September 2023 City Employee Compensation and Solid Waste Collections Update

• The City of Durham’s minimum livable wage is $18.46 per hour, which is $38,396 annually for a 40-hour work week. To view the minimum livable wage rate history, visit our webpage.
• Due to the nature of their work, firefighters and police officers work a specific schedule that is different from that worked by non-sworn employees. Because of the unique nature of these schedules, the hourly rate is not used to determine the minimum wage calculation for these employees. The City’s Livable Wage Ordinance does ensure that these employees’ annual salaries are equal to, or greater than, the annual rate set according to Section 18-23 of the Ordinance.
• No City of Durham full-time employees’ annual salary is less than $38,396 effective July 1, 2023.

• The hiring range for Solid Waste collectors is $39,141 - $57,953 annually.
• The hiring range for Solid Waste drivers is $45,493 - $70,012 annually.
• All job descriptions and classifications, which include hiring ranges, job duties, and minimum qualifications, can be found on our webpage.
• In addition to salary, all general employees receive the following benefits package:
  • 11-13 paid holidays per year  
  • A minimum of 12 workdays of vacation per year
  • 12 workdays of sick leave per year, which accumulates indefinitely; sick leave may be used toward early retirement 
  • 12 weeks of paid parental leave for childbirth or adoption
  • Military leave  
  • City contribution of 12.85% into the Local Government Employees’ Retirement System (LGERS) for general employees and sworn firefighters; 14.01% for sworn police officers
  • City contribution of 5% into 401(K) plans for all employees 
  • Medical, dental, vision, and supplemental life insurance plans  
  • Short- and long-term disability plans
  • Paid temporary disability leave   
  • 457 Deferred Compensation Plans    
  • Paid funeral leave according to policy    
  • Employee Assistance Program  
  • Paid life insurance equal to annual salary  
  • 48 hours of leave for volunteer work each year  
  • Worker's Compensation Insurance

Our employees have been compensated in accordance with the City’s adopted budget.

FY20-21 adopted budget: 

• Pay-for-Performance increases suspended for all employees due to financial uncertainty related to the global COVID-19 pandemic
• Solid Waste collectors and drivers, along with other frontline workers such as police officers and firefighters, received 5% premium pay from May 2020 to June 30, 2021
• Bonuses of $1,000 to $1,500 based on salary levels for eligible employees

FY21-22 adopted budget: 

• All general employees:
  • 2% market-rate salary increase
  • Bonuses of $2,000 to $3,000 based on salary levels for eligible full-time employees 
  • Bonuses of $1,500 to $500 based on salary levels for eligible part-time employees
• Sworn police officers:
  • 4% market-rate salary increase
  • Bonuses of $2,000 to $3,000 based on salary levels for eligible employees 
  • Mid-year market adjustment on average of 15% provided in January 2022

• Sworn firefighters:
  • 3.5% market-rate salary increase
  • Bonuses of $2,000 to 3,000 based on salary levels for eligible employees 
  • Mid-year market adjustment on average of 14.7% provided in January 2022

FY22-23 adopted budget:

• All general employees:
  • 3% market-rate salary increase 
  • 4% to 6% pay-for-performance salary increase 
• Sworn police officers: 
  • No new market-rate adjustments due to January 2022 mid-year adjustment
  • 5% pay-for-performance merit salary increase 
• Sworn firefighters:
  • No new market-rate adjustments due to January 2022 mid-year adjustment
  • 5% pay-for-performance merit salary increase

FY23-24 adopted budget: 

• All general employees:
  • 2% market-rate salary increase 
  • 4% to 6% pay-for-performance salary increase 
  • End-of-year appreciation bonus of $300 
• Sworn police officers:
  • 2% market-rate adjustment  
  • 5% pay-for-performance salary increase 
  • End-of-year appreciation bonus of $300   
• Sworn firefighters:
  • 2% market-rate adjustment
  • 5% pay-for-performance salary increase
  • End-of-year appreciation bonus of $300   

After receiving the final sales tax distribution for FY22-23 on September 11, the City Manager is recommending to the City Council to use $6.5 million of the fund balance to give one-time bonuses as follows:

Full-time Employees

• Gross salaries are less than $57,000 annually: $3,000 bonus
• Gross salaries are between $57,000 - $90,000 annually: $2,500 bonus
• Gross salaries are more than $90,000 annually: $2,000 bonus 

Part-time Employees 

• $1,000 bonus

Full and part-time employees hired by June 30, 2023, and actively employed when the bonuses are paid, are eligible for the one-time bonus which would be paid soon following Council approval.

Money in the fund balance should only be used for one-time costs. Salary increases, which are recurring costs each year, should come from recurring revenues (such as property and sales taxes) year after year.

The market has continued to shift according to the economy, so the City must conduct a Classification and Compensation Study to ensure we are offering competitive salaries and have the most recent compensation data. This current data will help us determine appropriate pay ranges for all jobs based on duties, qualifications needed, etc. The results of this study are expected in early 2024 and will be used in the FY24-25 budget development process. The FY24-25 approved budget will take effect on July 1, 2024. 

The City’s employment policies apply to all City employees. Specifically, the City has policies that provide direction regarding the appropriate and approved use of vacation and sick leave, required leave reporting and recording, and discipline for policy violations.

The authority and status of unions in North Carolina is somewhat limited compared to unions in other states. For example, governmental entities are specifically prohibited by statute from engaging in collective bargaining with unions. Another law declares "strikes" by public employees illegal. 

While North Carolina law prohibits collective bargaining, the City Manager or her designee is available to meet with employee groups or individual employees to discuss their ideas and/or concerns.

Having garbage sitting in all neighborhoods across our city during the summer is a public health hazard. First and foremost, our duty is to protect public health and safety. Therefore, we decided to temporarily use contractors to supplement garbage collections. The cost to have contractors supporting the efforts of our collectors and drivers who reported to work during this timeframe was approximately $19,120 through September 11. No other employees from other City departments assisted with curbside collections.

The Solid Waste Management Department has a total of 120 authorized positions, with 83 front-line collection positions for garbage, recycling, yard waste, and bulky item collections. Currently, nine vacant positions are within the Collection Services team (three drivers and six collectors).