Message from Mayor Kelson Elam | September 29, 2018
While technology and social media put so much information in front of us daily, I still believe in going straight to the original source for the facts about something I care about. Unfortunately information posted on social media is often done out of emotion and with incorrect facts.
So, I open this message by inviting you to come straight to me or any member of the City Council whenever you have a question or concern about this great City we all care about and call home.
We are volunteer servants of this City, and take the privilege and responsibility of our leadership roles very seriously. You will find each of us eager to visit with you in person, by phone or email anytime.
So that being said, let’s address some misinformation and misunderstandings that went viral this past week. I want to give you the facts and also ensure you that my fellow Council members and I share your gratitude for every member of the Department of Public Safety and City Staff.
Our DPS officers are first responders who are triple certified as police officers, fire fighters and EMTs. This takes extensive training and dedication, and we back them 24/7 just as they are willing to put their life on the line for you 24/7. Our City staff is always there to support the needs of the citizens.
Facts about the City Budget
At the September 25 meeting, the City Council adopted a budget for FY 2018-2019 based upon a tax rate of $0.389105, lower than the effective tax rate of $0.390761, and lower than last year’s tax rate of $0.417311. This is the first time the City’s tax rate has been at or below the effective rate in five years.
The budget funds two additional Public Safety Officers; one additional School Resource Officer (partially funded by the Rockwall ISD); and two additional Public Safety vehicles with equipment.
The effective tax rate is a property tax rate that provides the same amount of revenue from property taxes as the previous year. Increases in the City budget come from revenue generated by new commercial and residential taxes. The City of Heath’s FY 2018-2019 budget is based on a tax rate that is lower than the effective rate that could be levied. Simply put: home values have gone up overall; but City of Heath taxes have not.
So how was the effective tax rate achieved? Savings identified by Council and staff included, but were not limited to:
- Reducing Municipal Court costs
- Reducing Council/Staff Travel budget
- Moving the IT infrastructure to the Cloud
- Eliminated an underutilized $7500 annual gym membership for 30 people
What Council did not change:
- City Staff vacation
- City Staff benefits
- City Staff Retirement plan
More Facts about Employee Benefits
Employee benefits are one of the toughest issues we face, and we know our actions have a direct impact on the DPS officers, City staff members and their families. No decision is taken lightly as we deal with the enormous increases in healthcare coverage costs that you are probably facing in your family and your business.
Along with the salaries for two new officers and a school officer the Heath DPS will retain its longevity pay as required by state law. The City is moving from a “Step” based pay system which has never been properly implemented to a “Merit” based pay system. The Chief of Police and each Department Director will have control over how the merit pay is distributed. They know best who works the hardest.
The City currently offers only one “rich” healthcare plan to its employees, which pays 100% of the employee’s premiums and 80% of the premiums for their family members. This worked before the era of the affordable care act, but rising costs have forced all cities (and businesses) to make changes. Heath did not adjust when others did, and we now have an unsustainable burden of benefits and family subsidies.
To alleviate this problem, we interviewed five new insurance brokers and selected one that represents many of the cities in the Dallas area. In the next few weeks, we will be enhancing the benefit package to offer three plans that allow employees more control in choosing coverage and savings plans that best meets their family’s needs.
The savings from the change in health plans will be used to fund the merit raises and bonuses and to help offset any new employee healthcare coverage costs where possible. The amount of savings will not be known until the new benefits package is in effect the end of this year. At that time, salaries and bonuses will be adjusted.
In 2016, the City council (of which only one member is left) voted to eliminate the 90-day accrued sick leave payment for staff leaving the City. The change was never made to the employee manual, and the policy never enforced. Also during that time frame, City staff in conjunction with the fire and police, changed the method for accruing vacation. At the initial staff meeting this past week, the City manager announced the sick leave policy would be enforced going forward and the City would return to the original accrual method for vacation.
Staff was taken by surprise when this was announced and when brought to my attention, I agreed to have both items reviewed by the Council at the next meeting. No changes have been put into effect at this time.
I have met with the Heath Police and Fire Association representatives as well as City staff during the past two days, and we are working together to make all of this come together. Change is always hard, but it is necessary to the health of the City and its employees. We will do everything possible to manage this change effectively going forward.
To stay fiscally responsive, we will be reviewing and adjusting the City’s budget on a quarterly basis to stay on track. This will increase our work and the staff’s work, but I believe the time invested to remain responsive to any changes that occur throughout the year is worth the effort.
Budget discussions have been and will continue to be held in open City Council meetings, which residents are encouraged to attend and participate in any of the required Public Hearings. You can view the budget at www.heathtx.com under the Finance Department.
I hope this gives you a clearer understanding of what’s going at City Hall, your City Hall. Again, when you have a question or concern, contact your City leadership first. You can reach me at kelam@heathtx.com or 972-961-4889. I am honored to serve as your Mayor, and I will always welcome the opportunity to connect with you.
