Budget committee takes first crack at fiscal year 2022

Libby City Council’s budget committee has recommended a set of counter-offers to union-proposed amendments to the municipality’s upcoming financial roadmap.

The American Federation of State, County and Municipal Employees requested the changes to Libby’s fiscal year 2022 budget on behalf of city employees.

Mayor Brent Teske presented the requests, which included wage increases, changes in certain pay grades, a bump in the clothing allowance and a cash in lieu of benefits program for public employees, during an April 7 committee meeting.

Teske said the union’s request for a 5 percent hike in wages was steep considering that the city has historically approved increases of just over 3 percent.

When calculating yearly wage steps, Teske said the municipality generally offers a 1 percent bump in pay in addition to a cost-of-living increase. This year, the suggested cost-of-living adjustment was relatively low at 1.5 percent so Teske asked councilors to consider bumping it to 2 to 2.5 percent. Along with the standard 1 percent increase, the mayor’s ask put the overall wage step between 3 and 3.5 percent.

“If that’s feasible, doable, that’s what I’d like to counter,” said Teske.

The committee adopted a recommendation for a 2 percent increase in the cost of living, which translates to a 3 percent overall step in wages.

Union officials requested the city raise its clothing allowance to $150 annually per employee and pay the amount directly to employees. The municipality currently offers $100, which employees receive as a reimbursement after presenting receipts. The complication with paying the allowance directly, according to the mayor, is that it would make the funds taxable income.

Committee members adopted a recommendation to increase the allowance to $150.

The union’s request to provide cash in lieu of benefits for certain employees would be a boon for the city’s budget, according to the mayor. Teske said the proposed system would allow city employees with alternative health care packages — commonly ones provided by a spouse or through the U.S. Department of Veterans Affairs — to opt-out of the city’s plan. In lieu of opting out, these employees would collect two-thirds of the cost of their plan.

Teske said Lincoln County used a similar system with its employees.

“It really wouldn’t be an out-of-pocket cost,” he said. “We would save in paying that premium.”

Sikes said the municipality’s health care package is offered through Montana Municipal Interlocal Authority. Councilors would not have to worry about a hike in health care premiums if city employees opted out of the program since the authority pools Libby staff with employees from municipalities throughout the state.

Sikes said city employees would have to prove they had another source of insurance before they could drop the city’s plan.

The committee adopted a recommendation for the cash in lieu of benefits program.

In response to the union’s request for a pay grade bump for utility and billing clerks, Teske suggested allowing staff to graduate to a higher pay scale after a year on the job. The mayor said he had talked over the proposition with City Administrator Jim Hammons.* Both agreed it would be fair to allow clerks to advance from pay grade nine to 10 after a year with the municipality.

“It would help us retain those folks, if they were paid a little more and there was some kind of … incentive,” Teske said.

Committee members voted in favor of Teske’s proposed grade increase for clerks.

Teske pushed back against a union request to give employees with a leadman designation a grade increase in pay. The mayor said a leadman is a city employee who serves as a supervisor but lacks disciplinary authority. Councilors have already increased leadman pay by three steps. Teske said that bumping leadman pay by a scale could unfairly favor newer employees over those who have been with the city longer.

“It’s not consistent, it’s not fair,” he said.

Teske said the city had to reject a union demand that employees living within the city limits receive free water and sewage service. The mayor said this would not be possible under state statute.

A spreadsheet including all the approved recommendations except for the clothing allowance, showed the city’s payroll would total $1.6 million in fiscal year 2022. Payroll in fiscal year 2021 amounted to $1.54 million.

*The spelling of Hammons's name has been corrected