City workers bank in bonuses
Despite recession, employees split $55K -- on top of raises
By KATI BEXLEY
kati.bexley@staugustine.com
Publication Date: 12/11/08
Despite the recession, the St. Augustine City Commission voted this week to give all 350 city employees holiday bonuses totaling $55,000 as a way to "build morale."
The bonuses come on top of the 3 percent raises all city employees got earlier this year.
The employees have received the bonuses every year, and the City Commission decided to once again give the funds.
Commissioner Errol Jones said he knew the community's perception of the bonuses could be negative, but the city has to continue to put money into the economy to help it grow. The commission unanimously voted for the bonuses.
City Comptroller Mark Litzinger said the city's roughly $48 million budget is "as lean as it's ever been" this year, but the bonus money did not cause the city to cut any services.
However, he said the money could have been used for projects such as rebricking historic downtown streets. Also, in past years while formulating the budget, the City Commission came up with "Wish List Items" that have included renovating city parks. The city would try to use any extra funds on the projects, which have ranged from $5,000 to $15,000.
This year, city staff told the commission there wasn't any money left over in the budget for the Wish List.
Litzinger said the bonuses are a morale builder for staff, but, "It would never be chosen over a service needed for the city."
"If it comes down to getting rid of one (police officer) or the bonus, we would get rid of the bonus," he said.
Jones and Commissioner Nancy Sikes-Kline requested that when city staff develops the budget next August that the bonuses be looked at again and, if necessary, the money be used elsewhere.
Jones said if the commission drops the bonuses in August, employees would have time to prepare to do without them.
"It doesn't seem fair to take away the money a week before Christmas," he said.
City staff budgets for the fringe benefit every year and employees count on it. The amount given is based on how many years the employee has worked for the city. It begins at $25 and the maximum amount of $400. On average, Litzinger said, most employees receive $100 after taxes.
Litzinger noted when city staff tightened this year's budget they reduced city employees' raises.
In the past, employees received a cost of living raise, determined by the state Department of Labor, and then could receive 2 percent more based on merit. That meant an employee this year could have received a 7.5 percent raise. Instead, the city gave 3 percent raises to everyone.
Litzinger said the bonuses mean a lot to city employees, especially those who have worked at City Hall for decades.
"It's not like anybody's building a pool with this bonus. You could go out and buy a plastic one, maybe," he said. "Some of the employees who have worked here for 30 years use this money to buy their Christmas dinner."
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