WILMINGTON — The Wilmington City Council kicked off its budget cycle last week with a stark reckoning — more than a quarter of its staff positions do not come with a livable Wilmington wage.
Becky Hawke, hired as city manager in May, is suggesting a philosophy shift to give the employees an hourly wage more in line with the cost of living. This would be a change from the current $17.38 to $21.89 — though she admitted the move would almost certainly mean a tax increase for Wilmington residents.
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“I see no way that would not require a tax increase,” Hawke said at the budget session on Nov. 17, noting staff have yet to run the numbers but would for the January budget session should council sign off on the new philosophy.
A tax increase may be a hard sell to the public, though, after last year’s countywide property revaluation, where county residents saw an average increase of 60%. Despite the city adopting an almost-revenue-neutral tax rate, many residents still had to pay more this year due to the high rise in property values.
Still, Hawke said she has seen success in another city she worked in after adopting a similar compensation approach. She claimed the organization dropped to a 2% vacancy rate and went 18 months without a voluntary resignation.
Hawke further justified the potential tax increase: “When you look at the vast majority of our employees that are public safety workers who are either firefighters, police officers or public works employees — that is where the money is going.”
Fire and police have been calling on the city to address its pay ranges over the last several budget cycles. Both departments have struggled with retaining and recruiting employees, many of whom train within the city and then leave for better pay and benefits elsewhere, often nearby beach towns or Pender or Brunswick counties. This fiscal year’s turnover rate for fire is 11.7%, while the WPD’s is 16.5%, both the highest they’ve been in four years.
“This is really not my budget,” outgoing council member Luke Waddell said, gesturing to the council elects — Chakema Clinton Quintana and Cassidy Santaguida who were sitting in on the session. “But while I’m here, this is the biggest issue affecting the government of the City of Wilmington. I think it should be on the forefront of the discussion moving forward.”
Base pay for a Wilmington police officer is $52,154, whereas across the bridge to Leland, an officer would earn $58,600. Another example: a firefighter’s base pay is $48,369 in Wilmington compared to the City of Concord at $54,600.
Council member Kevin Spears pointed out the city does have a good benefits and retirement package. Staff agreed but noted this often isn’t a big factor for young recruits with retirement far into the future.
“When you look at being able to make your monthly bills, when you look at the burdens that they’re taking on — even though, on paper, it looks like a few $1,000 — it makes a difference,” Hawke said.
But the affordability challenge extends beyond the city’s first responders. Staff shared 336 — or 28% of its workforce positions, filled or otherwise — would be advertised at a minimum rate below $45,531. Of its current employees, 141, or 13%, make below that number.
While quantifying a livable wage is location-dependent and doesn’t have a national standard, city staff chose to analyze what would be a livable wage in the city based on calculations from the U.S. Department of Housing and Urban Development. It uses a data point called the “area median income” to calculate who qualifies for subsidized housing.
“If you are a single person who is coming to work here, can you pay your basic bills with what we are able to provide you?” Hawke asked during council’s Nov. 17 budget session. “Right now, we do believe that the answer is ‘no’ for a fair number of persons.”
Wilmington’s area median income, meaning half of residents make below this number and half above, is $75,885 for single-income households. The city considers residents making below 60% of that amount — or below $45,531 — as not earning a livable wage.
These positions include facilities technicians, grounds workers, housekeepers, trash collectors and more that make less than $40,000 annually; many positions overlap with those experiencing the highest level of turnover or vacancies. Public works, for example, has the highest turnover rate in the agency, 21.7% compared to the city’s overall rate of 16.8%.
Council questioned why staff was not suggesting the city provide a wage equivalent to 80% of the median income, as those individuals would still qualify for subsidized housing under HUD rules. Staff calculated 51%, or 536, of current city employees make below that amount, which comes in at $60,708.
“I would love to do that, but that’s a bridge too far from what we’d be able to afford,” Hawke said.
She explained staff would need to be conservative or potentially reduce some budget line items this year, as providing a livable wage would be a “primary focus.”
Council member David Joyner questioned if making compensation a primary focus would detract from other city needs, like the capital improvement plan. Hawke said not necessarily.
“It’s not that we can only do one thing so much as an area that we would put significant focus in making sure that we can afford,” she said.
She went on to talk about the wide-ranging benefits a livable wage could bring to the city, potentially decreasing costs in other areas.
Hawke said: “We believe [a livable wage] will reduce the community need for subsidized housing, increase organizational efficiency, decrease turnover costs, enhance talent attraction and retention, strengthen our organizational reputation as an employer of choice, assist in the creation of a high achieving culture, and ultimately aligned strategic plan that relates to creating a thriving, inclusive, affordable community, as well as achieving organizational excellence.”
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