Budget targets employment problems county faces

In addition to promising a modest tax break for most residents, a 2022 Ozaukee County budget that was expected to be approved Wednesday focuses on attracting and retaining employees at a time when studies show some county workers are underpaid, the majority of those who quit rank their wages as fair or poor and the county is struggling to find people to work in some key areas, such as at its Lasata Care Center nursing home. 

The proposed spending plan includes — and the county Executive Committee approved on Monday — a 3% cost of living wage increase for employees not represented by a union, which constitutes the vast majority of staff members, but at the heart of the budget is a plan to finance an $873,000 compensation study intended to address its human resources challenges and  serve “as a cornerstone to the county’s recruitment and retention efforts,” according to budget documents prepared by County Administrator Jason Dzwinel.

Noting that more than half the county’s $91 million budget this year was allocated to personnel, Dzwinel gave a blunt assessment of the human resources challenges it faces.

A study of 40 county positions across 15 departments found that the wages Ozaukee County pays are 10% lower than those paid by other Wisconsin counties of similar size.

Employees who quit reported in exit interviews that their pay and benefits were the primary reason for doing so. 

Since 2020, 132 county employees quit within their first year of employment, an indication they found better-paying jobs. 

Twenty-five of the county’s senior managers who participated in the Milwaukee Top Places to Work survey scored in the bottom of the 1 percentile of similar-size local governments in satisfaction with their salaries. 

The heads of departments that include Highway, Clerk of Courts, Human Services, Lasata, Planning and Parks, County Clerk, Land and Water Management, Public Health — which has been without a permanent director since February — and the Sheriff’s Office have expressed concern about inadequate pay for their staff members.

In addition to addressing inequities in pay between county employees and their peers that work elsewhere, a compensation study would simplify an employee classification structure that has seven pay scales and is a vestige of a time before Act 10 when the county negotiated wage and benefit contracts with multiple unions representing many of its employees.

That would not only streamline the administration of payroll but provide employees clear paths for advancement. Officials note that while the elimination of most of the county’s middle-management positions over the last two decades were “prudent decisions,” that also eliminated traditional paths for advancement.

And for employees who don’t have opportunities for promotion, a proper compensation system would allow managers to reward their top performers with compensation beyond cost-of-living increases, officials said. 

The study would be funded with tax levy increases — including an anticipated one in 2023 — that the county is allowed to implement under state spending controls because of increased new construction.

The compensation study proposal comes at a time when the county is in strong financial shape. The proposed budget, officials say, reflects a historic two-year reduction in property taxes made possible through the restructuring of debt and capital improvement planning.

Sales tax revenue also continues to be a boon for the county. The 2022 budget proposal assumes $9.68 million in sales tax revenue, which by some estimations is conservative.

Under the spending plan, the county tax levy would decrease by $305,514 (1.5%) to $20.8 million and the tax rate would drop by about 10 cents (6.1%) to $1.50 per $1,000 of equalized valuation.

That means that the owner of a home with a value of $250,000 can expect to pay about $387 in county taxes, a decrease of $12.

The total tax levy and rate, which is paid by residents who live in communities not served by libraries and pay the federated library system tax, would also decrease, although by slightly less.

The proposed budget was approved by the Executive Committee Monday and the County Board was expected to follow suit Wednesday. 

The committee also recommended that salaries of the County Board members be increased to $5,460 a year and the chairman’s salary be increased to $16,380 beginning with the term of office that starts in April 2023. The increase, which must be approved by two-thirds of supervisors, would cost the county an additional $8,679 annually.