Stimpson proposes city raises, health care costs to rise

MOBILE, Ala. (WALA) – Mobile Mayor Sandy Stimpson released details on his proposed city budget Monday, August 18. Tuesday he will hand the final draft over to the city council for review and a vote.

POSSIBLE PAY RAISE FOR CITY EMPLOYEES

“We regret that it has been seven years since you had a raise. By making the welfare of our city employees a high priority, we built the budget to allow for these increases,” wrote Stimpson in an email to all city employees Monday.

Stimpson’s administration proposed two raises.

  • The first is a cost of living adjustment of 2.5 percent that will take effect in October 2014.
  • The second is a merit raise of 2.5 percent that will take place in April 2015.

CHANGES TO HEALTH CARE COSTS

“We believe that we can continue with our current coverage, but our cost sharing arrangement is going to have to change. For the last several years, the city has not been in compliance with its 80/20 cost share. Currently, the cost share is about 84/16 for current employees,” wrote Stimpson.

  • Beginning in January 2015, the city will make adjustments to get back into compliance.

The City of Mobile will pay for the first year premium increases for employees who make $40,000 or less to “give those employees the full realization of the two pay raises during the first year,” wrote Stimpson.

“We are having to make adjustments on healthcare to stay abreast with the market the city is not in a position to so something that not kinda of market driving. let’s say or comparable to other cities what businesses are doing so we for to get that in synch and we are not in synch right now”

Adjustments for new hires and retirees will be rolled out when the budget is presented to the City Council on Tuesday.

 

blog comments powered by Disqus