03-22-10 CC WS AgPCITY OF SHOREWOOD
crry COUNCIL WORK SESSION
MONDAY, MARCH 22, 2€10
mummem
5755 COUNTRY CLUB ROAD
CITY HALL
6:00 P.M.
�= 1=111
B. Review Agenda
3. PERSONNEL POLICY MANUAL
Mayor I-iz6e
Bailey
Turgeon
Woodruff
Zerby
Administrator's CAF
Administrator's CAF
4. ADJOURN
-.OUNCIL ACTION FORM
The Council adopted a 20 year road improvement program in 2008 and directed staff to begin
evaluating methods for funding the program.
Staff met and discussed several options and methods ranging from assessments to taxes. Attached is a
memorandum outlining the discussion, the options discussed, the assumptions used in the analysis, and
a few pros /cons for each scenario. Also attached are spreadsheets and graphs for each option.
Options:
1) Direct staff to develop a comprehensive bonding proposal including the issuance of bonds in
2011.
2) Direct staff to modify the Road program to accommodate an accelerated road program and
adjust the assumptions and financing options accordingly.
3) Direct staff to further analyze financing the road program with levy and other sources and
include dollars in the 2011 budget.
4) Provide direction to staff to prepare an RFP for consultant to review and provide additional
analysis.
5) Do nothing.
Recommendation
Staff suggests Council evaluate the options and consider the option that provides the most stability
overtime and results in the least impact on the residents over the long term. Given that, it appears a
method that combines funding options is the best course to take.
Council Action:
CITY OF SHOR
Sri— a :at)w P W -o't s Dyb 'ctof� , B"''m"" Je Plul ;'i011, Financ
rector, Janries tJandiifi, (1 Engin c -�-
A] Wednesda , March h f a 2010
It J "C' .- lloa(l Air° °r _t =inanacing tlt - ions
The City Council adopted a 20 year road program in 2008. The goal of the program is to repair
through reconstruction or reclamation roads that score a four (4) or lower on the PASER
evaluation system. Staff evaluates the estimated cost to reconstruct or reclaim the road and
uses cost as an added factor in determining the target year for the project. Staff did this in an
attempt to avoid large peaks and valleys in the road program and to make financing the
program more feasible; the estimate to complete the program is approximately $35 million.
The question facing the council is how to finance the 20 year road program. Staff met to discuss
the different options available to finance the program and arrived at the following possibilities:
1. Develop an assessment policy and assess a portion of the road construction to the
benefiting property owners.
2. Sell bonds every few years to fund the program.
3. Capitalize the road program by transferring the assets from the sale of the liquor stores
to the road fund.
4. Increase the amount transferred to the road fund from the general fund over time.
5. Some combination of the above
Staff decided to reject the first option — special assessments — because the Council was not
particularly interested in funding the roads via special assessment. With this option removed, we
began to discuss the remaining options. Each option is explained further below and each option
includes a corresponding spreadsheet and graph showing our best guess / estimate on the
impact.
Analysis
To analyze the various scenarios, we used the following set of assumptions:
a. The transfer of funds from the General Fund to the Road Fund continues.
The analysis we provide is only a rough estimate based on the known factors, as they exist
today. The biggest factor that will change the outcome of the various scenarios is acceleratiag,
the road program or adding additional roads.
This method allows the city to issue debt to acquire funds sufficient to construct two 0to three
(3) years [f roads and pay the debt off over time. The amount Of debt h} issue depends OOGfew
factors such as the city's debt ceiling and the number 0f projects th3CityC8DoOrDp|ete.
The spreadsheet showing this option provides for a $5 million dollar bond issue next year and
also Dl8iDt8iOiDg the current transfer of$7OO Road Fund from the General Fund. Debt
payments begin iD2O12/2O13 and the levy i8 raised tD cover the added debt service. This option
potentially funds the program through 2025 at which point the Road Fund enters a deficit.
Things to consider with this option: the increase in the levy to cover the debt service is, UOd8[
present l8VV, not included in levy limits. This pFOCeSS [8i8eS sufficient funds in 8 short amount of
time. Additional roads can be added thereby allowing for an accelerated road program. The city
may need to add additional debt to complete the program. Debt is long term. Thera are added
costs for issuing debt. Consultant may be required to help structure the bond debt.
Use Proceeds from Liquor Store Sale
This method takes existing funds that are not designated for any purpose and transfers the full
amount to the road fund. The Liquor fund currently contains approximately $800,000. The Road
Fund balance increases to oppnoxinnate|y$2.8 million in 2011 with this transfer. Under our set of
8SSU0CtiOOG the road fund [UO8 a deficit in 2016. This option provides for immediate influx of
funds without a corresponding increase in the levy. This is a onetime option and the benefit is
rather short lived so the Council will need to consider some other method to raise the necessary
dollars to complete the program.
Increase the General Fund Transfer
This proposal increases the levy such that the city adds $150,000 to the road fund transfer each
year from 2O11tO2O158t which point the total amount transferred reaches $1.450.000
annually. This option provides a long term solution and impacts the levy by approximately 3%
per year. The ability toraise the levy could hampered if levy limits continue G8 increasing for the
road transfer minimizes the ability to increase the levy for other programs and services.
Combination of Methods
Assumptions used
Transfer remains constant at $rnn,0uo per year
wo increase m base levy
Anticipated revenue mns/st,nfintemuuaseuonz.6a%ofua|oncea^uStatenv;uaiumappmx/madev$a\mmpe,vm,
The $n0,nnn maintenance money coxen|ty flows m the General fund for general maintenance items.
mo change in project schedule
Based oo current program, the road fund enters a deficit follow the zuzz construction season.
'
�10
2011
2012
201.3
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Beg balance
1,096,343
1,065621
$ 667173
g (43,1e)
$ (54,653)
$ (1e8088}$
(715,465)$
{884,4e1)
$(2,101'184)g(2.581,03e)
$(3,054,426)
$(3,ze5,7a7)
$<a^ass.7/z>$(3,zmsoo7)$(s'cas'/7a)$(4,z4o1co)
$<5,gy6,sp#$(6,z�3,uoB$(6,sz2,0oe)
Anticipated revenue
$
78\090
g 77,583
g 71,008
$ 60,000
g 60,000
$ 60,000
$ e0,000
$ e0,000
$ 60,000
$ 60,000
g 60,000
$ *0,000
$ 60,000
$ e0,000
$ 60,000
g 60,000
$ 60,000
g 60,000
$ *0,000
General Fund Transfer
700,000
$ 700\000
g 700000
g 700,000
$ 700\000
$ 700\000
$ 700,000
g 700,000
$ 700,000
$ 700,000
$ 700,000
g 700\000
g 700,000
$ 700\000
$ 700,000
g /oomm
$ 700\000
g 700,000
g 700,000
Total Revenue
$
1
g 1
S 1.438
g 716.831
g 705
g 561
$ 44
$ ( 124 ' 461 )
$( 1 . 341 . 184 )$( 1 ' 821 ' 036 )
$(
$(2'505'737)$(2'593'772)$(2'526'867)g(2.875'178)$(3'480'165)
$(5.236
$(5.752
Road Projects
g
xoo
$ 1.176.031
$ 1
g 771
g e03.435
S 1.277
$ e28
$ 1
$ 1
$ z.zsa
g 971
g 848
$ nez
g 1.108
$ 1'3*4
$ 2
$ 976
$ 1.058
$ yzx
Balance
g
1
$ 667
$ (43'169)$
(s*'ssx)$
(198
(715'465)
g (884'461)
g(2.101'184)g(2.581'036)
g(3'051.426)$(3'265.737)$(3.353.772)$(3'286'867)$(3'635'178)
g(4'240'165)$(5'996'564)
$(6,213'429)g(*'512'059)$(6'680'872)
Levy Impact
2010 Levy
$
*
$ *
g 4
$ 4'77*
$ 4.776
$ 4.776
$ *'rre.zez
g «'rrs'zsz
$ 4.776
g *'rra
$ ^'rra'zgz
g 4
$ 4
g 4
g 4
5 4
g 4,776
$ 4.776'2e2
$ 4
Projected increase mdollars
$
$
$
$
$
$
g
$
g
$
$
g
g
$
$
$
$
$
Percent increase
om
o%
0%
nm
0%
0%
0%
0%
om
0%
0%
0%
mu
nm
0%
0%
o%
oN
0%
Assumptions used
Transfer remains constant at $rnn,0uo per year
wo increase m base levy
Anticipated revenue mns/st,nfintemuuaseuonz.6a%ofua|oncea^uStatenv;uaiumappmx/madev$a\mmpe,vm,
The $n0,nnn maintenance money coxen|ty flows m the General fund for general maintenance items.
mo change in project schedule
Based oo current program, the road fund enters a deficit follow the zuzz construction season.
'
100000
1
150000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2.022 2023 2024 2025 2026 2027 2028
Beginning balance $ 1,096,343 $ 1,065,621 $ 817,173 $ 409,306 854,576 $ 1,325,241 $ 1,579,731 $ 2,186,800 $ 1,756,159 2,055,284 $ 2,365,806 $ 2,943,531 $ 3,654,064 $ 4,531,261 $ 5,007,716 $ 5,235,357 $ 4,315,341 $ 4,919,679 $ 5,452,224
Anticipated revenue 78,090 77,583 73,483 66,754 $ 74,100 $ 81,866 $ 86,066 $ 96,082 $ 88,977 $ 93,912 $ 99,036 $ 108,568 $ 120,292 $ 134,766 $ 142,627 $ 146,383 $ 131,203 $ 141,175 $ 149,962
General Fund Transfer $ 700,000 $ 850,000 1,000,000 $ 1J50,000 $ 1,300,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000 $ 1,450,000
- rota) Revenue $ 1,874,433 $ 1,993,204 1,890,656 $ 1,626,060 $ 2,228,676 $ 2,857,108 $ 3,115,796 $ 3,732,882 $ 3,295,136 $ 3,599,196 $ 3,914,842 $ 4,502,099 $ 5,224,356 $ 6,116,027 $ 6,600,344 $ 6,831,740 $ 5,896,544 $ 6,510,854 $ 7,052,185
Road Projects $ 808,812 $ 1,176,031 1,481,350 $ 771,484 $ 903,435 $ 1,277,377 $ 928,996 $ 1,976,723 $ 1,239,852 $ 1,233,390 $ 971,311 $ 848,035 $ 693,095 $ 1,108,311 $ 1,364,987 $ 2,516,399 $ 976,865 $ 1,058,630 $ 928,813
Balance 1,065,621 $ 817,173 $ 409,306 $ 854,576 $ 1,325,241 $ 1,579,731 $ 2,186,800 $ 1,756,159 $ 2,055,284 $ 2,365,806 $ 2,943,531 $ 3,654,064 $ 4,531,261 $ 5,007,716 $ 5,235,357 $ 4,315,341 $ 4,919,679 $ 5,452,224 $ 6,123,372
Levy Impact
2010 Levy $ 4,776,292 $ 4,926,292 $ 5,076,292 $ 5,226,292 $ 5,376,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292 $ 5,526,292
Projected increase in dollars $ - $ 150,000 $ 150,000 150,000 150,000 $ 150,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Percent increase 0% 3.14% 3.04% 2.95% 2.87% 2.79% 0.00% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Assumptions
The legislature allows levy limits to expire.
Levy increases $150,000 for next 5 years.
Anticipated revenue includes interest on balance at 1.65% and state road aid of $60,000 per year.
The $60,000 maintenance money currenIty flows to the General fund for general maintenance items.
All other levy supported spending remains flat.
No change in project schedule.
Based on these assumptions, the road program remains solvent for the duration of the 20 program.
$5,000,000 bond sale in 2011
I
8000000
3
7000000
'
6000000
5000000
i
4000000
3000000
.. _
._._
a
2000000
Je
1000000
Mu+
0
— _ . _.
2010 2011 2012
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2024 2025 2026 ' '2027 2028
- 1000000
- 2000000
Total Revenue Road Projects -_ Balance
Assumptions used
Transfer remains constant at $700,000 per year
Levy increases to accommodate anticipated bond payment
Anticipated revenue consists of interest based on 1.65% of balance and State Road aid of approximatley $60,000 per year
The $60,000 maintenance money currenity flows to the General fund for general maintenance items.
No change in project schedule
Bond payment based on 20 year issue at 4.5% interest.
Levy limit does not apply to bonded debt and anticipate this will remain. Bond substantially used within three years of sale.
Under this scenario, single bond issue of 5 million keeps program funded through 2025 at which point another bond issue will be necessary or
an increase in programmed transfer will be required.
