Greene Helps Make Town Staff 4% Pay Raise A Reality, Ignoring Financial Warnings...Failing To Participate In Discussion

Town Staff Gets Big Pay Increase 
This year’s budget includes a whopping 4% increase across the board for all employees. That’s the highest level ever given, in a year in which the council was warned that revenues are going to be tight in the future. 

Greene, Joyce-Ivey, Solomon and Winfield supported big increase
That increase was explicitly approved by a slim council majority at the June 19 council meeting, a meeting in which the council approved the $151.2 million fiscal 2025 Budget. Vice-Mayor Barrett had argued in favor of the historical 3% increase.  Council Members Bohen and Nicolson voiced their support for that.

Town “Spreads the Peanut Butter” when it comes to pay raises... No performance based awards...No incentive to get better
When it comes to staff pay raises, Oro Valley spreads the peanut butter! Everybody gets the same percent increase regardless of their performance. 

This contrasts with private sector practice where, as noted by Vice Mayor Barrett and Council Member Bohen, employees are paid based on their performance. As Council Member Nicolson noted at that meeting, who works in the public sector under the across-the-board pay philosophy: “I get the same raises, still same pay, not really a whole lot of incentive to improve.”

Barrett: Individual performance should be individually awarded
“I think it’s important to have some performance-based measures because I think that helps encourage our good employees, and we can help identify the employees that are most likely flight risks. That’s something that’s done regularly throughout all of the private sector and efficient places in other sectors as well,” said Vice Mayor Barrett.

Votava: No. That might make some people unhappy
Town Human Resource Director Andy Votava does not think that is a good idea: “So, in my mind, I don’t think we’re well-equipped to implement a pay-for-performance system because the danger or the hazard is that if we don’t do it well, some employees may take issue with that. Potentially, anybody can file a lawsuit, but it could lead to complaints.” 

Greene supported this massive increase in spending though he failed to even participate in the discussion

Mo Greene, who is running for reelection, claims to be fiscally responsible. However, his actions, including his decision to support this 4% across-the-board pay raise despite looming financial constraints, demonstrate the opposite. He was so disinterested in the conversation on the pay increase that he did not participate in it. Not one word!

Indeed, Greene's disregard for fiscal responsibility was evident when, at the Sun City forum, he was asked how he would demonstrate fiscal responsibility. He merely echoed Council Member Solomon's statement in a May council meeting: "We need to separate our wants from our needs." Greene then referenced something he did 20 years ago while working the New England Journal of Medicine, without citing any actions he has taken on the council in the past four years. That's because there were no examples to cite. 

Next Tuesday's election is a clear opportunity for voters to hold him accountable for his demonstrated lack of fiscal responsibility. 

- - -

(Source: June 19, 2024 Oro Valley Town Council Meeting, Item 5)

Bits and Pieces

Greene is a “rubber stamp” kind of guy
Council Member Mo Greene said that land use decisions are above his pay grade. He was charged with the task of deciding whether the land use of the Kai-Capri property should changed from commercial to residential at last week’s council meeting. 

Greene said that he has not gone over the land use. He has listened to the presentation of people who are much smarter [than he is] in land use and the needs of Oro Valley so he is going to approve the land use change. 

It’s going to be a long four years with this guy on council. 

Town employees (including cops) gets pay raise

Also at last week’s council meeting, the town council unanimously approved a 3% pay increase for all employees. This is a reinstatement of the annual wage increase the town deferred in June because of financial uncertainty caused by the pandemic. Town Manager Jacobs told the council that the town can afford it and that, because there are vacant positions, the increase will have no impact on the budget for the year. The increase takes effect this month. It does not include council members. The town manager will recommend another 3% increase starting in July.

Abraham: Reclaimed water rate should provide incentive for use... that is current town policy

The town's reclaimed water rate is based on the cost of providing reclaimed water. However, the cost does not include 79% of the debt service cost incurred in building the reclaimed water system. According to town water Director Peter Abraham, reclaimed water would be more expensive than potable water if the the total debt service were included in the reclaimed water rate. This would provide a disincentive if the were set at this level. Town policy is to set the reclaimed water rate at the cost of service, but not more than the potable rate. Town staff and the towns' water commission are recommending to council that this policy remain.

FYI: Reclaimed water us is about 2,000 acre feet per year. The town buys reclaimed water from the Tucson.,The town is currently using all of its reclaimed water entitlement though "...we lost eight holes of golf".

(Source), 57 minutes)

Oro Valley's Employee Compensation Seems "In Line" With Comparable Communities

---
Last week, Oro Valley issued a press release announcing an employee compensation study of Oro Valley employees. Oro Valley will pay $30,000 for this study.

