The city's nine executive directors won't be getting pay increases in 1992-93.
Instead, money that would have provided a 2.5 percent pay hike for the executive staff will be used to help pay for improvements on State Street.In addition, the City Council voted Tuesday to trim a pay hike proposed for other employees as part of the city's 1992-93 budget, from 2.5 percent to 2 percent.
City employees who packed the meeting were dismayed by the council's action.
"The executive staff in this city has done more for the development of this city than any damn politician," said Bob Moore, Orem senior planner, after the council decision.
City employees, not politicians, made Orem a city deserving of national recognition as the best place to live in America, he added.
Mayor Stella Welsh led a coalition of conservative council members in capping salaries for the city's top employees. The council members said the directors' salaries are out of line compared to economic standards in the city and what other employees earn.
"I feel at this point those salaries need to be frozen for this year," Welsh said.
Council members Kelvin Clayton, Chris Yandow and Judy Bell joined Welsh in a 4-3 vote to cut pay increases for administrators and reduce those of employees. Council members Steve Heinz, Keith Hunt and Jim Evans opposed the motion.
The council lined up similarly in a 4-3 vote adopting a $31.9 million budget for the coming year.
The nine directors affected by the pay freeze are: Daryl Berlin, city manager; Paul Johnson, city attorney; Ott Dameron, public works; Jerry Ortiz, recreation; Dick Beeson, library; Ed Stout, development services; Phil Goodrich, administrative services; Stewart Taylor, assistant city manager; and Ted Peacock, public safety. The directors' base salaries generally fall in the $50,000-to-$60,000 range.
Hunt in particular pleaded long and hard in favor of giving the executive staff a pay increase.
"Your motion seems to be freezing the salaries of the very people who make this system work," Hunt said. "I think this is very unfair to the key people who run this city."
City Manager Daryl Berlin also spoke strongly in favor of pay increases for top personnel. He had Personnel Director Peggy D'Avignon present a survey conducted last week of salaries paid to top employees in 14 similar-size cities in the Rocky Mountain region.
The survey, which included four other Utah cities, showed Orem's administrators at the middle to lower end of the pay range. Berlin also said salaries are in line in the Hays pay scale used by the city.
"You do not run an organization in the manner that this one is run without attracting top people," Berlin said. "You do not attract top
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people without looking at the broad market."
Without top talent, the quality of service in the city will suffer, Berlin said. He predicted that employees' productivity would drop if the council cut or reduced pay increases.
"Anything we do to get in the way of that (productivity) is a mistake," he said.
Some employees who spoke with the Deseret News on Tuesday took exception to comments that productivity would fall because of the council's action.
"I think even though it's not intended, it does send a message that will impact morale and motivation to some degree," said Jerry Ortiz, recreation director. But, "I think the staff will step up and do their jobs."
Library Director Dick Beeson said, "I'll work as hard as I ever have because I'm not driven by salary. I have a job to do at the library . . . and we're going to do it."
Public Safety Sgt. Guy Gustman was incensed that the council members who voted for the cuts waited to make their comments until after closing the public hearing, effectively shutting off debate from city employees.
Malcolm Nash, an employee in the Public Works Department, said: "This put employees on notice. This year, the executive staff. Next year, who knows?"