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Beginning balance
$ 1,096,343
$ 1,065,621
$ 5,667,173
$ 5,039,331
$ 5,110,996
$ 5,051,893
$ 4,617,872
$ 4,525,071
$ 3,383,011
$ 2,958,979
$ 2,534,412
$ 2,364,919
$ 2,315,905
$ 2,421,023
$ 2,112,658
$ 1,542,530
$ (188,417)
$ (405,282)
$ (703,912)
Anticipated revenue
$ 78,090
$ 77,583
$ 153,508
$ 143,149
$ 144,331
$ 143,356
$ 136,195
$ 134,664
$ 115,820
$ 108,823
$ 101,818
$ 99,021
$ 98,212
$ 99,947
$ 94,859
$ 85,452
$ 60,000
$ 60,000
$ 60,000
General Fund Transfer
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,003
$ 700,000
$ 700,000
$ 700,000
Bond Issue
$ 5,000,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
Total Revenue
$ 1,874,433
$ 6,843,204
$ 6,520,681
$ 5,882,480
$ 5,955,328
$ 5,895,249
$ 5,454,067
$ 5,359,734
$ 4,198,831
$ 3,767,802
$ 3,336,230
$ 3,163,940
$ 3,114,118
$ 3,220,969
$ 2,907,517
$ 2,327,982
$ 571,583
$ 354,718
$ 56,088
Road Projects
$ 808,812
$ 1,176,031
$ 1,481,350
$ 771,484
$ 903,435
$ 1,277,377
$ 928,996
$ 1,976,723
$ 1,239,852
$ 1,233,390
$ 971,311
$ 848,035
$ 693,095
$ 1,108,311
$ 1,364,987
$ 2,516,399
$ 976,865
$ 1,058,630
$ 928,813
Balance
$ 1,065,621
$ 5,667,173
$ 5,039,331
$ 5,110,996
$ 5,051,893
$ 4,617,872
$ 4,525,071
$ 3,383,011
$ 2,958,979
$ 2,534,412
$ 2,364,919
$ 2,315,905
$ 2,421,023
$ 2,112,658
$ 1,542,530
$ (188,417)
$ (405,282)
$ (703,912)
$ (872,725)
Levy Impact
2010 Levy
$ 4,776,292
$ 4,776,292
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
$ 5,155,882
Projected increase in dollars
$ -
$ -
$ 379,590
$ -
$ -
$ -
$ -
$ -
$ _
$ _
$ -
$ -
$ -
$ -
$ _
$ -
$ -
$ _
$ -
Percent increase
0%
0%
8%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Assumptions used
Transfer remains constant at $700,000 per year
Levy increases to accommodate anticipated bond payment
Anticipated revenue consists of interest based on 1.65% of balance and State Road aid of approximatley $60,000 per year
The $60,000 maintenance money currenity flows to the General fund for general maintenance items.
No change in project schedule
Bond payment based on 20 year issue at 4.5% interest.
Levy limit does not apply to bonded debt and anticipate this will remain. Bond substantially used within three years of sale.
Under this scenario, single bond issue of 5 million keeps program funded through 2025 at which point another bond issue will be necessary or
an increase in programmed transfer will be required.
700000
Assumptions used
Transfer remains constant at $700,000 per year
No increase in base levy
Anticipated revenue consists of interest based on 1.65% of balance and State Road aid of approximatley $60,000 per year
The $60,000 maintenance money currenity flows to the General fund for general maintenance items.
No change in project schedule
Liquor funds transferred in 2011 to Road Fund
Based on this scenarios, the road fund enters a deficit following the 2016 construction season. At this point, an increase in the transfer or bonding
needs to take place.
2025 2026
(3,388,758) $ (5,145,157) $
60,000 $ 60,000 $
700,000 $ 700,000 $
(2,628,758) $ (4,385,157) $
2,516,399 $ 976,865 $
(5,145,157) $ (5,362,022) $
202.7 2028
(5,362,022) $ (5,660,652)
60,000 $ 60,000
700,000 $ 700,000
(4,602,022) $ (4,900,652)
1,058,630 $ 928,813
(5,660,652) $ (5,829,465)
4,776,292 $ 4,776,292 $ 4,776,292 $ 4,776,292
0% 0% 0% 0%
2010
2011
2012
2013
2014
2015
2016
2017
2018
207.9
2020
2021
2022
2023
2024
Beginning balance
$
1,096,343
$ 1,065,621
$ 1,467,173
$ 770,031
$ 771,253
$ 640,543
$ 133,735
$ (33,054)
$ (1,249,777)
$ (1,729,629)
$ (2,203,019)
$ (2,414,330)
$ (2,502,365)
$ (2,435,460)
$ (2,783,771) $
!-anticipated revenue
$
78,090
$ 77,583
$ 84,208
$ 72,706
$ 72,726
$ 70,569
$ 62,207
$ 60,000
$ 60,000
$ 60,000
$ 60,000
$ 60,000
$ 60,000
$ 60,000
$ 60,000 $
General Fund Transfer
$
700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000
$ 700,000 $
One time Transfer of Liquor fund
$ 800,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ - $
Total Revenue
$
1,874,433
$ 2,643,204
$ 2,251,381
$ 1,542,737
$ 1,543,978
$ 1,411,112
$ 895,942
$ 726,946
$ (489,777)
$ (969,629)
$ (1,443,019)
$ (1,654,330)
$ (1,742,365)
$ (1,675,460)
$ (2,023,771) $
Road Projects
$
808,812
$ 1,176,031
$ 1,481,350
$ 771,484
$ 903,435
$ 1,277,377
$ 928,996
$ 1,976,723
$ 1,239,852
$ 1,233,390
$ 971,311
$ 848,035
$ 693,095
$ 1,108,311
$ 1,364,987 $
Balance
$
1,065,621
$ 1,467,173
$ 770,031
$ 771,253
$ 640,543
$ 133,735
$ (33,054)
$ (1,249,777)
$ (1,729,629)
$ (2,203,019)
$ (2,414,330)
$ (2,502,365)
$ (2,435,460)
$ (2,783,771)
$ (3,388,758) $
Levy Impact
2010 Levy
$
4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292
$ 4,776,292 $
Projected increase in dollars
$
-
$
$ -
$
$ -
$ -
$ -
$ -
$
$ -
$ -
$ -
$ -
$ -
$ - $
Percent increase
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Assumptions used
Transfer remains constant at $700,000 per year
No increase in base levy
Anticipated revenue consists of interest based on 1.65% of balance and State Road aid of approximatley $60,000 per year
The $60,000 maintenance money currenity flows to the General fund for general maintenance items.
No change in project schedule
Liquor funds transferred in 2011 to Road Fund
Based on this scenarios, the road fund enters a deficit following the 2016 construction season. At this point, an increase in the transfer or bonding
needs to take place.
2025 2026
(3,388,758) $ (5,145,157) $
60,000 $ 60,000 $
700,000 $ 700,000 $
(2,628,758) $ (4,385,157) $
2,516,399 $ 976,865 $
(5,145,157) $ (5,362,022) $
202.7 2028
(5,362,022) $ (5,660,652)
60,000 $ 60,000
700,000 $ 700,000
(4,602,022) $ (4,900,652)
1,058,630 $ 928,813
(5,660,652) $ (5,829,465)
4,776,292 $ 4,776,292 $ 4,776,292 $ 4,776,292
0% 0% 0% 0%
Transfer ansfer incrase of $75,000 to 2016
and transfer of liquor store funds in 2011
ERINIIIIIIIII
mom
-Total Revenue -Road Projects Balance
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
700000
75000 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021.
