Agenda Item 8BAGENDA ITEM # 8B
OCTOBER 22, 2012
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Cost of Living Raise for Non Union Employees
SUBMITTED BY: Jim Ha sso it Mana
DATE: October 12, 2012
BACKGROUND: It has been the City Commission's intent to provide a one percent cost of
living raise to all City employees effective with the beginning of the
current fiscal year on 10/1/12. However, negotiations with the City's two
unions have been delayed and an impasse has been declared with the
City's blue collar union. Resolving the contract issues with the two
unions is expected to take several more weeks at best.
So as not to penalize the non union City employees for these delays, it is
now proposed that the Commission approve a one percent cost of living
increase for all non union employees, excluding the City Manager and
City Clerk, to be retroactive to 10/1/12.
It is recommended that this raise be given as a cost of living increase.
However, the starting salaries in each of the pay grades should remain as
they have been for the last several years so as to help offset the pay
compression problem that has arisen through several years of no raises.
To ensure that all employees get the raises, the top pay in each grade
should be increased by one percent so that those who are "topped out" are
not left out.
BUDGET: The cost to give a one percent cost of living increase to all
City employees is $60,600 per year. However, excluding the union
members, the cost for the non union employees is estimated at $33,740 per
year. It is anticipated that this cost can be absorbed into the City budgets,
particularly because health insurance savings are expected to reduce City
costs in the current fiscal year.
RECOMMENDATION: Authorize a one percent cost of living raise be provided to non union
employees with an effective date of October 1, 2012.