Changes to Alexander employee handbook pass on second try

Mayor pension ordinance discussed

One month after failing in a tied vote, an ordinance amending the retirement section of the City of Alexander's employee handbook passed five to three. A second ordinance establishing a pension for former mayors was discussed but did not come up for a vote.

The changes to the handbook were made to solve two legal problems. The employee handbook includes "elected officials" as city employees. According to the Arkansas Municipal League (AML) elected officials aren't considered city employees. It's also been learned that state law has made city-run retirement plans illegal since July 3, 1989. The handbook has been in effect since January 1, 2006.

The ordinance removes any reference to an "elected official" being a city employee. It also deletes both the "Eligibility" and "Retirement" sub-headings from page 29, which provides a pension to anyone working for the city 12 years or more.

City aldermen plan to review, rewrite and update the entire handbook but these changes were seen as necessary as a first step in ending pension payments to former Mayor Shirley Johnson. Johnson tried to collect a pension from the city in early 2011, after losing re-election in November 2010, based on the pension plan described in the employee handbook. When aldermen at the time were told by AML elected officials aren't city employees her request was denied.

After some changes in membership on the city council Johnson was granted an $800 monthly pension under a motion passed in 2012. Current aldermen Farren Wadley and Samuel Gregory are the only remaining members of the 2012 council. A resolution ending that pension is still tabled for future discussion.

Voting for the changes to the employee handbook were aldermen Andrea Bearden, Juanita Wilson, Farren Wadley, Faye McKeon, and Lonny Chapman. Samuel Gregory was the only alderman present who voted against the changes. Alderman Ceola Bailey was absent and the Ward-2 Position-1 seat is vacant making those two positions "No" votes.

A new ordinance being proposed as a legal way to provide former mayors a pension may only apply to future mayors; but not Johnson. During the discussion Alderman Faye McKeon pointed out that former Mayor Johnson wouldn't qualify under the ordinance.

If passed the ordinance will, "provide a retirement benefit to any former mayor who has retired and meets the qualifications set forth in Ark. Code Ann. § 24-12-124."

The law states, "A person who has served as mayor of a city of the second class for at least twenty (20) years may retire at any age, and a person who has served as a mayor of a city of the second class for at least sixteen (16) years may retire upon reaching sixty-five (65) years of age."

The proposed ordinance also sets the amount of payment as, "equal to one-half of the former mayor's salary" beginning one month after "the effective date of his or her retirement."

McKeon pointed out that Johnson wouldn't have enough years to qualify since Alexander has been a city of the second class only since 1996. When Johnson's 20-year run as mayor ended December 31, 2010 Alexander had been a class-two city for 14 years; two years less than the required 16-year minimum. A motion was never made on the ordinance.

Johnson lost re-election to Paul Mitchell. Mitchell lost a recall election in 2012.

In other action at the Monday, September 15 meeting:

Vacant council seat not filled

Since no resumes have been received, no action was taken to appoint someone to fill the vacant Ward-2 Position-1 seat. The position was declared vacant by council members at the August meeting due to the resignation of Alderman Brad Scott.

Three Ward-2 residents have submitted petitions to appear on the November ballot. Ward-2 residents Stephanie Beck and Kenneth D. Miller have filed for the Ward-2 Position-1 seat. Andy Mullins is running for the Ward-2 Position-2 spot currently held by Juanita Wilson. Miller attended the council meeting and said he would submit a resume.

Resumes are still being accepted. To qualify you must be a registered voter and live in Ward-2. Resumes must be submitted at city hall.

After-school program

The city council approved allowing the ABC Adolescent Center to use the Alexander Community Center (old city hall) at no charge for its after-school program. The program will provide Alexander children with meals and help them with their homework Monday through Friday. ABC Adolescent Center is working with five local churches and the Department of Human Services to provide the food and volunteers.

A matching program has already been started in south Alexander. ABC Adolescent Center is using the Spanish Mission at the intersection of South Alexander Road (end of Hwy. 111) and West Azalea.

Transferring funds

The council voted to transfer $5,826.27 from the "vehicle purchase" line item in the police budget to several other line items that have fallen in the red. Adjustments in the police budget were needed due to several expenditures approved by the council during the past few months including repairs to police cars.

Sales tax revenue dropping

Alderman Andrea Bearden reported sales tax revenue provided by the state will be reduced next year. She attended a seminar conducted by the Arkansas Municipal League and was told the sales tax will drop from the current $16.10 per city resident to an estimated $14.90 starting January 1, 2015. This revenue source supports the city's general fund.