The objective of this study is to determine if the wages and benefits paid Oro Valley employees are competitive.   The town will contract for the study within the next 12 weeks, targeting completion in the fall. (Source)  The Daily Star has already concluded that Oro Valley pays more than Marana for comparable top level jobs. (view Marana's Classified Salary Schedule)

We compared randomly selected earnings for higher level Oro Valley employees to those in the the Town of Sahuarita.  We found that Oro Valley salaries are about the same as that town. For example:

• The average police sergeant in Sahuarita earns $81,318.  In 2012, the average earnings of and Oro Valley police sergeant was $81,752. (The highest grade wage level for a police sergeant in Marana is $72,551.) 
• Oro Valley police officers were paid an average of $53,405  in 2012.  This places Oro Valley at the higher end of the Marana salary scale for this position and in the low-mid range of the Sahuarita salary range for the same position.

So, on the surface, Oro Valley upper level earnings seem comparable, if not a bit greater than, two sister communities: Marana and Sahuarita.

The Oro Valley compensation study will also include an analysis of fringe benefits paid.  Oro Valley, for example, pays all of the employee's medical premium.   This is a significant benefit.  This is rare in the private sector.  It is more common in the public sector.  These benefit policies could vary among cities and towns.

Another fringe benefit, in the case of the police department, is the value of the take home cars that most Oro Valley officers have.  The value of this fringe benefit in gas saving alone could be $300, even for a short commute.  Any compensation study must include a comparison of this policy and its value to the employee.

We know that there are some who will argue that take home cars are not a fringe benefit. They are required as part of the job.  We also understand that the IRS does not consider them a taxable fringe benefit.  However, it does have value to the employee because it eliminates their commuting costs.  Also, we know, because we have been sent pictures (which we have chosen not to publish) that these cars are used for personal use.
---
We thought it would be useful, as a backdrop, to provide you with Oro Valley salaries and wages stand today.

Overview

Click To Enlarge

Oro Valley paid more than $17.3 million in wages to 440 employees in 2012 (Source).

71% of this is paid to employees in 3 departments: Police (42%), DIS (18%) and Water (11%).  53% of the personnel are employed in these 3 departments.  This means that the average wage per employee in these departments is greater than that of other departments.   This could be for a number of reasons. For example, there may be more part-time employees in other departments, thus reducing the average wages for this department; or, the people in those departments may be paid less for comparable jobs.

The Big Earners

Click To Enlarge

10% of the total spend went to 14 people, all of whom earned more than $100,000:

• $476,854 to 4 police department employees
• $342,764 to 3 in the legal/magistrate area
• $231,447 to 2 in DIS
• $265,579 to 2 in Town Management/Finance: 
• $244,740 to 2 in the Water Department:
• $111,076 to 1 in Parks and Recreation

The Next Tier

34 people, or 8% of employees earned from $80,000 to $99,000.  Their wages total almost $3 million.  82% of these wage earners work in 3 departments: Police (18%), DIS (16%) and water (8%).

Click To Enlarge

The Rest
The remaining  393 or 89% of all employees earned a total of $12,624,805, 73% of all wages paid.

70% of the wages in this last tier, the bulk of those employed by the town, were employed in the three largest departments.

---
Conclusions
Wages are determined by the market and by the skill levels required of a specific job. Therefore, it is not possible to reliably compare individual salaries across departments.  Generally, senior law enforcement, legal, and engineering personnel command a higher wage than positions that require lower levels of expertise.  Oro Valley's wage numbers illustrate this.

How these numbers compare to what other cities and towns pay will be the focus of the Oro Valley compensation study.  Our preliminary study says that Oro Valley wages, at least at higher wage jobs, are at least equal to if not greater than two comparable local communities.
---

Bits and Pieces

---
What's a fast pool?

Its a pool where the fluid dynamics of the pool are such that water flow results in the least water resistance to swimmers.  Less water resistance means faster swim times in meets.

The Oro Valley Aquatic Center pool is, we've been told, the 2nd fastest pool is the state. The fastest pool is the ASU pool.

Here's two reasons why the Oro Valley Aquatic Center Pool is less water resistant. First, the lane markers are less water resistant than other types. Second, the design of the pool is such that water flows over the walls of the pool, into an overflow, and not against the poll wall, where the water would bounce back against the swimmer.
---
"In an effort to be proactive in the recruitment and retention of highly-qualified employees, the Oro Valley Town Council recently approved $30,000 for an employee salary market study in its FY 2013-14 budget. The idea to fund a market study was initially laid out in the Council-approved 2013 Strategic Plan, which guides decision-making and resource management in pursuit of organizational goals over the next two to five years.

"Oro Valley's 2013 Strategic Plan, which was approved in January 2013, establishes the goal of attracting, engaging and retaining highly-qualified employees, which would be achieved by conducting "a market study of the Town's benchmark classifi­cations and make necessary pay grade adjustments as needed and based on ­fiscal resources."(Source: Oro Valley Press Release)
---
June's month's Oro Valley crime statistics are available online.  Top crime by far: Larceny.
---
One of our readers asked us what is being built on the northwest corner of LaCanada and Naranja.  We didn't know so we asked the town.  We learned that the owner received a grading permit for the property. We also learned that owner has not submitted any plans for construction on the site.  The property is zoned: "Commercial." It was considered, at one time, as a location for Golder Ranch Fire District.
---