WATERLOO - Mayor Tim Hurley's plan to make the city salaries more competitive won approval Monday.

More than 100 Waterloo department heads, managers and other professional staff will enjoy a pay boost Jan. 1, 2009, after City Council members voted unanimously to approve Hurley's "closure pay" plan awarding raises anywhere from $200 to $1,800 per year depending on the position.

The adjustments are on top of the 4 percent raises awarded to all city workers last July 1.

"We are woefully behind in our salaries for like positions, and we lose good people," said Hurley, adding the latest boost "moves us an inch or two closer to where we should be."

Hurley compared salaries for similar positions in the cities of Iowa City, Council Bluffs, Dubuque, West Des Moines and Ames to his staff before recommending some $94,400 in raises, including related benefits, to close the gap. It would have taken $180,000 just to cover 20 percent of the existing gap for all positions.

"My focus was on the positions and not the people," he said, noting the size of the raises were not based on job performances.

Council members had budgeted $96,000 for the closure pay this year. Since the raises were delayed until January, halfway through the fiscal year, the cost to the current year's budget will be less than $48,000.

Several council members offered ringing endorsements for the move.

"Our city salaries are embarrassing, even if we look at that little city up the river," said Councilwoman Carolyn Cole. "We are low."

Councilman Reggie Schmitt added, "I'd also like to point out … we still have 17 positions that are paid $10,000 or more under the average."

Councilman Steve Schmitt supported the plan but noted his fears about how they would affect the property tax rate in the next budget year.

"I'm just a little bit concerned we're having this discussion at the same time we're making our initial offer to our other (unionized) employees," Steve Schmitt added.

The city and its five collective bargaining units, which represent more than 80 percent of the work force, recently exchanged initial contract offers, with the city proposing a pay freeze for unionized workers.

Hurley said the closure pay plan was not intended as an "in your face" to the unions. He noted some department heads currently are struggling to fill positions affected by the closure pay increases.

Contact Tim Jamison at (319) 291-1577 or tim.jamison@wcfcourier.com.