‘We can’t afford not to.’ Lexington approves huge salary increases, bonuses for staff
To keep and attract employees, Lexington authorized a 6 percent salary increase for non-sworn city employees, a one-time bonus for all staff, a boost in its minimum wage to $15 and some supplemental pay hikes.
The Lexington-Fayette Urban County Council approved a series of ordinances and resolutions Thursday night to allow the city to raise pay.
The city gave employees a 3 percent salary increase starting July 1 as part of the current-year budget. A second 3 percent increase will take effect in January, according to Chief Administrative Officer Sally Hamilton.
In addition, the city will up its minimum wage to $15 and increase hazardous duty pay — for employees who are around hazardous substances — and on-call pay.
Approximately 1,861 employees, including police, fire and corrections, qualified under the federal coronavirus relief rules for a one-time $5,000 bonus. At least 232 of those employees make more than the county median income of more than $72,225, Hamilton said. Other workers eligible for the federal money were janitorial, waste management, child care, social services and public health staff.
Hamilton said the city’s 954 employees who did not qualify for federal coronavirus relief supplemental pay will receive $3,500. That includes all directors and commissioners. There is no salary limit for the one-time bonus.
“Many of our employees were here and worked throughout the pandemic,” Hamilton said.
Hamilton said the city has struggled over the past few years to attract and keep employees. The pay increases were necessary to maintain city services.
The pay raises will cost the city’s general fund $4.7 million. In addition, the administration will ask for an additional $2.6 million from coronavirus relief money for the one-time bonuses for the 954 city employees. The city must pay additional costs and fees, including additional payments into the pension system, associated with those one-time bonuses.
The council previously set aside $15 million from the American Rescue Plan Act money for supplemental pay.
“We can’t afford not to do this,” Hamilton said.
In addition, the council agreed to hire a consultant to look at the city’s pay grades by profession and job title.
“We know that we are way off in some of these,” Hamilton said. The city recently had to increase salaries for some engineering positions and for mechanics because it could not get qualified applicants.
The city also added two new paid holidays for city employees —Juneteenth and Veterans Day.
Fewer qualified applicants, low starting salaries
In the last three months, the city has tried to recruit for 80 positions — 45 percent had five or less qualified applicants apply and 71 percent had less than 10 qualified applicants apply, Hamilton said.
It wasn’t that long ago the city would sometimes receive up to 60 applications for jobs, she said.
When the city has posted positions on social media, people often balked at the salaries, Hamilton said.
“Good luck with that hourly pay. This position will stay unfilled,” wrote one person in response to a city job posting.
Several council members asked during an earlier meeting Thursday if the city can afford the pay hike. The city recently ended its fiscal year with a $28.1 million surplus.
Finance Commissioner Erin Hensley said the city is seeing better-than-expected tax collections from its payroll tax and in other revenue categories. Hensley told the council the city expects to have enough money this year to cover the pay increases and would not be taking it from the surplus.
Louisville has proposed similar one-time supplemental pay increases — through either American Rescue Plan Act money or other funds — to employees who worked during the pandemic. However, Louisville will require those that get that money to show proof of vaccination or to be tested regularly, Lexington city officials said.
Councilman David Kloiber asked if Lexington was going to consider something similar.
Hamilton said because many of the people who worked during the pandemic did so when the vaccine was not available, the city did not feel like it should require vaccinations. The city has not asked or tracked how many of its employees are vaccinated.
The $5,000 one-time bonus pay is part of the collective bargaining agreement between the city and the Fraternal Order of Police Bluegrass Lodge 4. That agreement is expected to get a final vote on Nov. 4. Total pay raises for four years for police officers and sergeants will cost the city an additional $21 million.
Witt says sheriff’s department should be included
Fayette County Sheriff Kathy Witt asked the council during Thursday night’s meeting to include 50 of her staff in the $5,000 supplemental pay category.
Witt said the deputies worked throughout the pandemic. Deputies transported prisoners, delivered medication for people who could not get out during the pandemic and provided security at the courthouse.
Witt said her deputies were exposed to the coronavirus just like city police officers, who are receiving the $5,000 bonus pay. Witt said the department recently transported an inmate from Florida and later learned the inmate had tested positive for COVID-19.
Earlier Thursday, some on the council said they thought Witt’s office might qualify for additional pay through Gov. Andy Beshear’s plans to use the state’s federal COVID relief money for bonuses.
Witt said Thursday night officials from the Department of Local Government have told her that her office does not qualify for state funds. It only qualifies for the city’s portion of federal coronavirus relief money.
Councilwoman Amanda Bledsoe said the council is meeting next week to further vet American Rescue Plan Act eligible projects. The council can still use that money for additional pay for sheriff’s deputies who worked during the pandemic.
“By that time, we may have better figures (on how much it would cost),” Bledsoe said.
This story was originally published October 28, 2021 at 5:34 PM.