2022
2023
2024
2025
2026
2027
2028
Beginning balance 1 1,096,343
$ 1,065,621
1,542,173
996,269
$
1,226,223
$ 1,403,021
1,283,794
$ 1,585,980
$ 845,426
$ 829,523
$ 819,821
$ 1,072,037
$ 1,451,690
S 1,992,548
$ 2,127,114
$ 2,007,225
$ 733,945
$ 979,190
$ 1,146,716
Anticipated revenue 78,090
$ 77,583
85,446
76,438
$
80,233
$ 83,150
$ 81,183
$ 86,169
$ 73,950
$ 73,687
$ 73,527
$ 77,689
$ 83,953
$ 92,877
$ 95,097
$ 93,119
$ 72,110
$ 76,157
$ 78,921
General Fund Transfer 700,000
775,000
850,000
$ 925,000
$
1,000,000
$ 1,075,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
$ 1,150,000
Transfer Liquor Funds
800,000
Total Revenue 1,874,433
2,718,204
$ 2,477,619
$ 1,997,707
$
2,306,456
$ 2,561,171
$ 2,514,976
$ 2,822,149
$ 2,069,375
$ 2,053,211
$ 2,043,348
$ 2,299,725
$ 2,685,643
$ 3,235,425
$ 3,372,212
$ 3,250,344
$ 1,956,055
$ 2,205,346
$ 2,375,637
Road Projects $ 808,812
1,176,031
$ 1,481,350
771,484
$
903,435
$ 1,277,377
$ 928,996
$ 1,976,723
$ 1,239,852
$ 1,233,390
$ 971,311
$ 848,035
$ 693,095
$ 1,108,311
$ 1,364,987
$ 2,516,399
$ 976,865
$ 1,058,630
$ 928,813
Balance $ 1,065,621
$ 1,542,173
$ 996,269
$ 1,226,223
$
1,403,021
$ 1,283,794
$ 1,585,980
$ 845,426
$ 829,523
$ 819,821
$ 1,072,037
$ 1,451,690
$ 1,992,548
$ 2,127,114
$ 2,007,225
$ 733,945
$ 979,190
$ 1,146,716
$ 1,446,824
Levy Impact
2010 Levy 4,776,292
$ 4,851,292
$ 4,926,292
$ 5,001,292
$
5,076,292
$ 5,151,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
$ 5,226,292
Projected increase in dollars
$ 75,000
$ 75,000
$ 75,000
$
75,000
$ 75,000
$ 75,000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Percent increase 0%
1.57%
1.55%
1.52%
1.50%
1.48%
1.46%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Assumptions
The legislature allows levy limits to expire.
Levy increases $75,000 for next 6 years.
Anticipated revenue includes interest on balance at
1.65% and state
road aid of $60,000
per year.
The $60,000 maintenance money currenIty flows to
the General
fund for general
maintenance items.
All other levy supported spending remains flat.
No change in project schedule.
One time transfer of liquor funds in 2011
Based on these assumptions, the road program appears to remain solvent for the life of the program
Transfer increase of $75.,000 through 2016
and transfer 1/2 liquor store funds
700000
75000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Beginning balance 1,096,343 1,065,621 $ 1,142,173 $ 589,669 $ 812,914 8 982,892 $ 856,733 $ 1,151,873 $ 404,156 $ 380,973 $ 363,869 $ 608,561 980,568 $ 1,513,652 $ 1,640,316 $ 1,512,395 $ 230,950 $ 467,896 $ 626,986
Anticipated revenue S 78,090 77,583 $ 78,846 $ 69,730 $ 73,413 $ 76,218 $ 74,136 $ 79,006 $ 66,669 $ 66,286 $ 66,004 $ 70,041 $ 76,179 $ 84,975 $ 87,065 $ 84,955 $ 63,811 $ 67,720 $ 70,345
General Fund Transfer $ 700,000 775,000 $ 850,000 $ 925,000 $ 1,000,000 $ 1,075,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $> 1,150,000
Transfer Liquor Funds $ 400,000 $ -
Total Revenue $ 1,874,433 $ 2,318,204 $ 2,071,019 $ 1,584,398 $ 1,886,327 $ 2,134,110 $ 2,080,869 $ 2,380,879 $ 1,620,825 $ 1,597,259 $ 1,579,872 $ 1,828,603 $ 2,206,747 $ 2,748,627 $ 2,877,382 $ 2,747,349 $ 1,444,761 $ 1,685,616 $ 1,847,331
Road Projects $ 808,812 $ 1,176,031 $ 1,481,350 $ 771,484 $ 903,435 $ 1,277,377 $ 928,996 $ 1,976,723 $ 1,239,852 $ 1,233,390 $ 971,311 $ 848,035 $ 693,095 $ 1,108,311 $ 1,364,987 $ 2,516,399 $ 976,865 $ 1,058,630 $ 928,813
Balance $ 1,065,621 $ 1,142,173 $ 589,669 $ 812,914 $ 982,892 $ 856,733 $ 1,151,873 $ 404,156 $ 380,973 $ 363,869 $ 608,561 $ 980,568 $ 1,513,652 $ 1,640,316 $ 1,512,395 $ 230,950 $ 467,896 $ 626,986 $ 918,518
Levy Impact
2010 Levy 4,776,292 $ 4,851,292 $ 4,926,292 $ 5,001,292 $ 5,076,292 $ 5,151,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292 $ 5,226,292
Projected increase in dollars $ - $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Projected bond payment $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $
Percent increase 0% 1.57% 1.55% 1.52% 1.50% 1.48% 1.46% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Assumptions
The legislature allows levy limits to expire.
Levy increases $75,000 for next 6 years.
One time transfer of 1/2 the liquor funds in 2011
Anticipated revenue includes interest on balance at 1.65% and state road aid of $60,000 per year.
The $60,000 maintenance money currenIty flows to the General fund for general maintenance items.
All other levy supported spending remains flat.
No change in project schedule.
No increase in levy due to bond payment after first year - levy includes bond debt
Based on these assumptions, the road program appears to remain solvent for the life of the program.
I COUNCIL ACTION FORM
Description/Background/Previous Action
The Council adopted a revised method for compensating employees at the end of 2008 and staff worked
with a consultant to develop and receive training on the new model —a performance based system in
3O09. Implementation of the program began at the end of2009/ start of2O10.
The one piece missing is updating the policy manual to conform to the new system. In the initial
discussion, Council also wanted staff to look at other areas in the Policy Manual that might need
updating.
What the Council has before it tonight is essentially two parts of the same item. Part I deals with policy
manual changes and Part || deals with compensation.
Options:
Recommendation
Staff is looking for direction on the compensation issue and policy revisions.
Council Action:
CITY OF SHOREWOOD
MEMORANDUM
(""'Ifty Council
FROM: Briain Heek, (11v
SUBJECT Policy Manual Revisions
The City Council approved changes to the methodology to compensate employees in 2008 from
a hybrid step / merit to a full merit type system. The implementation plan called for development
of the system and training on evaluations during 2009. This training and was completed at the
end of 2009. Individual merit, performance in the position and the successful achievement of
individual expectations determines an increase in compensation for 2011, if granted by the
Council.
To ensure there is equity in the system, the policy on compensation needs revision so it reflects
the merit based system and not the hybrid system. Staff presented suggested language
changes to Council at the end of 2009. The council reviewed the language and wanted to have
more discussion on the policy implications as well as for staff to review the policy manual for
other possible changes.
