Agenda Item 8CAGLNDA rrrm # st:
SEPTEMBER 12, 2011
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Employee pay
SUBMITTED BY: George Foster, Human Resource Manager /011
DATE: 'September 6, 2411
BACKGROUND: At the August 31, 2011 Budget Workshop, the City Commission discussed
several possible employee pay options and requested that staff provide
options with cost data..
BU17Ci1�',T: Sufficient funds will be included within the FY 2012 budget for approved
actions.
FACTS: Employees did not receive a pay adjustment in 2009 or 2010. In 2010, a
1.1% one -time bonus was provided to employees with more than 1 year of
service as of October 1' and satisfactory performance. This Bonus was
paid on the first pay period in December.
The 12 month percent of change to the Cast of Living for June 2011 was
+3.9, for June 2014 it was +1.4% and for June 2009 it was -1.8%.
The Federal Government has reduced the employee Social Security
payments by 2% for CY 2411. If this reduction is not continued for CY
2412, it will result in a 2% reduction to employee's pay.
OPTIONS: Following are just of a few options available based upon guidance provided
at the budget work shop. All recommendations and cost information is
based upon service as of 10/01/11, receipt of satisfactory evaluation
report, and includes all full time and two regular part time employees. The
additional estimated benefit costs for Social Security (6.2 %), Medicare
(I.45 %) and "Workers' Compensation (2.24 %) is included. Payment would
be on the first pay period in December which is December 2, 2011, The
City has approximately 108 employees that will have 1 year of service and
approximately '100 employees that will have 2.5 years of service as of
October 1, 2011.
Although cost information includes all employees, pay adjustments for
union members must be negotiated with the City's two unions.
AGENDA ITEM # 8C
SEPTEMBER 12, 201 I
One year of service and a 1.1058% lump sum bonus.
Estimated cost of $66,000.
2. Two and one -half years of service and a 1.1835% lump sum bonus.
Estimated cost of $66,000.
3. A lump sum payment in the amount of $556.11 to all employees with 1
year of service.
Estimated cost of $66,000.
4. A lump sum payment in the amount of $600.60 to all employees with
2.5 years of service.
Estimated cost of $66,000.
RECOMMENDATION:
Although there are pros and cons to each of the options, I would
recommend Option 3 as it will provide more lower paid employees with a
greater bonus in relationship to their annual pay.
REVIEWED BY CITY MANAGER: