City workers receive premium pay for past year

All city employees who worked between March 2021 and March 2022 will receive an additional check thanks to federal money provided to the city as part of the American Rescue Plan Act of 2021 (also called the covid-19 stimulus package).

The council authorized $409,100.57 to “provide Premium Pay to eligible workers and to provide for requisite employer contributions,” according to Resolution 478.

That amount was more than discussed at the Council Committee of the Whole meeting, which was $250,000, and elicited questions from council members.

“Everyone gets same amount, but checks look different because of deductions,” City Clerk Sandy Button said, when handing a list of employee payments to council members.

“Everyone who worked an hour exposed themselves to the risk,” city attorney Shane Perry said. “The sentiment was that it would be a net number … for each employee to net $3 … but it would have to be $4.50 to net $3. No one gets more for the risk.”

Perry said that of the $1.2 million received by the city in ARPA funds, 32.5% of the money was being allocated for premium pay.

“Our people are the ones who took the risk. To me, this is an appropriate use of the money,” Perry said.

“It’s what the money was meant for. Our folks are the most important piece of this,” Mayor Jackie Crabtree said.

During the City Council Committee of the Whole meeting to discuss the options, council member Steve Guthrie said: “That’s a pretty nice bonus.”

The mayor said federal regulations set limitations on the premium pay that can not be paid for hours working from home, quarantine, sick, holiday or overtime pay.

“It does not differentiate between anybody,” Crabtree said. “If you were here and worked, you will get premium pay.”

Council members, following Crabtree’s recommendation, agreed to $3 per hour per employee for a cost of around $200,000.

Button said the state allowed cities to pay up to $13 per hour.

At the City Council meeting, Button said: “There’s been a lot of work … taking out sick time … they put in a lot of hours to make it absolutely perfect.”

She commended the work of Starla Billington and Angie Jennings, bookkeepers for the city and the Water Utilities Department respectively. Button explained that the Arkansas Municipal League advised the city how to prepare the checks considering taxes.

During the council meeting, Perry had counseled: “We have to gross that number up to include our (the city’s) portion of FICA and the things we pay. So when we budget that, it won’t just be the $3, it will be the $3 plus.”

Checks to employees range from $151 (for a new employee) to $6,162, with an average of around $5,000. Four employees received checks less than $1,000; 11 received checks from $1,000 to $2,000; two received checks from $2,000 to $3,000; four received checks from $3,000 to $4,000; nine received checks from $4,000 to $5,000; 27 received checks from $5,000 to $6,000; and two received checks over $6,000.

The checks, which reflected a gross pay of $4.50 per hour, had all applicable taxes withheld. The total spent for city employees was $290,451.85 for city general and $80,875.16 for the Water Utilities employees. The city’s total share of employer taxes and contributions was $20,729.40 for the city and $6,200.47 for the Water Utilities Dept.

Crabtree said the premium pay does not add to the salary.

“It’s a one time for employees,” Button said. “It’s a huge morale booster. I’d like to see our employees get it.”

“At the end of the day, there were so many things shut down. These people were committed to this city and came to work and exposed themselves. That is what this money is for,” Perry said.

At the council meeting, council member Ginger Larsen expressed concern about the “last minute changes.”

“I know this wasn’t anyone’s fault … this wasn’t the resolution I looked at and reviewed. This was literally dropped here in our lap tonight. I don’t like that. That makes me super uncomfortable.”

She said she didn’t remember any discussion about taxes.

Council member Merrill White said: “Ideally, we’re not opposed to the thing for the city people. I definitely share in the idea of it. I don’t remember talking about the tax concept. In the future, if that becomes a discussion, we should probably know about that in advance.”

“My complaint was not with the dollar amount,” Larsen said. “It was not knowing about this until I got here.

The mayor said: “I’ll take the responsibility for not communicating that right.”

“It’s a huge morale booster.”

Sandy Button

City Clerk