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HomeMy WebLinkAbout2011-129 Council ResolutionCouncil Member Roeser adoption: introduced the following resolution and moved its CITY OF LINO LAKES RESOLUTION NO. 2011-129 RESOLUTION AUTHORIZING A LUMP SUM PAYMENT FOR EMPLOYEES WHEREAS, the City Council recognizes the diligent efforts that employees have made in order to provide excellent service to the residents of Lino Lakes notwithstanding staff reductions the last three years; and WHEREAS, City employees did not receive a wage increase in 2011; and WHEREAS, the City Council wishes to provide year -end monetary compensation of $200 for active full -time employees and a prorata payment for part -time employees who have been employed with the City as of July 1, 2011; and WHEREAS, under Minnesota Statutes, Sections 412.11 and 145.46, the Council may fix the compensation of all City employees and expend funds as necessary to support an employee recognition program; and WHEREAS, the City Council has determined that this lump sum payment meets the criteria of "public purpose expenditure" according to the guidelines established by the courts; and WHEREAS, the lump sum payment will be considered wages for tax withholding purposes, employees may elect to have the payment deposited directly into a health savings account (HSA) or deferred compensation account; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lino Lakes hereby authorizes a lump sum payment of $200 as additional compensation for active full -time employees and a prorata payment for part -time employees who have been employed with the City as of July 1, 2011, to achieve the Council's objective of recognizing employees for their efforts to continue to provide excellent service and reduce costs. Adopted by the City Council of the City of Lino Lakes, Mi December, 2011. ATTEST: his 12th day of Julie : artell, Ci y C erk einert Mayor The motion for the adoption of the foregoing resolution was duly seconded by Council MemberRaf f erty • and upon vote being taken thereon, the following voted in favor thereof: Gallup, Rafferty, Roeser, O'Donnell, Reinert The following voted against same: none • • AGENDA ITEM 3D STAFF ORIGINATOR: Jeff Karlson, City Administrator MEETING DATE: December 12, 2011 TOPIC: Year -End Lump Sum Payment VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to consider approving a resolution authorizing a year -end lump sum payment for employees. BACKGROUND The City Council discussed the idea of providing a lump sum payment to recognize employees for their diligent efforts to provide excellent service to Lino Lakes' residents in spite of staff reductions the past three years. The lump sum payment would be considered wages for tax withholding purposes. Employees could be given the option of having the payment deposited directly into a health savings account (HSA) or deferred compensation account. Under Minnesota Statutes, Sections 412.111 and 15.46, the Council may fix the compensation of all City employees and expend funds as necessary to support an employee recognition program. The total cost of providing this additional compensation at $200 for full -time employees and a prorata payment for part-time employees is $13,000. RECOMMENDATION Approve Resolution No. 2011 -129, authorizing a lump sum payment for employees.