Agenda Item 8AAGENDA ITEM # SA
SEPTEMBER 26, 2a 11
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Employee Pay
SUBMITTED BY: Resubmittal: Requested by Mike Borno, Mayor
Initial = 09 /06/11: George Foster, Human Resource Manager
DATE: September 20, 2011.
BACKGROUND: At the August 31, 2011 Budget Workshop, the City Commission discussed
several possible employee pay options and requested that staff provide
employee bonus options with cast data.
At the September 6, 2011 Commissioner meeting, funds for an employee
bonus were removed from the FY 2012 budget; therefore, the employee
bonus was not discussed.
BUDGET: Sufficient funds are not currently included within the FY 2012 budget for
recommendations below and the FY 2012 budget would need to be
amended if an employee bonus is approved.
FACTS: Employees did not receive a pay adjustment in 2004 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 can the first pay period in December.
The 12 month percent of change to the Cost of Living for June 2011 was
+3.9, for June 2010 it was +1.4 %4 and for June 2009 it was - 1.8 %.
The Federal Government has reduced the employee Social Security
payments by 2 %n for CY 2011. If this reduction is not continued for CY
2012, it will result in a 2% reduction to employees' net pay.
OPTIONS: Following are just of a few of the many options available based upon
guidance provided at the budget work shop. All recommendations and
cost information is based upon service as of 10 /01111, receipt of a
satisfactory evaluation report, and includes all full time and two regular
part time employees. The additional estimated benefit costs for Social
Security (6.2 %a), Medicare (1.45 %0) and Workers' Compensation (2.21 %a)
is included.
AGENDA ITEM # 8A
SEPTEMBER 26, 2011
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.
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 the lower paid employees with a
greater bonus in relationship to their annual pay.
If approved, funds need to be added to the FY 2012 budget.
REVIEWED BY CITY MANAGER: