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April 24,2012 Page 9 of 11 COLA and STEPS are not given;there would be a potential savings of approximately$35,000 to$62,000. Lotter reported the that City Staff has worked collaboratively across departments,and the following successes 6. Consideration of were shared: Resolution appointing • Recipient of the IACP Award,one of 5 in the nation. volunteers to serve on various Advisory • City Hall Landscaping project Commissions. • New Brighton Community Center pedestrian bridge reconstruction. Report No.12-101. • Infrastructure maintained,street assessment manageability due to long term planning. • Excellent workman comp ratio;typically.8-.84 range. • Better ISO ratings. • Bond rating increase in 2009 following a national recession,noting New Brighton is financially well positioned. • Lowest crime rate in past 25 years. • Budget surplus since 2006 • Overall personnel cost 60%of annual budget;compared to 65-70%average. 7. Consideration of application fora solicitor Manager Lotter asked council to consider the philosophy of the compensation plan. Being mindful of license for Custom internal equity,and external comparisons. Manager Lotter recommended non union employees receive a 2% Remodelers,Inc. COLA and STEP increase,noting that non union staff will still be not be earning the market average, still me�No.i t consent uncompetitive.With the recommended COLA and STEPS employees will be 7%under market,rather than Agenda the current 9%. Manager Lotter reported the pay would be effective January 1,2012. STEP increases would be implemented on the employee's anniversary date; noting 1/2 of non-union staff are at their top rate of pay, no longer receiving STEPS. Councilmember Jacobsen asked Manger Lotter why he is proposing a 2%increase,when many comparable cities are receiving 1%. Manager Lotter reported that was in order to get New Brighton closer to the market. Councilmember Samuelson asked how the pay increase affects other benefits. Manager Lotter reported that COLA and STEPS do not affect health insurance. The budgeted amount does include other associated costs such as FICA and PERA. Remmission Liaison Reports, Councilmember Bauman reported that she calculated the average salary of 46 non union employees is Announcements and $63,113, stating that she does not believe the current salaries in New Brighton are uncompetitive. u dates Additionally Councilmember Bauman does not feel it is necessary for union and non-union employees to be equally compensated. Councilmember Bauman stated that in the current economic environment where average salaries for New Adiournment Brighton residents maybe $45,000 to $50,000; with manyon fixed incomes anysavings in the overall Themepting adjourned � g at 7:53 pm. budget would be beneficial. Councilmember Bauman reiterated that she believes the average salary is pretty high,and feels the council needs to look at the demographics of the town. Councilmember Samuelson asked how many of the non union staff live in New Brighton. Manager Lotter responded 18 of the 52 are New Brighton residents, about 1/3. Councilmember Samuelson stated that because the 2%increase is in the 2012 Budget,and because staff has worked diligently over the past years, without any increase,she is in favor of the City Managers recommendation. Councilmember Burg noted the surplus in 2011 was due partially to the wage freeze.Also Councilmember Burg commented on the many ways staff members look at cost saving measures for the City. Councilmember Burg stated that she is in support of the City Managers recommendation as well. Councilmember Jacobsen agreed that 0%over the past couple of years is a substantial sacrifice,and noted it can be difficult to catchup. Councilmember Jacobsen was pleased that the increases are budgeted for 2012. Councilmember Jacobsen asked for clarification on the STEP program. Manager Lotter reported that STEPS are awarded on the anniversary date for employees receiving a satisfactory performance review. Councilmember Jacobsen stated that he will support the recommendation with reservations. Councilmember Burg mentioned that she feels it is important to recognize staff for their contribution to the City,and will support the City Managers recommendation.