The Gary Common Council on Tuesday approved using American Rescue Plan Act funds to create an employee incentive pay program, which Mayor Eddie Melton said will help various departments, including police and fire.
“We are living in a time where individuals from the city are being poached from other communities to work with their police and fire departments,” Melton said at Tuesday’s meeting. “We know that they are well-trained, well-experienced, and this is a total appreciation for their hard work.”
The council passed the amendment in a 6-2 vote, with Vice President Lori Latham, D-1st, and Parliamentarian Linda Barnes Caldwell, D-5th, voting no. Councilwoman Mary Brown, D-3rd, was absent.
The ordinance will appropriate more than $2.6 million to an employee incentive program and “improve the consequences of negative economic impacts that have occurred,” according to its document.
The program has various guidelines, including that employees must be employed full-time for at least 90 days prior to Dec. 6 and be employed on Dec. 6 when checks are paid.
Gary Sanitary District employees were originally included in the program, but Controller Celita Green said the department was removed because it extended its own plan.
No more than 205 employees will benefit from the program, Green said.
“The 205 is an inflated number of about six employees,” she added. “Any new employees who are hired will not benefit because they will still be in their probation time.”
Animal care and control, emergency medical services, and the police and fire departments will all receive about $5,000 each through the program. Civil employees will receive about $2,800.
“Our administration’s goal when coming into office was that we tried to acknowledge the hard work of the men and women working across the city,” Melton said. “We work to negotiate labor contract agreements with various unions, and we continue to have those conversations.”
Before she voted against the incentive program, Latham explained her vote. She believes ARPA funds should go toward items that will increase assessed value.
“I don’t want it to seem that I don’t believe in investing in employees, especially police and fire,” Latham said before her vote.
When it became law in March 2021, ARPA provided about $350 billion in additional funding to state and local governments, according to the Government Finance Officers Association. Eligible uses of the funds included revenue replacement, COVID-19 expenditures, premium pay for essential workers, and investments in water, sewer and broadband infrastructure.
ARPA funds couldn’t be used to directly or indirectly offset tax reductions and couldn’t be deposited into a pension fund. Funds must be obligated by the end of 2024 and used by the end of 2026.
Latham believes the funds should be used to help public safety officials in other ways. She thinks the money could’ve been used to improve working conditions.
“The cost, on national average, to construct a new station is about $190-250 per square foot on average,” Latham said. “About 20,000 square feet would range from about $5-10 million, and over 40,000 square feet, we’re up to about $20 million. When I look at $2.6 million, I think that could go toward new facilities.”
Latham also said she appreciates Melton’s work to ensure public officials are appreciated, but she believes the ARPA funds could be used better.
“I’m making a conscious decision,” she added. “I’m not trying to be disagreeable, but I just think that this could be done differently.”
