Palmer City Council gives a Christmas bonus and raise for city workers

Palmer’s city council gave a Christmas present and a “thank you” to city employees with a $1,000 bonus and a $1.50 per hour cost of living pay increase.

The raises reflect city leaders’ appreciation for good work during a stressful year of the COVID-19 pandemic and for staying put at a time when attractive pay in the nearby Anchorage municipal government is an attraction.

The $1.50-and-hour raise works out to about a 5 percent cost of living increase for employees in medium-pay ranges and about 2.5 percent for employee in higher ranges, Palmer city manager John Moosey told the city council at its Dec. 14 meeting.

Palmer does not have a policy for regular cost-of-living increases but does give merit increases.

The $1.50 per hour adjustment will really offset inflation in 2022, however. State economists are projecting 5 percent to 6 percent inflation increases next year.

Other Alaska local governments are giving bonuses to boost morale and retention. The Valdez School District gave teachers a year-end $1,500 bonus, Alaska Public Media reported.

Like many small municipalities Palmer faces challenges in recruiting and retaining experienced workers. The city has two vacancies in its police department to be filled, for example.

Outside of cities in the Mat-Su Borough there are only state troopers for law enforcement, and state trooper numbers are also stressed by recruiting issues. The borough considered assuming public protection a few years ago but balked at the estimated $50 million to $60 million annual cost of a borough-wide police department.

In other business at the mid-December meeting the council approved a new schedule for city fees for 2021 and a new schedule for fines. There was no opposing public comment on either measure and the vote was unanimous among council members in support of both. The city’s 2022 budget was also adopted by a unanimous vote.

The council also approved a $1.54 million increase in the city’s capita budget. A requirement is that 10 percent of city funds be set aside for capital needs, and money for the increase came from this reserve.

Meanwhile, supply chain issues are affecting some capital purchases. A new garbage truck ordered this year will not be delivered until next year, for example.

It wasn’t discussed in the council meeting but Gov. Mike Dunleavy’s proposed state budget for next year released Dec. 15 has two capital items important to Palmer.

One is a $6.5 million appropriation for an additional taxiway at Palmer’s city-owned airport. There is another $6.9 million allocated for continued improvements at Palmer’s wastewater treatment plant. The city is engaged in a long-term project to upgrade the plant so that it meets new federal wastewater discharge requirements.

Palmer already has about $12 million into the project so far and the state’s $6.9 million would continue that if it is approved by the Legislature.