Description: AGENDAHED.JPG

Item No:††††††† ††††††††††† 4.C.4.

 

Meeting Date:†††††††††† August 12, 2013

 

From:††††††††††††††††††††††††† Raymond S. Sharp, Interim City Manager

 

Subject:††††††††††††††††††††† Resolution authorizing a FY 2013 employee bonus in lieu of EPIP

 

 


Staff Recommendation:

Staff recommends approval of FY 2013 employee bonus program in lieu of EPIP, not to exceed $417,995.

 

Analysis:

The last year in which pay raises were provided to all city employees was FY 2008.Since that time, employee bonuses or incentives were not available to city employees until the implementation of EPIP.EPIP provided some employees with modest raises, but most city employees received small bonuses or nothing at all in the years since.The General Fund employees fall into the latter category.

 

The proposed budget for FY 2014 does not include any provision for employee bonuses or incentives.Although it was my intent to try to provide something in the FY 2014 budget, given the severe constraints which remained at the end of the budget preparation process and the limitations I imposed upon the department heads for reductions in spending, it was not possible to do so.

 

However, Chief Chrisman made a plea during his budget presentation for employee bonuses, taking note of the fact that he had made budget reductions in staffing which produced substantial savings.Further analysis led me to the understanding that those positions were also vacant in the current fiscal year, and that similar conditions exist within FY 2013 in virtually every fund.

 

The Budget Manager provided an analysis of funding required to provide all employees with a bonus at the same percentage level as proposed by Chief Chrisman for his department.

 

The total amount required to do this city-wide, including payroll taxes is $417,995.This amount is available in FY 2013, without the need for any additional allocation of funds.This will allow for employee bonuses, with no need for budget adjustments in either FY 2013 or FY 2014.

 

Therefore, I recommend the following:

 

  1. One-time bonuses for all eligible city employees, in lieu of EPIP or any other bonus plan, for Fiscal Year 2013.There are no provisions for any such program in the FY 2014 budget.
  2. The total amount is based upon 1.86% of Salaries line (12-10) of the FY 2013 budget.
  3. Eligible employees are those who:
    1. Are not department heads or the city manager;
    2. Were employed on or before September 30, 2011;
    3. Received completed annual evaluations which were due in Fiscal Year 2013 at a rating of Meets Expectations or above; and,
    4. Are not on probation as of September 1, 2013.
  4. The amount is split evenly between a bonus based on employment duration since FY 2008 and merit bonus based on FY 2013 annual evaluation ratings.
  5. Department heads may receive up to five (5) evaluation days off, at the City Managerís discretion, which must be used prior to September 30, 2014, and may not be cashed in.

A table of proposed bonus amounts, by fund is below:

General Fund

$257,637

Stormwater

$3,121

Electric

$56,213

Gas

$18,197

Water

$21,264

Wastewater

$32,989

Communications

$5,279

Solid Waste

$12,282

Building

$4,759

Fleet

$6,254

Total

$417,995

 

Options:

1.Approve one-time employee bonus for FY 2013, as described; or

2. Such alternative action as the Commission may deem appropriate.

 

Fiscal Impact:

The total of bonuses and mandatory payroll taxes will not exceed $417,995.The amount necessary to implement the bonuses is currently available in the adopted budget for each fund, and no further allocation of funds is necessary.The payments are in the form of a one-time bonus, and will not increase costs in any future year.There is no provision for any such program in the proposed budget for FY 2014.If approved, the bonus payments will be made in the current fiscal year, in the month of September.

 

Submission Date and Time:††† 8/12/2013 10:19 AM____

 

Department: City Manager

Prepared by:R. Sharp†††††††††††††††††††††

Attachments:†† ††††††Yes____†† No ______

Advertised:†† ____Not Required ______†††††††††††††††††††††

Dates:†† __________________________†††††††††††††††††††††

Attorney Review :†††††† Yes___No ____

††††††††††††††††††††††††††††††††††††††††††††††††

_________________________________†††††††††††

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

FinanceDept. BLM,_____________†††††††††††††††††††††††††††††††††††

††††††††††††††††††††††††††††

Deputy C.M. ___________________††††††††††††††††††††††††††††††††††††† †††††††††††††††††††††††††††††††††

Submitted by:

City Manager ___________________

 

Account No. Various

 

Project No. ___________________

 

WF No. ______________________

 

Budget______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING EMPLOYEE BONUSES IN LIEU OF EPIP FOR FY 2013; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

††††††††††† THAT the City Manager is authorized to provide employee bonus payments for FY 2013, not to exceed $417,995, using available funding within the current FY 2013 adopted budget;

††††††††††† THAT the City Manager is authorized to have such bonus payments issued not later than September 30, 2013;

 

††††††††††† THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 12th day of August, 2013.

 

 

 

†† †††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††__________________________

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Mayor

 

ATTEST:

 

 

____________________________________

City Clerk