What will it cost if the City Council OKs 2% annual cost-of-living adjustments for nonunion workers over the next two years? The answer is complicated, says the city manager

By Paul R. Huard for Ashland.news

Whether you see it as a way to keep top-flight city employees who provide excellent public service or a politically tone-deaf boondoggle during uncertain economic times, a proposed cost-of-living adjustment and improved benefits package for nonunion city of Ashland employees seems to raise the same question:

How much will it cost?

That is the question — among others — that the Ashland.news posed Friday to City Manager Sabrina Cotta. She replied that several factors, including ongoing union negotiations, turnover at the city and the uncertainties inherent in budget estimates make finding the bottom line complicated.

Cotta answered the questions and provided links to City Council documents that will allow readers to examine the issue on their own.

The Ashland City Council voted Tuesday to further consider a cost-of-living adjustment of 2% for each of the next two fiscal years and improved benefits for nonunion city employees, citing the need to seek more public input and deal with what some called misinformation about the proposed changes in compensation. The 2025-27 budget biennium begins July 1.

Councilors voted 5-1 to reexamine the proposed COLA and benefits package at a City Council business meeting Aug. 5, which would be their next opportunity to vote on an enabling resolution.

Supporters on the council say the package is a necessary step to keep good employees at the city so an excellent level of service can be maintained for Ashland residents and visitors.

Critics in the community say the proposed COLA and benefits package are too expensive and unnecessary during a time of economic uncertainty.

Cotta answered questions submitted by the Ashland.news on Friday by email. Her replies that follow were edited for clarity.

Ashland.news: If the resolution passes, what is the total cost of the proposed COLA and benefits package for the coming fiscal biennium?

Cotta: One thing that is important to note is the city is currently negotiating with five other unions, and the unionization of the city parks employees is also in progress. I cannot yet speak to the total impact of all COLA and benefit impacts at this point with regard to total changes in compensation until those matters are known and settled.

The budget included a 2% increase for each year of the biennium.

For the group of employees who span all funds, meaning they are not just general fund but also electric power, public works, etc. that are based on FTEs (full-time equivalents) approved but not necessarily current staff, that would be a lower number since we run at about an 8% vacancy rate due to staff turnover (people leaving the organization). 

We estimated $518,000 over budget during the biennium (2.8% for salaries) and $330,000 over budget in fringe benefits that are impacted by salaries (1.1% over budget). I will say that as people come and go from the organization that number will change, since we will have several retirements that will result in bringing on new hires, most likely at a lower pay grade. Due to operational changes, we may also see a change in positions.

Another thing to note: Someone touted the fact that we onboarded 40 employees last biennium as an argument that we do not need to worry about being competitive any longer. That number reflects the fact that people are leaving the organization and quitting to go somewhere else. We are unable to retain people at times. Very few of those positions were new. It is costly to lose employees. not only in dollars but also in operational effectiveness.

AN: How much (if any) money is already budgeted in the biennial city budget for the proposal?

Cotta: A 2% increase was budgeted across the board. It was known and communicated that the results for “comp and class” (employee classification and compensation) were not final, and union negotiations are ongoing, so adjustments will have to be made. “Comp and class” info can be found here.

This information was presented at the May 20 City Council meeting along with the proposed salary schedule for nonunion employees. While one can argue that the timing is not ideal, that is just the way things work out at times. We will go into the next biennium knowing the COLA. We must account for one year of the biennium for some of our unions and we will again have to make a “best guess” estimate for the following year. A budget is an educated estimation on operational needs for two years.

AN: How many nonunion employees would benefit from the increases? What type of employees are they?

Cotta: Ninety-nine employees for a total of 70 different positions. The exact positions can be found in the council packet that went to the City Council for the management resolution as Appendix A, which lists all the positions, here.

These positions include everything from Park Tech 1, accounting folks, IT analysts, human resources analysts and administrative coordinators in the departments to department heads and the city manager.

AN: Do the mayor and the City Council members get any kind of pay raise from the proposal?

Cotta: They receive $900 a month per the City Charter. They do not get any kind of pay raise from this.

Email Paul R. Huard at [email protected].