City, police union at odds over officer pay

Sioux Falls police officers want a bigger raise the next two years than City Hall is willing to offer.

The city of Sioux Falls and the Fraternal Order of Police, the union representing about 220 Sioux Falls police officers, are in a stalemate over wages for 2017 and 2018, according to press releases issued by both groups Wednesday.

The city’s offer of 1.5 percent pay increases for the next two years was rejected by union members last month. State law prohibits public employees from striking, so if no deal can be reached before the current three-year contract expires on Dec. 31, the city will implement its offer regardless. The existing, three-year contract provided for annual pay raises of 3 percent.

Union attorney Tom Wilka said the focus of negotiations were recruitment and retention.

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“The Union membership does not believe the City of Sioux Falls’ offer reflects addressing these key issues in light of both City Finance Director (Tracy) Turbak and Mayor (Mike) Huether’s most recent economic overview and outlook with Sioux Falls’ strong economy,” he said.

While the local economy has been strong, sales tax revenue has slowed in recent months. After years of revenue growth around 6 percent or more, the funding source has slowed to about 4 percent during the last 12 months. The city's statement said staff would not provide any additional comment, citing potential litigation.

The city and union representatives met Monday to discuss the membership vote that rejected the city’s offer. The city offered to reopen talks on wage increases for 2018 if sales tax revenues improve to at least 5.5 percent by the end of 2016.

“The city has communicated to the (union) its intention to implement the terms associated with its final and best offer effective Jan. 1, 2017,” the city’s news release said.

The starting pay for Sioux Falls police officers in 2016 is $23.53 per hour or $48,942 per year. A top-earning sergeant in the department earns $38.48 per hour or $80,038 per year. Nationwide, the average pay for a police or sheriff’s personnel was $58,320 per year, according to the Bureau of Labor Statistic’s May 2015 report.

Although she wouldn't say if 1.5 percent increases are adequate, City Councilor Theresa Stehly said the lack of progress toward a new collective bargaining agreement is troublesome and shines a light on "shriveling" sales tax revenues.

"That first penny (sales tax fund) is so maxed out with salaries, the indoor pool and all these fixed expenses," she said. "They're making the cuts, and maybe that has to be done but this isn’t the time to be spending more than we need to."

Contact reporter Joe Sneve at (605) 331-2318, jsneve@argusleader.com, or on Twitter @Argus_Joe.