Title
Non-Union Pay Increase
Salary Increase
History
There are 59 full time, non-union Village personnel. The Village Board last authorized a 2.0% cost-of-living (COLA) increase in Spring 2009. In the two years since this increase, full time non-union personnel incurred five furlough days in FY 2010, as well as a substantive modification in health benefits provided by the Village. Among the health benefit modifications, the Village changed its health benefit strategy to encourage more consumerism and has priced its employer-provided benefits accordingly. As a result, the Village places emphasis on its health savings program, which encourages the very consumerism that is being emphasized.
As a result of these changes, and in consideration of the 2 years since the last COLA adjustment, staff proposes a 1.5% increase effective May 1, 2011 for non-union staff and June 1, 2011 for executive staff, as well as a $750 health benefit adjustment payable on or about July 8, 2011. This adjustment will not be added to the salary base, and thus will not factor into future COLA increases.
The attached spreadsheet illustrates the impact of the proposed COLA and healthcare adjustment increase on the overall compensation costs for non-union personnel. As illustrated, and with reasonable assumptions pertaining to healthcare trend, the proposed increase remains within a 2.5% inflation baseline tied to total compensation.
Financial Impact
Funds for this item are budgeted for FY11 in the General and Water & Sewer Funds. The total impact of this increase is $90,211.48; the total amount budgeted for this increase is $91,922.97.
Recommended Action/Motion
I move to approve authorizing a 1.5% cost-of-living adjustment for all full-time non-union personnel effective May 1, 2011, and for all executive staff effective June 1, 2011;
and
Approve authorizing a health care adjustment incentive of $750 per employee within the non-union group to be paid on or about July 8...
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