As I went through the policy manual, I identified the following areas for revision:
1. Page 6 — the organizational chart needs updating.
2. Page 9 — there is reference to a pre - employment physical for all new employees. This
requirement is applicable to Public Works, but not necessarily all staff.
3. Page 16 — Policy 4.09 related to use of communications resources. The Council adopted
a policy on use of mobile data devices; however, this policy was not merged with policy
4.09. 1 suggest a policy that covers cell - phones, mobile data devices, laptops, desktops,
e -mail, phones, social media sites, e-mail between council members, etc. I have a model
policy I want the Technology Committee to review.
4. Page 30, Policy 7.01. The Council discussed providing incentive pay not to enroll in the
city's heath care plan. The current policy is to provide $100.00 to employees who
receive coverage through a spouse /partners plan.
5. Page 32, Policy 7.08. The City provides reimbursement to employees who belong to a
health club, participate in health education classes, diet or nutrition programs, etc. The
employee is eligible to "cash in" 2 hours of sick leave for up to $40.00. Reimbursement
for a portion of an employee's monthly health club dues is dependent on visiting the club
I did not see much more in the manual that is out of date or needs significant up dating. This is a
document that needs regular review to ensure the policies and procedures remain consistent
with changes in state or federal law.
With the exception of the computer use policy, suggested changes to the various policies are
attached.
Compensation
The compensation procedure and policy requires a bit more discussion than the other changes.
Things to consider in this discussion include:
• How often is a market analysis conducted?
• How close to the market average does the city want to be?
• Does the city use average low, average median, or average high compensation.
• Does the city want to provide for compensation above the market average, as is now the
practice?
• What amount does the City set aside annually for performance increases.
• What level of increase or range of increase should be applied for employees who are
successful in meeting expectations, completing goals, etc?
• What level of increase or range should be applied for employees who exceed
expectations, are successful in achieving goals, etc?
I am providing the document I prepared for Council late last year regarding compensation, a
document prepared by Council member Woodruff on his suggestions, and performance criteria.
3.0 EMPLOYMENT
All new full and regular part -time e- o,�- Llubl i s k"( ks c inplo es shall be required to have a
job- related physical examination after a conditional offer of employment has been made. The
cost of any such examinations shall be paid by the City.
Job applicants seeking employment for Commercial Motor Vehicle Driver positions shall be
required to undergo testing for the presence of drugs after they have received an offer of
conditional employment.
At any time, employees may also be required to undergo drug and alcohol testing in accordance
with the City's drug and alcohol testing policy (see Sections 3.09 and 4.13).
3.07. Drug and Alcohol Testing for Positions Requiring CDL
Employment offers will be made contingent upon taking the required test and withdrawn in the
event that the test is refused or there is a verified positive test result. If the employment offer is
withdrawn following testing, the applicant will be informed of the reasons for the withdrawal.
The City's complete Drug and Alcohol Policy is attached in Appendix A.
25910180
-9-
3,0 EMPLOYMENT
Subdivision 1. Duration and Purpose
All new, rehired, promoted, or reassigned employees shall complete a six (6) month probationary
period upon assuming their new positions. This period shall be used to observe the employee's
work habits and ability to perform the work that they are required to do.
Subdivision 2. Extension
An employee's probationary period may be extended for an additional six (6) months by the City
Administrator.
Subdivision 3. Termination
The City Council may terminate a probationary employee anytime during the probationary period
if in the City Administrator's opinion the employee's performance indicates that the employee is
unable or unwilling to perform the duties of the position satisfactorily or that his /her work habits
and dependability do not merit continuance in the position. The employee so terminated shall be
notified in writing of the reasons for the termination and shall not have the right to appeal unless
he /she is a Veteran, in which case the procedure prescribed in Minnesota Statutes Section 197.46
shall be followed.
Subdivision 4. Completion
At the end of the probationary period, the City Administrator will recommend, with Council
approval, one (1) of the following actions.
1. Extension of the probationary period;
2. Regular Employment; or
3. Termination.
Subdivision 5. Vacation and Sick Leave
During a new or rehired employee's probationary period, vacation leave and sick leave shall be
earned, but the employee shall not be allowed to take vacation until after completion of the
probationary period. Sick leave may be taken during the probationary period not to exceed the
sick leave time earned.
Subdivision 6. Performance Reports
c ,io *( ) employee's supervisor shall conduct a rcviow at
three (3) m onths. The revi sl tall_b e docum ented and oudine the areas wherc_tthe emp loyee is
suc,cccdim4 and idcntif, ueas . tlr rt ggire rdditional,u_;unins>_.at and/or inwrovemelt. Belpre the end 11-11
of six (6) months. the sup shall submit a written report to the City Administrator of
thed ocurrienting the supervisor's observation of the employee's performance, the supervisor's
judgment as to the employee's continued satisfactory performance, and whether the supervisor
intends to retain the employee in this position. The supervisor of a probationary employee shall
discuss the employee's performance with the employee. Copies of the written performance
reports shall be submitted to the City Administrator and the employee.
Fore :ed
2591018x2 - 10-
4.0 RESPONSIBILITIES OF EMPLOYEES
4.04 Use of City Communications Resources 1 Comment.:[cl]: f suggest this be deleted and
:replaced with a more comprehensive policy
Electronic Mail (e- mail), voicemail, telephone, on -line subscriber services and the Internet are all
information management and communications tools that are important parts of the way that the
City operates. In order to ensure that the City complies with the business and legal requirements
created by the use of these services, we have established the guidelines listed below to assist each
employee in determining the ways in which these tools should be used.
E -Mail. Voicemail and Telephone
The City maintains computer, e -mail, voicemail, and telephone systems (our "communication
systems ") to assist in the conduct of its business. It provides the following guidelines for the
authorized use of these communication systems.
Although the City recognizes that there will be incidental non -work related use of
communication systems, these systems are intended to be used primarily for business purposes
associated with the performance of each employee's job. Any use of these systems for non -work
related purposes beyond limited incidental use, is prohibited.
Prohibited Uses
The use of our communication systems for the following purposes is strictly prohibited:
1. Any communications which would violate the City's Offensive Behavior policy
including abusive, harassing, vulgar, obscene and offensive communications;
2. Disparaging communications or jokes which are based on race, national origin,
marital status, sex, sexual orientation, disability, age, religion, or any other characteristic
protected under federal, state or local law; disparaging communications include communications
which disparage or defame the products or services of vendors or competitors;
3. Communications of any copyrighted materials, trade secrets, proprietary
information, or any other highly sensitive confidential information, except with management
permission in the course of your job;
4. Solicitation of employees, including solicitation for commercial ventures,
religious, social or political causes, fund raisers or outside organizations.
E -Mail Messages Referring to the City
Any e -mail messages sent externally, including messages placed on the Internet, which
refer to the City or its services in a way which could be interpreted as stating the organization's
position, policy or viewpoint must be approved in advance by the City Administrator.
