Res. #12-022 - Adjusting Compensation for Non-Bargaining Unit Employees

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CITY OF CENTERVILLE RES. #12 -0 ,2,. RESOLUTION ADJUSTING COMPENSATION FORNON - BARGAININGUNIT EMPLOYEES WHEREAS, the City has an established compensation system for its employees; and WHEREAS, City employees did not receive a wage increase in 2010, 2011 or 2012; and WHEREAS, during the past three years, the employee share of health insurance premiums increased by approximately $1,300 per year for single and $2,800 per year for family coverage, while the employer share remained constant, and WHEREAS, the City Council desires to make adjustment to the employee compensation for the period, January 1, 2013 - December 31, 2014, and WHEREAS, the City Council wishes to provide lump -sum monetary compensation of $500 in lieu of an increase to the base pay in 2012 for full -time non - bargaining unit employees, who have been employed with the City from January 1- December 31, 2012; and WHEREAS, the City Council has determined that this lump sum payment meets the criteria of "public purpose expenditure" according to Minnesota Statutes; and WHEREAS, the lump sum payment will be considered wages for tax withholding purposes, employees may elect to have the payment deposited directly into a health savings account (HSA) or deferred compensation account so long as the annual maximum contributions are adhered to. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE: 1. The Council hereby authorizes a lump sum payment of $250 which shall be earned during and apply to the pay period that includes September 24, 2012 and an additional $250 which shall be earned during and apply to the pay period that includes December 3, 2012. Qualifying for the additional payments are: active full -time employees who were employed on January 1, 2012 and are still employed on each of those pay period dates, to achieve the Council's objective of recognizing employees for their efforts to continue to provide excellent service during a time of staff reductions, while pay and benefit levels have remained constant. To be eligible, an employee must continue to maintain satisfactory annual performance reviews through 2012. 2. Non - bargaining unit staff shall receive a cost of living adjustment to the pay schedule of 2% on January 1, 2013 and 2% increase again on January 1, 2014.