As election near, Commission Chairman Smith offers the ‘facts’

Fri, 07/11/2008 - 2:59pm
By: John Thompson

In an extraordinary move less than a week before the election, Fayette County Commission Chairman Jack Smith decided he could not sit on the sidelines any longer.

While Smith is not up for election this year, he rushed to the defense of his fellow commissioners late this week with a letter sent to The Citizen. Titled, “An Open Letter to the Citizens of Fayette County,” Smith offers a defense of some of the board’s controversial actions during the last 18 months.

Smith starts out the letter by offering a rationale for the timing of the document.

“Unfortunately, our current political climate mandates that something be said, and not meaning to disrespect my mom, the ‘truth’ needs to be told rather than the suppositions, personal opinion, idle rhetoric and, with all due respect, a total disregard for the time honored tradition of political discourse within the bounds of propriety,” he said.

Smith first addresses the recent $3 million in salary upgrades given to the county’s employees.

“Recent headlines would have you believe that County employees received huge pay increases. The facts are that employees overall did not receive huge pay increases. Employees making between $20,000 and $30,000 received the lion’s share of pay increases. Employees earning over $50,000 per year got an average of 1.5%. The Compensation and Classification Study conducted independently by the University of Georgia was the first such study conducted in more than 7 years, and the resulting increases will be implemented over a 3 year period. The vast majority of county employees will see their pay increase by less than 2 percent per year over this time period as a result of the pay study,” he said.

But former Commission Chairman Greg Dunn, who’s running against current Commissioner Robert Horgan can’t believe the county could give such raises in the tough economic times.

“Everybody else is cutting back, and we were doing fine giving our employees cost of living adjustments, which is something I fought for,” he said.

Smith also defended the recent vote of the Commission to offer a hybrid defined benefits retirement program for its employees.

“The FACT is that from 2000 thru 2006 employee turnover in Fayette County increased to 20% for the general work force and approached 30% for public safety employees. The reason cited by the vast majority of employees for leaving Fayette County was, ‘Fayette County is not competitive with surrounding jurisdictions.’ You probably did not know that the majority of our work force resides outside of Fayette County. The FACT is that due to this Board’s actions over the last 18 months, our turnover rate has decreased dramatically from its all time high in 2006 to its current level of 3.8%, saving the taxpayers millions of dollars in training and recruiting costs. The FACT is that the proposed retirement plan currently under consideration by the Board will result in annual savings to the County of approximately $550,000 per year, provide a better retirement plan than the one currently in place and both can be accomplished with a risk factor of minimal proportion,” Smith said.

But Dunn said the rest of the country is abandoning defined benefits plan because of the liability.

“In 2003, Henry County started their plan using the same company that Fayette County is using. They had a $2 million surplus in the fund in 2003, but this year have a $28 million unfunded liability.

Smith also took aim at those who say the county is acting fiscally irresponsible.

“The county will not increase taxes this year, unlike many other jurisdictions; yet at the same time we will be able to maintain current service levels and have reduced the Fiscal Year 2009 budget by over 6 percent, representing a reduction in spending of approximately $4.8 million – after implementation of salary increases. One should ask how is it possible to decrease the budget, maintain current service levels and not increase taxes given the current economy, rising fuel prices and increases in other operating expenses,” Smith said.

Dunn said the reason the county’s budget is lower this year lies in the capital outlays that the county chose not to fund this year.

Smith said the board saved money by not filling 23 positions this year and saved $1,200,000.

“We hired in-house legal counsel, and that alone has saved $400,000 in legal expense during its first year. We bid out insurance contracts rather than using a previously used intermediary, resulting in savings of approximately $900,000. We invested in sorely needed technology improvements, saving in excess of $100,000 in personnel costs,” he added.

But Dunn pointed out that those 23 positions will have to be filled at some point and the additional $1.2 million in salaries, along with $800,000 more in salary increases next year could create big headaches during next year’s budget cycle.

