01-12-2010 Council Work Session Packet

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�.� MEMORANDUM To: Mayor and City Council From: Ron Olson, Finance Directorr� (� �_ Date: January 11, 2010 Subject: Employee Compensation/Step Increases Staff has been directed to gather information regarding employee compensation to discuss at a work session. The following items are attached to this memo: • Position Groupings • Pay Levels and Steps for 2009 and 2010 • City Administrator Salary Survey • Vacation Schedule • Health Insurance Options An employee is placed into the pay scale at a level based on their position. Depending on an employee's experience, they may start higher than step 1. If an employee is started at step 1, they will reach their top step (step 4) in three years. Each step in the pay scale is approximately a 5% increase in pay. The pay scales are annually adjusted by resolution to reflect a COLA increase. The COLA increase a�plies to all employees; a step increase only applies to employees that are not at the top of their pay level. An employee that receives a step increase will see an increase in wages of 5% plus the amount of the COLA. In addition to their wa�e, employees receive 12 paid holidays, 96 hours of sick leave, vacation based on years of service, and an insurance contribution of$840/month in 2010. An employee that waives health insurance will still receive a portion ($450.24/month in 2010) of the insurance contribution. An em�loyee choosing family health insurance may pay significantly more than the City's contribution. Employees can choose to purchase the following insurances Health, Dental, Life, LTD, and S1'D. In addition, the City also offers employees the option to participate in a Flexible Spending Account for health and dependent care. Employees are eligible to participate in a one of three deferred compensation plans.