2591068v2 - 16-
7.07. Section 125 Pre -Tax Benefit Program
All regular employees of the City are eligible for the Pre -Tax Benefit Program. The program
incorporates three (3) separate plans: The Pre -Tax Premium Plan, the Dependent Care
Reimbursement Plan, and the Health Care Reimbursement Plan. To be eligible for any of the
three plans, the employee must submit the amount they would like converted from their salary to
the Plan Administrator (Finance Director) before January I of the upcoming year. Only those
employees eligible for health and other insured benefits are eligible to participate in the Pre -Tax
Premium Plan. The City will allow the maximum amount in accordance with federal law. At the
end of each Period of Coverage, any Pre -Tax Premium Salary Conversions of a Participant which
have not been applied as employer contributions shall be forfeited to the employer; likewise, any
amounts remaining under a Participant's Health Care Expenses or Dependent Care Expenses
shall be forfeited to the Employer.
7.08. Health Management and Wellness Program
In an attempt to promote health management, wellness, and fitness, the City of Shorewood has
implemented a voluntary program for its regular full- and part -time city employees. Employees
may exchange up to 2 hours of sick leave for participation in programs promoting health and
wellness, up to a value of $40.00 per month (1 hour of sick leave equivalent to $20).
1. Employees may convert accumulated sick leave, provided that the employee maintains a
sick leave balance of eighty (80) hours at all times, to pay for the employee's health and wellness
program, such as:
• monthly health club membership dues, it ftttcnding at- lei +uk duriw2 -d month,
• class fees or monthly dues for:
➢ smoking cessation
➢ diet and nutrition
➢ substance abuse
➢ stress management.
2. For example, on a monthly basis, the amount of sick leave that may be used for monthly
health club membership dues may be up to and no more than 2 hours per month. For the purposes
of this program, 1 hour of sick leave is equivalent to $20.00. The amount of the reimbursement
shall not be more than the actual amount of the employee's membership dues.
3. The Finance Department will reirrrburse employees for membership dues on a monthly
basis upon receipt of a properly completed form to be provided by the Finance Department, and
upon receipt of evidence of payment by the employee to the health club or wellness program.
The reimbursement will be Federal, State and FICA (if applicable) taxable.
25910180 -34-
8.0 TIME OFF
8.03. Sick Leave
I. General Sick Leave Rules
A. Length of Service /Earnings Rate
All frill -time employees shalt earn sick Ieave at the rate of one (1) day (eight [8] hours)
per month of employment after the first full calendar month of employment. If the
employment date is the 15th of the month or prior, one fill day of sick leave is earned. If
the employment date is the 16th of the month or later, the employee must wait until after
the end of the next calendar month to begin to earn sick leave. Sick leave may be taken
during the probationary period not to exceed the time earned.
Part-time employees working more than 20 hours per week, but less than 40 howl per
week shall earn sick -leave on a pro -rated basis. Sick leave will be granted in not less than
one hour units, which is to mean that if any time less than one (1) hour is used, one (1)
hour will be charged.
The maximum sick leave earning limit is 800 hours. At: the Ln < f of OVUP; ' F -of
the acer+ed +le++re hf>uta+r cr�af 8(#0 Iu+rnry bt etxc tctl t <�t} r bn�t +ts.
°a, - utiorr 1 WF]Rkination ot'001cr
bc+iits. Upon termination, accrued sick leave will be paid as provided in Section 11.02.
B. When Taken
Employees must inform their supervisor at the earliest possible time when they will be
absent due to illness or injury.
Sick leave shall be granted only in case of necessity and actual sickness or disability
injury to the employee or for dental appointments and physical examinations. Dental
appointments and physical examinations must receive prior approval by the employee's
supervisor. Sick leave is also granted in the case of attending to the employee's
spouse /partner or child (see Section 8.04). Employees may also take vacation or leave
without pay for the purpose of attending to their spouse /partner /parent or child (see
Section 8.06 FMLA Leave).
C. Worker's Compensation
In case of disability caused by sickness or injury and covered by Worker's Compensation,
the City will compensate the employee the difference between their regular base pay and
that received from Workers' Compensation payments, but never for a longer period than
their accumulated sick leave. In such case, the time deducted from accumulated sick leave
shall be in the same amount as the proportion of wages paid by the City as to the entire
base pay of the employee. No sick leave will be paid to employees while actually working
for others.
25910180 -39-
Compensation thoughts
Employees will undergo formal evaluation at six and twelve months (generally June and December) and
will have informal discussions with their department manager at least every quarter.
The formal semi - annual meeting is to provide more complete and formal feedback and information on
how the employee is doing related to their expectations, goals, objectives, priorities and projects. The
department manager will identify for the employee ongoing concerns that have not been adequately
addressed from the informal discussions of other formal evaluations. The formal evaluation is
completed in writing and endorsed by the employee.
Ratings
Employees will be rated as — Meeting Expectations, Exceeding Expectations, or Not Meeting
Expectations.
Not Meeting Expectations means the employee has not completed projects or tasks on time or within
the guidelines established by the department manager and employee and did not have or report to the
department manager issues and problems that prevented or delayed the completion of the task or
project. The employee has not made improvement on issues identified by the department manager
during informal discussions. An employee may also be "downgraded" by having or exhibiting a poor or
negative attitude about the work, other employee's, Council, etc; not responding to residents and
others in a timely manner; shows general disrespect for residents, council, other staff; does not seek to
improve their knowledge, skills, or abilities; reluctant to participate with others in problem solving,
adheres to the "old way" of doing things, is a general road block to change and improvement; etc.
Meeting Expectations means an employee completed their projects and /or tasks and successfully met
the expectations as agreed between the employee and department manager. An employee can be
considered as meeting expectations even if the projects and /or tasks were not completed on time as
originally anticipated if they clearly communicated the potential delays and what they were doing to
overcome the delays. An employee who meets expectations will have a generally positive attitude;
address team members directly and professionally when there are issues, participates in collaborative
problem solving, completes assignments in a timely manner; etc.
Exceeds Expectations means the employee not only completes the projects and /or tasks assigned and
meets the expectations identified by the employee and department manager, the employee is also self -
motivated and seeks creative solutions to overcome issues; is a self- starter and self motivated. The
employee will seek out opportunities to improve their skills and abilities on their own; will participate in
group problem solving and is willing to take measured risks and offer new ideas and ways of operating.
The employee maintains a generally positive attitudep encourages and seeks opportunities to assist
team members, is timely in their response to requests from the public or other staff; etc.
Potential Pay Increases
1. In the first year an employee achieves Exceeds Expectations, they will received a lump sum
payment equal to 1% of their base annual salary.
2. If an employee achieves Exceeds Expectations in two or more consecutive years, the
employee will receive the base increase awarded to those who Meet Expectations as well as an
additional 1.5% on their base.
