Retirement plans added to Alexander’s arsenal of employment enticements

The Alexander City Council approved two ordinances that will allow city employees access to one of two retirement systems. Members of the police and fire departments will be able to join the Arkansas Local Police and Fire Retirement System, known as LOPFI. Remaining employees will be able to join the Arkansas Public Employees Retirement System, or APERS. The ordinances were approved during the council’s regular June 18 meeting.

Mayor Paul Mitchell said, “This is the other piece of the puzzle,” referring to bringing Alexander up to par with other surrounding cities in the way of benefits and being able to attract and keep good employees. The other pieces of the puzzle, provided during the past three years, include offering health, dental and vision insurance plus increasing salaries.

Both retirement plans require the employee and city to pay into the system. Mitchell said the estimate of the city’s share in LOPFI is about $35,000 annually. While he didn’t have an exact number for APERS he said, “It’s about half,” of LOPFI.

Mitchell said the city’s share for the two plans will be paid for with the new one-cent sales tax passed by voters in November, 2017. Collection of the tax was to begin April 1 of this year but Alexander still hasn’t received any payments from the state treasurer’s office.

In other action during the June 18 meeting;

Council members approved the purchase of three new police vehicles. Police Chief Robert Burnett explained that one new police car is needed because it’s been running 24/7 since another car was totaled in an accident. The car was still considered new so it will be completely replaced by the insurance at no cost to the city. The car that’s been doing the work of two vehicles will be moved down the fleet to be used on a less strenuous schedule. The other two vehicles to be purchased is a pickup truck for the assistant chief, matching the chief’s pickup, and an SUV for the code enforcement officer. All vehicles are manufactured by Dodge.

The new police car will cost $21,500, which Burnett said is $1,000 less than the price of the totaled car when it was purchased in 2016. The price of the pickup and SUV is $25,504 each. After including the cost of lights, a roll cage for the car, radios, etc.; council members appropriated a total of $135,000.

Mayor Mitchell said this will be a “cash” purchase mostly covered by the general fund, which owes the police fund around $90,000. In 2013 about $45,000 in sales tax revenue was not transferred from the general fund to the police fund. Mitchell said the court also owes the police department around $45,000, which must also come from the general fund.

Street Department Superintendent David Durham was given permission by the city council to purchase a three-quarter ton Dodge crew-cab pickup for $27,200. The council appropriated $30,000 to include lights, decals and other accessories. Mayor Mitchell said the truck will be used to plow snow and to tow trailers carrying the department’s track-hoe and tractor. Also, the crew-cab will be needed when the city gets permission to use prisoner labor. Police Chief Burnett said he discovered the pickup when he was pricing vehicles at Landers Dodge. It was ordered by the Clinton Airport but after it arrived the order was canceled.

Council members approved two budget transactions made in December, 2017. According to a report given by Bookkeeper and Interim Treasurer JoAn Churchill the city had two financial problems last December involving paying employees. One required resetting the bi-weekly pay-period so employees are now paid for the two weeks they worked prior to the week they are paid. The other required helping the fire department fund with a $15,000 “buyout.”

Churchill said in the past time cards were turned-in on the Wednesday of the second week of the pay-period and the employees were paid on that Friday. Because the pay-week was Sunday to Saturday employees were being paid for hours on Friday and Saturday they had not yet worked. That put the city in non-compliance with state law. To make this adjustment Churchill explained in an E-mail it was decided to move, “Forward one week,” and use a combination of regular pay with unused vacation time to cover the next three weeks.

“They had a regular paycheck, then 2 weeks later had a vacation check, and one week late a regular pay check,” she wrote in the E-mail.

The other issue involved the fire department fund not having enough revenue to cover the extra week and still maintain all of their other financial responsibilities. Churchill said $15,000 was transferred from the general fund to the fire department fund to cover the shortfall.

Her reason for requesting the approval now is because she is unable to find the discussion and approval in minutes from September to December. The state has started its annual audit of the city for 2017 and will require the documentation.

“I remember discussing this with you (council),” and getting approval, she said.

Council members approved the plan to adjust the pay schedule and to allow the fire department fund to retain the $15,000 transferred from the general fund. Churchill said this will ease the financial strain currently being placed on the department and its staff.

Fire Chief Mark Ridgeway reported that Alexander Fire Fighter Brad Noblett (Class 2018-C) has completed the state’s fire fighter certification program. This makes three fire fighters this year to be certified. The other two are Justin Potter (Class 2018-A) and Chase Collins (Class 2018-B).

The next regular meeting of the Alexander City Council is Monday, July 16. Meetings start at 6 PM and are held in the courtroom at the City of Alexander City Hall. The public is invited to attend.