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Sponsored by: Hunt <br /> llCITY OF SEWARD, ALASKA <br /> RESOLUTION 2016-046 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, RESTORING EMPLOYEE MERIT INCREASES AND A ONE <br /> PERCENT BONUS FOR NON-UNION REGULAR EMPLOYEES, AND <br /> APPROPRIATING FUNDS <br /> WHEREAS, the City of Seward 2016/2017 budget saw a nearly 13% reduction in the <br /> General Fund budget, largely the result of State budget cuts and uncertainty surrounding sales tax <br /> revenues; and <br /> WHEREAS,in order to balance the budget,employee merit increases and proposed cost of <br /> living increases were eliminated from the budget in both 2016 and 2017; and <br /> WHEREAS,merit increases were also frozen in 2014 and 2015,while employees received <br /> 3% cost of living increases in both 2014 and 2015; and <br /> WHEREAS, the City Council agreed to consider reinstating some level of employee pay <br /> increases following receipt of the City's financial performance results from 2015; especially <br /> considering whether sales tax revenues came in higher than projected; and <br /> WHEREAS,the General Fund ended 2015 with a positive net increase in Fund Balance of <br /> $321,309, and the administration has recommended restoring merit increases in 2016 to those <br /> employees who are eligible and providing a one percent bonus to all non-union regular employees <br /> which shall not add to employees' future base year salaries. <br /> NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA that: <br /> Section 1. Employee merit increases are restored for 2016 for all eligible employees who <br /> meet the criteria as established in Seward City Code 3.15.035. Step increases,which require that an <br /> employee"...must continue to demonstrate satisfactory service of a progressively greater value.Step <br /> increases are not automatic based upon longevity and are awarded only where the department head <br /> feels the employee has demonstrated service of a progressively greater value,progressively greater <br /> responsibility, and performed what normally would be expected for the city during the past year. <br /> Satisfactory performance alone shall not be grounds for a step increase." <br /> Section 2. Employee merit increases shall be effective the first day of the pay period <br /> following award,shall pertain only to the current position in which an employee is serving,and shall <br /> not take effect retroactively. <br /> Section 3. All non-union regular employees who are in regular employment status as of <br /> August 6,2016 shall be eligible for a bonus at the rate of one percent of his/her regular annual salary <br /> based on their regular rate of pay, excluding acting pay and overtime, on August 6, 2016. The one <br /> percent bonus is offered in lieu of a cost of living increase, such that the bonus will not add to the <br /> employee's base salary in future years. Such bonus shall be payable in the pay period which ends <br /> August 6, 2016. <br />