Adjusting for Market
The City will conduct a survey of like positions using the League of Minnesota Cities salary survey tool in
the odd year. The survey shall be completed by September of the year. The city's salary table will be
adjusted as necessary using the average maximum wage for each position as the "market" rate. The
starting rate will be 75% of the "market" and the maximum attainable salary shall be 110% of the
"market ".
This analysis is done to ensure the city's salaries are competitive with the general market for like
positions. Market adjustments will be made only for employees whose actual wage falls below the
minimum and the employee has an evaluation rating of Meets or Exceeds Expectations and the increase
provided does not bring them up to the minimum wage.
6 ®0 COMPENSATION
6.01, Wage Administration Plan comment [C2]: Needsrevision to comply with
the new m of compensati
The salary structure of the City of Shorewood is based upon the following:
1) Competitive wages for the labor market
2) Compliance with the Minnesota Pay Equity Act (also known as the "Comparable Worth
Act "), to insure equitable compensation relationships among positions within the City
3) Providing incentive and recognizing good performance
4) Providing appropriate flexibility in administration
1 Classification and Compensation Plan
A classification and compensation plan was adopted in July 2006. It identified the job points for
each position and established the pay relationships among them. Data from a survey of other
cities' salary ranges established the market for each position's compensation. By combining the
internal relationships and external salary ranges, pay ranges were established for each City
position.
The compensation system is a "pay band" system. A salary range is established for each
position, with the beginning of the range at 76% of the top of the pay range (also referred to as
the "market" pay). i #tat all al -the bet-innillL) of the +angc and
eons tentl +,�pErfHrnr�- ai- t�f��tiE���= I�vc= is -�vi ll- fhl�3 -r�� {ter th€; tt>,� erl= tl�- t,t�r�rz }+��c
itt-{+ s�- y, vgtr:�- 1- 1= t -;�- (mot <rl- rtbai-E {h�ttf+t = tl r�
ernph)yee -eO nsistently pet- tcorrntng,li-` neets expeetati$n9' levck will atlaill the, top ol-the pad
range-, +ret Nlovemcnt throuL2h th rat ge i based o a n emt l o` cc's pe rli >rmanc c in thy:
L) ition.
lspc- �t�- r��l�i+ag- th�tc+}�- c31 =t11�- }may -r�� +tit=- an- E- rt�pio��s- s�tlat,� ttt��- b<-' t+ �� +r= as�l- <st�ly-- ba=-- E= �;f3netr
ofljtt srrE- atttht�t= i- totl- l� -�,r' - '�r<- ,- �n ur�:il:r�r -b;9 =- per= forrr�ir�- ++t- a- n�:�ra�= that�x(
An employee may move through the pay range more quickly if, on the basis of the annual
assessment, performance exceeds expectations.
t mplt>iees -�a hti rcael� the itojl « I the pad, range-and per -Form in -zr manner .xLeeding cxlzecler(iot2s
a re- efig +b1e46r;tfldit}otla4 -,a ary tin nts ovUt i+t} t- ol-up4o -a nTaximu114-44 It }`-'4r- obtx -c-the-top
o (=tl e-ffr�ge.
3. Budget Considerations
The City Council tt��r� atrthorarc e�eorlomr�- adJustul ent� Iioln tinter ( +a tiaT c: wltii h will trt v� the
�a1a}•� - r< t+=;- uc�ifi3rn }l�r- (t3t�eat'lr- pt�s+tiast:- e�rrtE =i }- mzrv��l se- ��i4hi ri-i t�- ttrrthority- rrhrlFx;
dLti�; ions- t�= grtrEl+ rig- the- t�ttd±�e�tthat- tn;�y- retard the- alv�li���F�l= eu�pleye� tt3- t33c�vc- thr{ >t }x_ =h�h�ir
25910180 -26-
alaat rr k� es or to- reatli cp r€ >rt aa€ -bas ;efp- ° ff10 effl RP,,,:ill dete1111i IIC dttri11a the oitclgCl
p ,_Eo ho c- _m uch. if a m . rnollcv will he set a side for Tc rf 6rrzna nc e incr t wc s 16 1 1101) un60 StalV.
Increa c rtbrrn trice will he allottc.d-in accordance n -ith this aolicv,
917 3
6.01, rage Administration Plan, continued
4. Performance Assessment
Each employee's performance is tort ally to-hw assessed by his /her supervisor at- leai�t- annually_,
arac m x x s ue+cly th thit- layr +tt apt Y2+s - -l:or new employees, a
performance assessment ,,. sue €is conducted at the end of the six -month probationary period.
The purposes of the performance assessment are to:
• Deterurirtz -how w -elf all cstnployee is perfinuing, in as,,igned artati of rusponsibilit.t as
rrtttincd in lri fiE+ pt it >r3 -deg i} ti�tn 1 y :s
flow \� cll the: cni k ivee_is p ill
assumed ar o ns mutualh cstablrs the
ernpl_o�ee <trcl superb -sor,
• Provide a formal opportunity for two -way communication between the supervisor and
employee about the employee's performance.
• Identify areas or items for improved performance; for personal and professional
development; and specific work projects or priorities for the next assessment period.
• Identify areas where responsibilities have changed and /or deserve to be re- evaluated.
There is a form for the assessment of performance for each position. These forms become a
permanent part of the employee's personnel file. The supervisor's and employee's assessments
will be submitted to the City Administrator when completed. The results of the total
performance assessment will be used when determining salary adjustments. The City
Administrator will review the assessment for purposes of consistency in performance assessment
and salary administration throughout the organization.
5. Perf6r Ad
In order to maintain market cons petitkeness, the salary r for each clas Gvi be
corn rTv to the mark even grit tive P osition classi where thr � ttG- -(_t cragu
imrimum salary frtr� cl rssilic rtion) is,at_95`Yo or lower ti�il.l_re ei�-c._rn tdju,stm nt_to hring the
mar rate on the sc to l of th avcra <ae mar ket rate. The balance of th s cale wil adju
u
accordin g '. The ad'u�ertt of the sc w ill not inc_r lse tile _Cu re_nttt i_ of st tf'f irtirt_thc
classification hcillu adtu,ted.
Staff is rated on a three point sc I -does n ta tions. 2_mccts expectations and
3 exceed _expc<t 16011s C;inn c t rtc.d include tccomplishment ol_,tut4d ctl?jcctr� es_
enctal ic> task,,. antt ggn atti tude:. Sonic of the items oil the e a luation are_snn� to eclaas
a s/ liiil th at is, the ertr» ce can ac ccimd�_L th at<tsk or the c annot .