He also said the county is running up additional legal bills by farming out much of the county’s legal business because the in-house attorney does not have the experience of the former attorney.

Smith closed his letter by urging voters to look at the motivations behind some of the attacks.

“Those who profess that the state of the county is in shambles are nothing more than political fear-mongers making a feeble attempt to regain their lost power and influence by using distortions of facts, innuendoes and rhetoric to create a false sense on insecurity in those they prey upon.”

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Submitted by doright on Mon, 07/14/2008 - 7:05am.

I think what is an embarrassment is that county employees get less than a 2% pay raise. These people work hard can we not pay them a bit more. And to have employees who get paid so little they can not even live on it. Come on Fayette! You can't live on $20,000 a year so why would you expect your county employee to.

If we need to up the qualifications for positions, lets do it but pay people a fair wage.

Submitted by heisman1226 on Mon, 07/14/2008 - 9:13pm.

Ive seen all the leaflets and literature come through here lately and it is rather aggravating to read and be silent. Especially when Bost decides to weigh in on the "fiscal responsibility" of the commission with aid from Mr Dunn. And by the way, before Harold Bost starts talking about fiscal conservancy, somebody tell him to pay us back the 13 or so thousand it cost the county to hold a special election because he decided he dint want the job after all. Mainly, however, I'm sick of the one liners Ive seen in all the Dunn campaign literature. There are some issues I can address and I will.

Dunn:County employees got double digit increases in salary in addition to merit and COLA raises.

Fact: County employees did not receive a COLA or merit increase in 2007 OR 2008. If county employees had received the cola, their raises would have been more than they got with the study.

Fact: Here's an example of the double digits. Part -time employees over at the extension and other services went from around 6.25 per hour to 7.50. That is your 16% that was quoted.

Fact: After the full implementation of the pay raises which are scheduled to be complete with a final installment in July 09, employees will finally be making the market average for 2007 when the study was completed. 2 years wage earnings behind all of the contemporaries that were surveyed.

Dunn: We lowered millage rates the whole time we were in office thereby bringing financial stability to the county.

Fact: Dunn and his commission DID reduce the millage. However they did this at a time of relative prosperity bleeding reserve and capital project accounts down. Maybe they should have left the rate alone and banked the funding for leaner times. As it stands now, the county is struggling to further lean the budget. The citizens do not still have the millage refunds and neither does the county. This appears to be rather short sighted financial management.

Dunn: “In 2003, Henry County started their plan using the same company that Fayette County is using. They had a $2 million surplus in the fund in 2003, but this year have a $28 million unfunded liability.

Fact: Fayette County does not currently have a defined benefit plan. I also called Henry County finance. They said that there was an 18 million dollar initial unfunded liability due to the fact that Henry County allowed the employees to automatically claim their employment tenure. Fayette's proposed plan will require employees to buy back years of service thereby negating the same liability. Currently, Henry County states that their unfunded liability is flat, or, near zero.

Submitted by sageadvice on Mon, 07/14/2008 - 8:17am.

Maybe some do need a rise---not all.

Can we first see how much the top 1/3 are paid, then the middle 1/3, and finally the bottom 1/3?

People are sick of some assistants making $70-100,000 dollars per year I don't care if they were hired by Noah!

And, who makes $20,000? (that is $10.00 per hour!
Remember health insurance now cost $14,000 per family! I don't know what pensions cost.

Also, maybe we don't need half of them, who knows?
Government is NOT a job Fair.

.

Paul Perkins's picture
Submitted by Paul Perkins on Mon, 07/14/2008 - 7:54am.

Anyone who owns a business knows that some of the most expensive costs relate to high employee turnover.

Under Dunn/Wells/Peter, the turnover rate was about 19% (up to 30% in EMS-not a comforting thought when you need an ambulance).

It has dropped to a present level of about 3%.

This is the way to blog!


