NEW ALBANY —
Aside from the one percent longevity pay increases given to some public safety workers, the salaries requested by the administration for the New Albany City Council to set for 2011 were the same as the past three years.
But with a $1.8 million budget shortfall for this year still looming, the council defeated pay ordinances for union and non-union employees on first and second readings Thursday.
The establishment of a health savings account insurance option has been pushed by the administration as a means to balancing the general fund in two years, but Councilman Pat McLaughlin said there’s no way yet to tell if 75 percent of workers will participate in the plan for 2011 in order for the city to see the savings.
“I think at this point, getting the cart in front of the horse is a big gamble,” he said.
Though the salaries would remain frozen if the ordinances pass on third reading, Councilman Jeff Gahan warned the body it must assume it will have to appropriate more money from reserves to pay for the wages “because the general fund won’t cover it.”
Gahan and McLaughlin joined council members Dan Coffey, Bob Caesar, Steve Price, Diane McCartin-Benedetti and John Gonder in voting against the salary ordinance for union employees.
Councilman Jack Messer — an officer for the New Albany Police Department — abstained from voting on the union pay as it impacted public safety salaries.
Councilman Kevin Zurschmiede was absent from the meeting.
Messer did vote against the ordinance for non-union employees, which failed 7-1. Gonder was the lone yes vote, as he said those departments “are running flat” and not creating a budget shortfall like the public safety wings.
When asked by The Tribune for clarification, City Attorney Shane Gibson said he would need to research the state statutes to determine if the Board of Works and Public Safety can approve the salaries if the council fails to do so.
City Controller Kay Garry said the city could be looking at a general fund deficit of about $3 million if it doesn’t account for the $1.8 million shortfall and the public safety budgets surpass funding in 2011.
But Caesar vowed the council would mend the budget gap, and he promised the general fund deficit would taken care of by the time his term expires.
“When I walk out of here Dec. 31 [of] 2011, there will be a balanced budget,” he said.
Also at the meeting
• As a required public hearing was not advertised in time, the final vote on an appropriation to send $70,000 of Economic Development Income Tax money to One Southern Indiana was tabled.
Also tabled was the second reading on an ordinance to include a council member on the New Albany Historic Preservation Commission.
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