JOrmatted Left
25910180 -27-
c p 1 Formatted. Left, Indent First Tine. 6, 5'
V 1)u not t e 4Gt /lions Nlea_ns the emI110,Cc Ills 110t CO )Ilte f nrc) eel or 1�lsks _.
on lane or within (lie uidelines estalllrbhecl by the d t ) ittalent rrl ul gur and em to ee and did
not hzne or report tom) [tie d:p) It SSrlc S_<lntl )t "C )l latn> I�lt1t_p)rC ,nle_i O t klV (Ill e
cotllp(etio.f _E�Cthc task 1)r" project. I lie clnpnlotle ha:, not, rn.lde irnprovc:mcrrt Etu Issles identified
by the cieL) artn?ento� In l et clue irl r arrsl_al ditic ussion ln_enlllloEee_mt< also be
"doyyrt eil_d' 1? Ile4irle €>t= exhibilim a p;>z>ctr or n allitUdC' 'lf7t }ta_t the to t)rl other
en?plo} s, f ouneil et4, gotr so r1e61�tla u) r.s ...... and o thers til r till l� 11 lei': shows enc tal djsre c t for re council, other staff" does not seek to llltniove their knowledge.
skills. or abilnre I arlda rte fill oll rs in problem soling adheres to the - old
egad _ oE d<� n� ttn lgs is a �Cllertfl road block to Chi lie �1ld iFuDrOv nlent etc.
B. Meets E xpe ct 3ttOr1S Means an ec11ptoVe Cann (p etcd their pro El'Cts ar Or tasks and
Formatted: Indent: First line:
successfcrilV met the exputations as a ;reed betwee the em lfoyee and ciepai tmE_itt manaper..An
employee can be co nsidered as meeting expectations even if elie�?r�ecgs and/or tasks were not
cone Ieted on time as orighlaily anticipated if they clearly communicat the potential delays an d_vvinat
they_were cloin to overcomg the_del,� s. . em }�_.a eats expectatioris_wiil hay a,ne i ^ally
positive a ttitude; ad dress team_memt)ers ciirocti an d pafessionall�wPlerl thGrc are issues,._
in collaborative problem solving completes assii2ivnents in a t imely
Formatted: Left, Indent: First line: 0.5'
C Ex ceeds expectation Means s tine employee not only completes the pr"OieCtS and /or tasks
�„ Formatted Indent: First line: 0.5"
assigned and meets tine expect lions identified by th e. employee and department manager the
l m e is als self - motivated and seeks creative solutions to overcome issues, is a self-starter and
self motivated, The employee w ill seek out opportunities to improve their skills and A bilities or) their
pwn \ , L ill partici ate,in roupprobl m aiid to take measured risks . and offer . new ideas
artd wa _s of opera Cinn The ernplo rt�ainta aeileraily pos,tiyttittpcpe enccu€ amt s and se
opportunities to assist team members; thnely in their respons to re ne sts fro the publ or other
sta.ff, etc,.
_
Formatted Left, I ndent: First line: 0.5"
s n ot. l eet e x pecta tions " vN ill [lot receive it)
'does not; lu4et _
i'dnployees who receive an ov erall rating of �l
I Formatted: Left _
CI1
increas in c onl pion for that er ro A _ n to tl�iS G lte90rN will develop i
w -ith his/her supervisor a complete a detailed yvorlc pl tis ith s )ccilic berlehn and tin -line
benchmarks yaill be slc llie b'ca C(lc su tlry_iso) ' 11 r c1 FILDlerld the employee he palwIced_- -
mob atlon ulry Status r have lu sher pot? i r rn extend 11 is [lie recommendation. the
sup ervisor and employee must eoulp}cte a d etdll cti w or 1. pl yl n th s [ic ( n }vharks and ti me_ -
Ir11 benchmarks vYlll he aetllePc { { . Ill s011le IliSt llrCtS = 1 - np�lo t tiA'ht) is tE:11t Cf lti ='C {O 3 In Ot
111i:(a expect rtion - s" \1 ill Ili1,Ve thCrt' Ll „IlhIC1w "nll'tlt \vith the City terminated,
)::',rlljllt ,14'ecS 1'<hC) ile 11141'C. file rdt111 ��__Illt'Ulti eti' 1c.'C aC1Un S lu !'C,4t,l t'c_i!1 1nC,l i:£IS4 II'1 COr)4115<LIIOIl
to their h a p iy " " pli_ll la t,hG lnl()Ulil 4St ablished bl'_t Council in Ille 1,UCl�et, Sy IIIGh . f?4I1er'x 11
„C
equal to the increas4; in the C unsumer ('rice Index (C`P for the A�1i�1n e<linolr�' 4t P �lul st atistical
area as re ) orted bb, th, tt3ure nl ilt_i__ahor SWlist.ics,
LIl1p)kn,_ees Who achieve tile: ra ting _"exceed cxriectutioils will receive In increase to their base
yy'a e stn1ilar to the Cn1171o) , Ce�`i who melt ex )C4tctt_I oils IF) ad tLire lust little an emp)lo \4'.e
tiutll ent eClunl ltl I".o of lhC ?tl "Sit lib_ �n
achieves this r1tlg 'tl they will receive r 1111np1 pl ,) "w
ei�lk yy ho ooh c�cs Al. s lci_el o Cte1 _fol_n7 1 1 Ce ir l t\ N10 Or•_M l; orlssccll y_ _]ells, ,Lill have till_
additional P,) added t their hike_
2591018,,2 -28-
; rt__empRoVice who ,s (he Inoxiia�ct�t ol�tlle scale �mcl,,,achieve th t�<ttitl , of, ,t.s cx xc cf4_
e alctatio w ill €�ecei� e t heir c�n ill t he: t�6rm o f . a si el lum 5i.i �tly igh��t� the
incrc t;e will not be added to the -c mplove e's ll lsc `val,e ti u f_s.Ec h time citi the mttxinitt - nt oiI_tile
scihir scale_ exceeds_ the CaliA rec',._ratcoftxx�..
2591018v2 -29-
Compensation Policy for Non-union Staff — draft not for circulation, 12/12/09
Dick Woodruff
Employees ranked as not meeting performance expectations shall not be advanced in the
salary range or otherwise receive additional compensation until they at least meet
expectations.
Council shall establish annually, during the budgeting process, a pool of dollars to be
allocated to performance-based salary base increases and one-time lump sum payments
for exceeding performance
The annual pool of performance compensation dollars shall be allocated on a pro-rated
basis to staff by the City Administrator as stated herein.
Council shall specify what, if any, portion of the pool shall be awarded to the City
Administrator based on market rate adjustment and the Administrator's performance. The
remainder of the pool shall be eligible for award to staff. The total dollar amount awarded
shall not exceed that approved by Council, but may be less than that approved if market
rate adjustments and staff performance does not warrant it
The semi-annual salary range review shall result in an adjustment of the existing market
rate for each job classification if the City's market rate is below the actual market on a
position by position basis. The bottom, mid-point and top of each salary range shall be
adjusted upward by the dollar amount increase required to get the existing market salary
to the actual market.
Following the semi-annual salary market rate review and at the next annual compensation
increase date, usually in January, staff meeting or exceeding expectations shall receive a
base salary increase equal to the lesser of the percentage of increase of their salary range
market rate or four percent (4%). This is a market rate adjustment.