Alexander council votes to save $9,000 annually

The Alexander City Council approved a resolution to end its relationship with Paychex on December 31, 2017. The resolution also authorizes contracting with Proliant, Inc. for payroll processing services beginning January 1, 2018.

The city hired Paychex in 2013 when Michelle Hobbs was mayor. Paychex has been processing the city’s payroll, which included determining and deducting payroll taxes, transferring the taxes to a special account and either printing checks or doing a direct deposit to an employee’s bank account. Since then issues about what Paychex can’t do, while costing the city around $12,000 per year, have ruffled some feathers at city hall.

As was learned at the council’s Monday, October 16 meeting one major issue has been Paychex’s inability to split payroll for street department employees when they work at the city park. Currently the street department staff does double-duty maintaining the city park. Because tax revenue from the state for the street fund can only be spent on streets and a portion of a city one-cent sales tax dedicated to parks and recreation can only be spent on parks and recreation, the hours worked by street department staff must be split depending on the number of hours worked between the street department and parks and recreation.

Proliant representative Kristy Hassman told council members, “The street (department) needs to pay the taxes when they (employees) work in the street department, parks (department) needs to pay it (taxes) when they work in parks; and Paychex couldn’t do that.”

Hassman said Proliant will set up separate accounts, “So those taxes can follow those wages.”

Another issue has been the printing of payroll checks. While many city employees have direct deposit there are some who are paid by a paper check. After the checks are printed by Paychex they are shipped to Alexander City Hall. If there are any errors the incorrect checks must be reprinted and shipped again. For the one-time cost of a $250 check printer, set up in City Hall, Proliant will print the checks directly to the printer eliminating the cost of shipping. The council also approved purchasing the printer and special anti-fraud check ink.

Proliant submitted a quote of $3,000 for one year of services. That will save the City about $9,000 per year. Proliant has been in business for about 20 years with headquarters in Atlanta and has an office in Little Rock.

In other action taken by the Alexander City Council;

Aldermen approved the Hazard Mitigation Plan submitted by Saline County. The 94-page, county-wide plan is required by the Federal Emergency Management Agency and covers a range of emergency preparedness. A portion of the plan covers items like providing safe-rooms in existing and new public buildings and having an emergency generator system for fire and police departments.

It also covers areas that have flooding problems. The only mention of the City of Alexander is the flooding along Brookwood Road near Crooked Creek. The solution, according to the plan, is to, “raise” Brookwood Road.

Council members approved a resolution amending the current 2017 budget. Mayor Paul Mitchell told council members the amended budget includes the various new spending the council has approved throughout the year. Bookkeeper JoAn Churchill said there should be one more amended budget in December to close out the year.

The next regular meeting of the Alexander City Council is Monday, November 20. Meetings start at 6 PM and are held in the courtroom at the Alexander City Hall. The public is invited to attend.