Peter Pfeifer's picture
Submitted by Peter Pfeifer on Sat, 07/12/2008 - 4:29pm.

I’ve seen the recent letter from Commissioner Jack Smith “explaining the truth”. I’m not sure how many of you read through the entire letter and I don’t know how interested you are in all this.

What he says sounds pretty reasonable, doesn’t it? If you are tempted to believe his letter and you want to know more, read on. If not, then skip this whole thing!

I’m just going to refute a couple of the new items in this email, and only the short ones. For the rest, see my website at www.peterpfeifer.com.

I hope that no one believes that I have a personal animosity towards Commissioner Smith, nor any other Commissioner. I just have sincere and deep disagreements with how they govern.

And, I’m sorry, as I said previously; there are a lot of “Late” things coming out just before the election.

A general observation. His letter is an example of “Nanny State Paternalism”. You know; “we know what’s best for you” or how about “we just need to get smarter people (or “good people”) in government who can tell you what to do”.

The Personnel Issue - Raises & Defined Benefit (DB) Plan: Commissioner Smith claims that the employee turnover rate had been too high, and now it is reduced. Well, the combination of a bad economy, raises for employees and the promise of a Defined Benefit Plan may be able to reduce a turnover rate. But at what cost to the taxpayers? Is the goal to reduce the turnover rate to near zero or is the goal to provide services, at reasonable cost, to the taxpayer? I know which one I choose. See more at www.peterpfeifer.com “Peter’s Blog” – County Personnel.

Mr. Smith also spends much praise on this Commission for obtaining a lower cost for our property and casualty insurance. This isn’t the first (and I hope not the last) time that something has been improved and isn’t that what we are supposed to do?

Snead Road? Right of Way acquisition was underway by The “Former County Attorney” when this Commission fired him without thinking it through. Then, this Administration just let it sit there without any action. Check the timeline for goodness sake!

The former County Administrator? They wanted to dismiss her, they said, because she did not have experience. Well, she had been serving as Administrator for 1 ½ years at that point so she had that experience. Then they replaced here with the, current, “Interim Administrator”. He had no experience in the job of Administrator at all!

The Illegal Meeting(s): In his recent letter, Commissioner Smith says “supposedly illegal meeting”. When you don’t have an Attorney, you can’t have a meeting with attorney/client privilege! That is what the Attorney General said and is also what is in the “Open Meetings” information. More at www.peterpfeifer.com “Peter’s Blog” - Recent claims about the “Illegal Meetings”.

The Minutes? We’ve been over and over that one. Bottom line? Either Staff or “some” Commissioner(s) without ANY public notice, discussion, comment or accountability changed the process, for better or worse. Why. And, if it’s better to retain the audio recordings, why not just do that instead of making the current Minutes often useless to determine what’s going on? For more, see www.peterpfeifer.com “Peter’s Blog” - Even more about the Minutes.

The reason I write letters, which predates this Commission, is because I have found it a good way to communicate with the citizens of Fayette County. When I first began to serve on the Commission someone told me that I should; listen to the issues, vote my conscience and explain my reasons. I try to do exactly that.

Peter Pfeifer
County Commission, Post 3


Submitted by 30YearResident on Sat, 07/12/2008 - 7:01pm.

Peter
You're once again proving to be an embarassment, both to yourself and to me because I voted for you. Now I wish I hadn't.

First of all, the former county administrator was NOT capable of holding that position. She was a front person for Greg Dunn, pure and simple. Dunn was calling the shots and she was running scared and allowed it.

Second, Dunn and Wells (and you) were treating county employees with disdain. The intent was to keep the turnover and run off employees with senority that were "topped out" on their wages. THere was absolutely no regard for experience, knowledge or expertise. That was why the turnover rate was so high under the Dunn/Wells/Pfeifer monopoly.

Peter, you're once again blowing smoke on behalf of Dunn and you really need to stop and start being your own man. You've got the potential, you're just not using it.

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