The Lexington-Fayette Urban County Council has authorized several ordinances to retain and attract city employees, including increasing their minimum wage to $15, a six percent salary increase for non-sworn city employees, and a one-time bonus of $5,000 for all staff.
Approximately 1,861 employees qualify for the $5,000 bonus under federal coronavirus relief rules, including police, fire, social services, and waste management. A further 954 employees who do not meet the coronavirus relief standards will receive a $3,500 bonus. There is no salary limit for the one-time bonuses.
Chief Administrative Officer Sally Hamilton said that the city has struggled to maintain its city employees in the last few years. From July to October, the city tried to recruit for 80 positions – most of those positions received less than ten applicants. Around 45 percent received less than five. “We can’t afford not to do this,” Hamilton told the Lexington Herald-Leader.
Previously, potential applicants had scoffed at job listings. “Good luck with that hourly pay,” read a response to an online job listing. “This position will stay unfilled.”
These increases follow a previous three percent salary increase implemented on July 1. A second three percent increase will take effect on Jan. 1, according to Hamilton. On Oct. 14, the council set aside $15 million to account for upcoming hero pay under the American Rescue Plan Act.
The bonuses will cost the city $4.7 million, with the administration seeking an additional $2.6 million for the 954 employees receiving the $3,500 bonus. The city will also account for additional costs and fees, including additions to the pension system associated with the bonuses.
The council also agreed to hire a consultant to inspect the city’s pay grades by job and title. “We know we are way off in some of these,” Hamilton told the Herald-Leader.
The city has also added two new paid holidays: Juneteenth and Veterans Day.
Lexington finished its most recent fiscal year with a surplus of $28.1 million, which will account for the costs of the bonuses.
