Magnolia City Officials Receive Early Christmas Gift to Themselves in the Form of a 30+% Raise in a Salary and Benefit Package

On Tuesday, December 2, during the Monthly City Board Meeting the normal agenda items were discussed and processed. Then, as the meeting was ending, the mayor brought up 2 “addendum” entries. The first being that the city’s attorney, Barbara Blackmon, will resign at the end of December. There was no discussion as to the resignation provided during the meeting - only that a letter of resignation had been submitted. There was also no discussion or time frame related to the replacement of our attorney.

Every year in the November/December time frame the city reviews and renews its insurance policies. In addition to property, liability, and other insurance, most full-time city workers have city paid health insurance in which the rates are reviewed and renewed. The week prior, during the monthly “work session,” a representative from Blue Cross Blue Shield was invited to the meeting to discuss the proposed costs to the city for these policies. During that meeting Alderman Burton basically harassed the insurance representative about his personal health insurance costs being too high. It appears that Alderman Burton utilizes the city’s group rate insurance plan for his personal health insurance. None of the other city Board members utilize the city’s group insurance policy. Currently, the city’s group health insurance plan is set up where each employee’s insurance cost is based on age, health, and other factors. In past years, Alderman Burton has suggested a flat rate for all employees, effectively lowering his personal cost and raising just about every other city employee’s premium cost.

So now let’s discuss the second “walk-on” addendum item to the agenda. The mayor made a motion for the city to pay the Health Insurance Premiums for the Mayor and all Alderman. The mayor’s motion was approved but not before Alderman Cornacchione argued that this was irresponsible and that this motion was a re-do October 2017 raise promoted by Mayor Anthony Witherspoon giving each Aldermen/ Alderwoman a 20% salary raise, but also giving them the option of the city paying for their health insurance (a cost of approximately $500/month) or taking the “premiums” money and buying their own insurance. As a result of the 2017 salary and benefits increase offered, every Alderman/Alderwoman took the money and opted not to have the city provide the health insurance. These actions, just 5 years ago, effectively raised the mayor’s annual salary from $20,444 to $35,000 and gave each Aldermen a raise from $652 to over $1,300 per month - an average increase of 86% increase in their salaries. This is the same Board that voted themselves a huge raise this week as they did in 2017. Alderman Cornacchione was the only Alderman to vote against raising the salaries and benefits package for the Board.

The results of Tuesday night’s meeting and approval of raises to these “part-time” employees could cost the city up to an extra $60,000 per year. This increase was not budgeted for or discussed in the annual budget public hearing held just 3 months ago! During Tuesday night’s meeting Alderman Cornacchione argued that Alderman/ Alderwoman’s positions are part-time employees and aren’t entitled to health insurance (as is the case with all other city departments). The other members of the Board just “sat on their hands” and none of the other Aldermen commented. The mayor noted that other municipalities of Magnolia’s size provide health insurance to their Boards. A review of municipalities, using The Stennis Institute documents, does not support the mayor’s claims. In the end the hard-working taxpayers of Magnolia will be forced to pay the increased costs. In the current structure of Magnolia’s municipal government (Mayor and Alderman), the city officials can vote themselves a raise any time they feel like it. As was the case that occurred Tuesday night. In the end the taxpayers of Magnolia will feel the pain in their pocketbooks for the actions of this Board.

City Editor’s Note: When our mayor and Board took office, less than 18 months ago, I wondered how long it would take for them to award themselves a salary increase. I figured it would occur in the first year, but they waited 18 months. Umm!! During the 2023 budget discussions there would have been ample opportunity to discuss and present this proposed salary and benefits increase to the public. None of that occurred. In fact, the public didn’t see the entire budget because the Magnolia Utility Fund and Budget was not presented. Instead, our elected officials are now lining their own pockets and focusing on personal gain. Those funds could have gone to fixing the city’s infrastructure or potholed streets and broken sidewalks and broken water and sewer lines. What happened on Tuesday evening is wrong for so many reasons. - And, in fact, the salaries for our Board were higher than nearly every other Mississippi city of a population comparable to Magnolia. I encourage you to review the Stennis Institute’s Salary Survey for MS Municipalities (2021).

Magnolia apparently declines to send in a survey request so our city’s statistics can be included- I will say that even Osyka (with a population of 441) is included in this survey. I also researched the MML documents and although our Board and Mayor attend their meetings, there are not specific references or statistics for Magnolia included in their documents.

1) As seems to be the case with actions that might be controversial for the public, it’s the “walk-on” addendum items that seem to impact the city’s taxpayers the most with no opportunity for public comment - because the public still can’t speak at the regular monthly Board meetings.

2) According the 2010 and 2020 Census our city has decreased in population by over 500 residents (2410 resident in 2010 to 1883 residents in 2020). This decrease in Magnolia’s residents has a direct result on property tax revenues that support the city’s annual budget. Because of the actions of the Board, like giving themselves a raise when the country is going into a recession and the city’s population is in decline, will impact taxes for those who chose to stay in years to come.

3) A review of other municipal governments of similar size identified that Part-time Aldermen did not receive city-paid Health Insurance, and in fact, the salaries for our Board were higher than nearly every other Mississippi city of a population comparable to Magnolia. I encourage you to review the Stennis Institute’s Salary Survey for MS Municipalities (2021).

I appreciate Alderman Cornacchione’s attempt to keep this city fiscally responsible. It appears from these latest actions that for most our Board it’s all about personal gain and not about promoting and maintaining our city!