Toledo’s top utilities officials last month were handed pay increases — some of which were hefty — just before the Hicks-Hudson administration froze hiring and clamped down on most overtime to avoid a $2 million general fund shortfall.
Several Toledo city councilmen Tuesday said they had no knowledge of the raises and expressed dismay.
Even though Mayor Paula Hicks-Hudson knew of the raises, she was unsure Tuesday whether her top water official, Utilities Director Ed Moore, had in fact received a 16 percent pay increase, from $94,814 to $110,000.
“I did that to get [the department of public utilities] in line ... and so we are providing quality service,” Mayor Hicks-Hudson said.
“The hiring freeze is in the general fund. This is a different fund,” she said. “We need to keep continuity so we don’t lose people.”
Stacy Weber, the city’s public information officer, said public utilities executives did receive pay raises, including the director, but initially said she was unsure whether the city could immediately release specific numbers.
After repeated requests from The Blade, she produced a list showing the names and increases for 11 high-ranking city officials, ranging from 1 percent to 18.4 percent.
The salaries of two administrators were unchanged.
Ms. Weber later said in an email that only three employees had “officially” gotten raises as a result of restructuring in the utilities department. The larger salaries will show up in employees’ paychecks, but are not official in the payroll system, she said.
Her email said Charles Campbell, an acting commissioner is now paid $90,001 up from $77,500; Abby Arnold, an acting commissioner is paid $90,001 from $76,001 and Joel Mazur, acting commissioner of public services, is paid $90,001 up from $75,847.
Mr. Mazur’s salary increased despite technically receiving a demotion. The late Mayor D. Michael Collins hired him as an assistant chief of staff, but last month Mayor Hicks-Hudson transferred him to the public services job.
Additionally, Mayor Hicks-Hudson promoted Human Resources Director Mark Sobczak to chief operating officer last month, increasing his salary from $75,000 to $92,500. Mike Niedzielski was made human resources commissioner for $75,000 a year, up from $71,036. The mayor also hired Calvin Lawshe as the city’s new economic development director $99,998. He replaced Matt Sapara, who made just over $127,000.
Those three changes were among several announced July 7 that took affect July 20. The mayor’s public information officer did not respond to repeated requests from The Blade beginning July 7 for Mr. Sobczak’s new salary until 22 days later.
Mr. Moore confirmed that his salary is now $110,000 and that the 10 other increases in his department are intended, but some may not yet have been processed.
“The executive level of DPU was underpaid where we didn’t even come to the bottom level of the national averages,” Mr. Moore said.
A list of city employees released Tuesday morning — before The Blade’s request for utilities employees salaries — showed Mr. Moore’s salary as $45.58 an hour, or $94,815 annually. The list also showed Chief of Staff Bob Reinbolt’s salary at $44.47 an hour, roughly $92,500 a year.
Councilman Lindsay Webb, chairman of council’s public utilities committee, said she had heard of the pay increases through “back channels” and called on the mayor to detail the changes during a public hearing on the utilities department’s reorganization.
The reorganization was in response to a scathing report released in January that criticized the department for issues including inefficiencies, bloated management, and low cash reserves.
The 164-page report, written by Schumaker & Co. of Ann Arbor, found that the city has no strategic plan, above-average rates of workplace injuries, below-market management salaries, supervisors who don’t actually supervise anyone, an inefficient water department customer call center, a large backlog of work orders, a sluggish water main and sewer line replacement program, and a litany of other problems.
While the salaries were increased, the reorganization left the same number of management employees.
Some, however, were given new job titles.
The hiring freeze for general-fund vacancies was immediate upon the mayor’s July 23 announcement, while the suspension of overtime hours is only for city workers “not related to the public’s health or safety.”
The city also eliminated travel paid from the general fund.
Ms. Weber said the measures would not affect assessments, the water fund, Community Development Block Grants, or any current city services.
The city has collected $1.1 million less in income tax this year than the amount collected at this time in 2014.
Additionally, Toledo collected $888,742 in red-light camera revenue, which is barely more than half of the $1.6 million the city expected to collect from the camera program by July.
Contact Ignazio Messina at: imessina@theblade.com or 419-724-6171 or on Twitter @IgnazioMessina.
First Published August 5, 2015, 4:00 a.m.
