04-24-2012 - Laserfiche WebLink

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Apri124, 2012 Page 9 of I1 It was reported that a study was completed through Springstead: findings of that study indicate that New Brighton employees are 7-8% below the market average, for non-union employees, that changes to about 9% below the market. 'The 2012 COLA and STEP increases are currently part ofthe 2012 budget, Manager Lotter reported if COLA and STEPS are not given; there would be apotential savings of approximately $35,000 to $62,000. Lotter reported the that City Stiff has worked collaboratively across departments, and the following successes were shared: • Recipient of the IACP Award, one of 5 in the nation. • City Hall Landscaping project. • New Brighton CommunityCenterpedestrian bridge momshixhon. • Infrastructure maintained, street assessment manageability due to long tem 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. Manager Lotter asked council to consider the philosophy of the compensation plan. Being mindful of internal equity, and external comparisons. Manager Lotter recommended non union employees receive a 2% COLA and STEP increase, noting that non union staff will still be not be earning the market average, still uncompetitive. with the recommended COLA and STEPS employees will be 7% under market, rather than the current 9%. Manage Lotter reported the pay would be effective January 1, 2012. STEP increases would be implemented 'on the employee's anniversary date, noting %2 of non -rasion staff are at their top rate of pay, no longe receiving STEPS. CourrcilmerrberJacobsen 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 close to the market. Councilmember Samuelson asked how the pay increase affects other benefits. Manager Lotter reported that COLA and STEPS do not affect health insuramce. The budgeted amount does include other associated costs such as FICA and PERA. Councihmember Bauman reported that she calculated the average salary of 46 non union employees is $63,113, stating that she does not believe the cun-e t salaries in New Brighton are uncoimpetifive. Additionally Coundlmenber 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 Brighton residents may be $45,000 to $50,000; with many on fixed incomes, any savings in the overall 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 ofthe town. Councilmember Sanuelson 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 yeas, 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 fieeze. Also Councilnnenber Burg commented on the many ways staff members look at cost saving measures for the City. 'Councilmenber Burg stated that she is in support of the City Managers recommendation as well. Councalmember Jacobsen agreed that 0% over the past couple of years is a substantial sacrifice, and noted it can be difficult to catch up. Councilmenber 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. CouncihnemberJacobsen stated that hewill support the recommendation with reservations.