JCC Administrator Will Suggest Staff Bonuses, Maybe Raises

By Desiree Parker Friday, November 18, 2011

Sticking with his promise at budget time this past spring, James City County Administrator Robert Middaugh will be suggesting employee bonuses for this year and will consider pay increases for staff in the next budget cycle.

Middaugh said in his budget statement earlier this year that, due to inflationary pressures of rising costs in all areas, “pay increases cannot be deferred beyond FY 2012.”

He pointed out the county has seen a tremendous surge in population growth over recent years, while the county has cut back staff numbers to make up for the poor economy. This means that staff workloads have significantly increased; a stress that “cannot continue indefinitely.”

In his memo to the board prior to next week’s work session, Middaugh wrote, “as we discussed in the Fiscal Year 2012 budget meetings, the County employees are a critical resource in the provision of services to our Community.

“County employees have been asked to do more with less in the previous years and have responded by addressing the additional workload and minimizing the impact to our residents. Approving a one-time bonus in this calendar year will provide a morale boost and demonstrate clearly that the County values its employees and their contributions to this community.”

Middaugh wrote in an attachment for the upcoming meeting that the county is one of three out of 21 localities and public sector entities in the area that haven’t adjusted employee pay in fiscal year 2011 or 2012.

The county has managed to save money through fiscally conservative spending habits and responsible budgeting, Middaugh said, and “for purposes of the compensation adjustment discussion, I believe that it can be demonstrated that a sufficient amount of funds have been secured in order to consider an adjustment to compensation for the employees at this time.”

The $1.5 million in savings in 2011 will fund the proposed bonuses, according to Middaugh.

When the new board is seated at the beginning of the year, Middaugh will ask them to consider a “modest increase” to employee base salaries.

Though the county will see some surplus funds this year, in a few months the county will start its tax reassessment cycle, which is expected to significantly lower revenues.

The Board will meet at 4 p.m. Tuesday in Building F of the county government complex on Mounts Bay Road.

Where do some board members stand on the issue?

Three current board members were asked the following question in a Q&A with WYDaily prior to the recent election: Will you support raises for county employees in the next budget? Explain why or why not. If your answer is yes, describe how these salary increases will be funded.

Jim Kennedy answered: "Whether or not county employees will receive a raise or a bonus next year depends on revenues. James City County has not escaped the effects of our national economy, and many in the community have seen their own net worth – often based on the values of their homes – decline. We have to be mindful of the economic constraints that have been placed on our taxpayers, and I will not support an increase in the tax rate."

Chairman Mary Jones said: "A very high percentage of James City County residents working in the private sector have not received a raise in many years. Others have experienced layoffs and underemployment in the current economy. In fact, real incomes across America have been declining over the past few years. Between June 2009 and June 2011, inflation-adjusted median household income fell 6.7 percent. Just as families who work and live in the private sector have had to tighten their belts, government – which relies on those families for a significant percentage of revenues – must be considerate of the financial limitations of taxpayers.

As such, I will support raises for county employees if it is fiscally responsible to do so."

John McGlennon responded: "Providing a raise for county employees has to be a high priority of the Board. For three years, our employees have been asked to work harder as the county’s population has grown and the county’s workforce has gotten smaller, and they’ve done it without complaint and without raises. At this point, we are one of the only localities that has not planned for a raise, and we need to do so. The source of funding will be a challenge, but we have had to set priorities every year, and this should be given high ranking this year."