Hope Mills Commissioners took up the question of town staff compensation during the board’s first budget retreat ahead of the 2024-2025 budget season.
The commissioners, meeting March 7, discussed the results of the pay study commissioned in October encompassing each of the town's departments, received information about General Obligation (GO) Bonds — municipal bonds backed solely by a local government’s credit and taxing power, according to Investopedia — and heard an update about the town’s finances from Finance Manager Drew Holland.
Pay study
Piedmont Triad Regional Council Management Analyst David Hill presented the results of the pay study, which compared the town’s salaries rates to 12 nearby markets, including Fayetteville and Cumberland County.
Hill said the study found that Hope Mills employee pay is 16.48% below average of those dozen neighboring markets.
“You’re kind of checked out from the market,” Hill said. “If you don’t do anything with this proposal today, you’re going to fall below the market, and it’s only going to get worse.”
The minimum pay for a police officer in Hope Mills is $41,938, with a maximum salary being $64,122. The average police officer in Hope Mills is making around $43,474. In Fayetteville, the minimum salary for a police officer is $43,860, with a maximum of $65,790. The average salary is $52,409.
Hill suggested implementing a new pay plan that would assign each position to the market-supported pay grade and establish employee salaries using a 10-year plan. According to Hill, that would increase retention because over half of the employees at Hope Mills have been employed there less than five years.
The board unanimously voted to implement the plan beginning with the fiscal year. Implementing the new pay plan will cost the town $618,980.
After a lunch break, the board discussed public safety salaries. Town Manager Chancer McLaughlin recommended that new salaries for employees of the police and fire departments be implemented immediately rather than waiting until July.
Commissioner Elyse Craver initially opposed the idea, saying it would be unfair for one group of town employees to get raises before the other departments. But the directors of the Public Works, Parks and Recreation and Human Resources departments all agreed that public safety salaries should be a priority.
The board then unanimously approved immediately implementing the new pay plan for the police and fire departments, beginning in April, at a net cost of $106,650.
Mayor Jessie Bellflowers noted after the vote that the pay plan only works if the board continually evaluates the pay scale and compares it to the current market. Otherwise, he said, the town will end up behind the market again in 10 years.
“We will develop an action plan going forward,” Bellflowers said. “We will put a strategy together so this town will not see those numbers again.”
Tax increase discussion continues
Holland delivered a presentation about the town’s finances and discussed the need for a property tax increase.
Holland stated that a tax increase would help reduce the upcoming decrease in sales tax revenue. In his report, Holland said that a 5-cent property tax increase would cost the average homeowner an additional $117.12 per year, or $9.76 per month.
Craver, who has been vocal about being against a tax increase for the town, said the board and town staff haven’t accounted for the countywide property revaluation set for Jan. 1, 2025. She believes the revaluation will help boost the revenue needed for the town. The last county revaluation was in 2017.
After receiving the finalized budget in May, the board will vote on a possible tax increase.
GO bonds
The idea of a General Obligation (GO) Bond — municipal bonds backed solely by a local government’s credit and taxing power, according to Investopedia — was also discussed as a way to help pay for parks and recreation projects like Hope Mills’ proposed community and senior centers. GO bonds are issued on the basis that the local government would repay its debt obligation through taxation or revenue from projects, according to Investopedia. The bonds are voted on by the residents.
Holland noted the problem with GO bonds is that the money can only be used on the specific projects for which they’re designated.
According to Holland, the GO bond question won’t happen in the coming fiscal year. However, if the board does want to consider a GO bond, he recommended researching and getting financial details of the proposed centers this year, in order to get a referendum on the ballot in the November 2025 election. The proposed community center is expected to cost $3,321,000, while the senior center is expected to cost $2,330,700.
The board will hold another budget workshop in mid-May. This meeting will review each line item of Holland and the town staff's proposed budget.
Contact Hannah Lee at hannahleenews@gmail.com.
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