Asheville Council Considers Pay Raises for City Staff Amid Living Wage Advocacy

Asheville Council Considers Pay Raises for City Staff Amid Living Wage Advocacy

City Council in Asheville is currently deliberating pay raises for its employees, with discussions centering around the possibility of matching the living wage rate of $22.10 an hour advocated by local groups. The proposal put forth by staff recommends a 4.11% increase in pay for all city workers, with the aim of bringing the lowest-paid employees up to the WNC Just Economics “pledged” living wage of $19 an hour.

Concerns Over Using Fund Balance

Following a recent work session on April 9, there was no clear consensus reached by the council members, but there were discussions about further engagement with City Manager Debra Campbell, who is set to present her proposed budget on May 14. One point of contention during the deliberations was the suggestion to draw from the city’s fund balance to finance the pay raises, a move that prompted some unease among council members.

The Dilemma of Fund Balance Use

The Mayor, Esther Manheimer, expressed concerns about utilizing the fund balance for recurring expenses, citing the general principle that advises against such practices. The city’s current policy dictates maintaining an annual fund balance of 15% of its expenditures, a benchmark that has been consistently upheld since 2011. However, dipping into the fund balance has been deemed necessary in light of revenue growth slowing down and costs escalating, making it challenging to fund new initiatives.

Staff’s Compensation Proposal

Last year, council approved pay raises averaging 5% for around 1,200 city employees, except for police officers who received a 6% increase. This decision, aimed at addressing recruitment challenges within the police department, inadvertently led to morale issues among other employees due to the differential pay scales. For the upcoming fiscal year, city staff has recommended a 4.11% pay raise for all employees, amounting to approximately $4.3 million.

Aiming for Living Wage

The proposed increase is intended to bring the lowest-paid workers to a minimum of $19 an hour, although it falls short of the full living wage rate of $22.10. Just Economics, a local nonprofit, annually recalculates the living wage rate for Buncombe County based on Fair Market Rents, setting both the living wage and a “pledged” rate that includes incremental wage raises until the living wage level is met.

Budget Priorities Petition

Nine civic and nonprofit organizations recently released a petition urging the council to adopt specific budget priorities, including meeting the living wage, implementing recommendations from the Community Reparations Commission, establishing emergency rental assistance programs, and allocating resources for participatory budgeting.

Contemplating Funding Sources

Aside from the fund balance, council members discussed the possibility of a property tax increase to generate additional revenue. However, various factors, such as recent fee hikes and the impending General Obligation Bond, have led to reservations about implementing a tax increase in the immediate future. There is also consideration of exploring a Business Improvement District that would impose a special tax on downtown property owners to finance enhancement projects.