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There are two types of inerit pay. An employee may receive both types of inerit pay within the same year; however the employee may never exceed the gross income for the merit pay cap of their pay grade. Each type of inerit pay is described below: 1. One-time / Lump Sum Merit Payment 2. Standard Hourly Wage Merit I. ONE-TIME / LUMP SUM MERIT PAYMENT: A one-time merit payment may be awarded to an employee for proj ects or situations where the employee significantly rises above and beyond their normal duty requirements in order to accomplish a work assignment or serve the public. This may include a one-time outstanding effort, or an effort that results in significant cost savings to the City. One-timellump sum merit payments are not added to t�ae employee's base wage to be considered for future increases, but will be included in gross annual wages and taxed as such. The one-time merit may consist of up to a cap of 1% of the employee's current annual pay. At no time may an employee receive this component more than once annually. II. STANDARD HOURLY WAGE MERIT: Employees may be recommended for an hourly wage merit pay increase anywhere within the current merit pay wage portion for their position. Hourly merit pay may not exceed 15% above the top step pay for each position and is added to the employee's base wage. An employee's base salary cannot be increased more than the merit pay range in the City's Compensation Plan for that position. Eligible employees who meet the criteria below participate in two tier levels (Departmental & Individual) of standard hourly wage merit pay program as described below. Eli�ibilitv Criteria - Standard HourIv Merit: " At least one year at the top step for the current pay grade * At least two years total experience with the City of Roseville, and * A overall rating of "exceeds expectations" on the most recent performance review, and * A copy of the approved, agreed upon, departmental and individual goals &objectives with the merit pay of percentage of the merit amount for achievement of each goal attached. Example: Dept. Goal = 50%: Indiv. Goal = 50%: Denartmental Tier Comvonent Total Merit Pay = 6% Develop Annual Sewer Jetting Program with time standardslinclude the details for achievement increase data entry recorded accuracy from 98% to 99%/include the details for achievement The goal of the departmental component is to provide a process whereby the accomplishment of previously agreed upon department goals and objectives are measured and objectively rewarded. The performance of the entire team impacts the success of the departmental component. Dona Bacon Page 4 1011312005