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.� <br />EN HILLS <br />MEMORANDUM <br />DATE: December 12, 2012 <br />TO: Honorable Mayor and City Council Members <br />Patrick Klaers, City Administrator <br />FROM: Sue Iverson, Director of Finance and Administrative Services <br />SUBJECT: 2012 Employee Compensation Plan — Non Union Employees <br />Back�round <br />The City Council did a market study in late 2007 and implemented a compensation plan <br />on December 1, 2007. On both January 1, 2008 and January 1, 2009, a 3% COLA was <br />applied to this plan, in 2010 there was no COLA increase. In 2011 an increase of 1% was <br />applied on January 1 St and another 1% on July 1 St. The City Council values its employees <br />and is sensitive to the market in which they compete, therefore maintaining a viable <br />compensation plan is vital to the City. <br />Discussion <br />Annually the City Council evaluates its compensation plan and determines if a cost of <br />living adjustment (COLA) is appropriate. During the 2012 budget discussions, the <br />council discussed the 2007 market study and their plan to set the benchmarks for the <br />salary ranges but due to budget constraints at the time, the benclunarks were not set at the <br />point the Council wanted to set them and planned on doing it over a few years. The <br />economic events of 2008 and forward affected this plan. After evaluating the <br />surrounding communities, it was decided to increase the salary scale by 1% on July 1, <br />20L1 which provided for a 1,5% increase to employees in 2011. Council directed staff to <br />prepare the 2012 budget with a 1% increase on January 1, 2012 and an additional 1%0 <br />increase on July 1, 2012 which results in a 1.5% increase to employees for 2012. This, in <br />effect helps to achieve the goal the City Council set in 2008 to increase the salary scale to <br />the desired benchmark compared to other cities while minimizing the effect on the <br />operating budget. <br />Attached are the compensation plans for January 1, 2012 and July 1, 2012 for Council <br />approvaL <br />City Council Meeting <br />P:�Admin\Council�Agendas & Packet Information�2011\12-12-11 Regular�Packet Information�2012 <br />Employee Compensation Plan Memo.doc <br />Page 1 of 2 <br />