keeping the USOC here.
Oh, and don’t forget that the big bosses will still get their bonuses!
Until Council takes the money spent and planned to be spent on the USOC boondoggle, they have no credibility on this subject.
”You can quote me on this: (expletive) them,” Gallagher said
To whom is the esteemed councilman referring?
Firemen today, police tomorrow, after that, the city manager, then the mayor, top salaried city employees, then the rank (pun intended) and file………
That attitude will apply to his constituents sooner or later.
It’s working … our city is being destroyed.
It’s unfortunate that city workers don’t understand elementary economics. Their pay and benefit packages are unsustainable. Something has to give. I think a good start would be and HSA health insurance plan. Employee health insurance rises millions every year. Sure, they don’t want to be like the rest of the world when it comes to health insurance, but their time has come. It is not sustainable.
Their pension plan is costing millions extra this year, also. I think they need to have their portion increased to cover the shortfall. At least they don’t have to be at the mercy of the markets with a 401K. They should have to fund the shortfalls, NOT the taxpayers. It’s their retirement, let them be responsible for it. The taxpapers don’t owe them a retirement guarantee.
If the employees don’t like these changes maybe they should look for a new job. Hundreds would apply for their vacant positions.
To read Kroto’s e-mail to the City Council — and Gallagher’s response — click here: http://citydesk.freedomblogging.com/2010/01/28/firefighters-lash-out-at-gallagher-who-fights-back/1423/
Daniel Chacon
I am with Gallagher on this. Most of us in the private sector had to go through pay cuts in the past year. Why can’t government workers have cuts?
Thank you Gallagher, it’s about time someone told the elitist where to get off.
Don’t like it……get a different job.
Vickie, PERA (and most other states’ pensions) ARE invested funds vested in the same markets as 401(k)’s. Since 2006, any new hire (teacher, state patrol, judge or municipal employee) starts with a pure 401(k) instead of the defined benefit – they have to manage it instead of PERA. In all cases, NONE of them participates in Social Security, and if they have prior SS credit, FICA penalizes between 50-100% of their rightful Social security earnings!!!!
So not only are they at the mercy of the 401(k) market, they are at FICA’s mercy as well.
You should redirect your envy to County pension plans statewide, where the expense of paying the pension on top of SS is higher than the single PERA expense for state-city workers.
“Culbreth-Graft, who has consistently said she opposes pay cuts, told council members that she didn’t recommend reducing employee benefits and compensation to bridge the budget shortfall in 2011.”
Really? Who’s workin’ for who, here? Outrageous!
So you folks want to balance the city budget on my back? Nice to know my neighbors got my back. How about we lose the USOC at around 50 million bucks? I can go down the road to Pueblo and get the same job I have here for 10 bucks an hour more. But I like the Springs and will stay here as long as possible.
What people don’t understand is we have a revenue problem. We aren’t taking in enough money to sustain the city we have built. No one trust our city council to make good decisions. The usual politics and wolf crying from city council has caused all our problems. Citizens won’t really know when the wolf is really at the door step. The other problem is people are quick to cut city employees salary and benefits to try and put a band aid on the real problem. The city doesn’t have an even stream of revenue to be counted on during good times and bad. I am a self employed carpentor and in great years I make $150,000 and in bad years I make $40.000. I budget accordingly. City workers in my same career field make what I make in low years. When the economy is good I don’t see the city giving their employees 75% raises, like the amount I can make. The city employees trade great gains for steady work and income. Let’s not be jealous of them right now because things are slow. Let’s support them and when we are making the big bucks during good times we will still have fair paid city workers taking care of our city. And Gallagher has never had a successful career, he is envious of those that have worked hard to get where they are in there careers. I hope he gets a beat down come election time. I will support anyone who runs against him. Educated quality leaders down stoop to the level he did.
Read this story about our fine Mr. Gallagher. He tells people what they want to hear at a particular time just so he can get a pay check.
http://www.csindy.com/colorado/gallaghers-island/Content?oid=1138998
Mr. Gallagher in the staory you said you wanted to make Colorado Springs a “World Class City” your words not mine. How do your proposals come to make this city a world class city. You pay crapy wages and your gonna get crapy work. Sure hire someone to take my spot. It makes alot of sense to spend the money to bring someone up to my speed just to have them leave cuz of crapy wages. Throwing good money after bad. I love Mr. Gallaghers comment that Colorado Springs should be a stepping stone for police and firefighters to move on to bigger and better cities. Very responsible Mr. Gallagher, spend my money to train these guys just so someone else can snatch them away so you have to start all over again.
Vickie- Please educate yourself prior to forming an opinion on how evil the city employee is. I pay into my health insurance. My cost went up this year. Matter of fact it has continued to rise year after year. I am not complaining about it. My pension contribution went up this year also. I pay 10% into it every month. I am not complaining about it. The reason why the pension costs have been rising is that the stock market 2 yrs ago was at its lowest point. Unfortunately the city is basing its numbers off of a snapshot taken December 2008 (the next one is due December 2010). So that means we are funding pensions to that snapshot in time. It has risen almost 3000 since that date. We, the firefighters, are funding the shortfalls along with the city’s contribution. We have been at the mercy of the stock market.
Nowhere in Jeremy Kroto’s letter did it state that he was leaving. Matter of fact he says “…Firefighters are interested in participating in community wide solutions that ensure the highest level of safety and service to our customers”. To that Councilman Gallagher replied “(expletive) them”.
Is that what we want as an elected official? Saying “____ them” to the cities employees. The employee’s that are stating they want to participate in a solution. To me, that is embarrassing that we have an elected official that is that hot headed. Based on this one response from him I ask, do we really want him representing us? I say no. Who’s next he’ll attack!
Cut the cops from $70,000 a year down to $40,000 a year. That would be a good start. The public sector should not get paid double of what the private sector gets.
Julie, what exactly is a private sector cop?
Jeff- I believe she is confusing a security guard with a public safety employee. Good theory up until you actually need a cop.