3.6. SR 05-27-2003River
MEMORANDUM
*Item 3.6.*
TO:
Mayor and City Council
FROM:
Lori Johnson, Finance Director
DATE: May 27, 2003
SUBJECT: Consider Memo to Elk River Municipal Utilities Commission
Regarding Compensation Package
Councilmember Dietz asked that this item be placed on the agenda as follow-up to last Monday's
Council discussion regarding the recent compensation package approved by the Elk River Municipal
Utilities Commission for its employees. The Council agreed at that time that Councilmember Dietz
would draft a letter from the Council to the Utilities Commission regarding this issue. Attached is
the memo from Councilmember Dietz outlining the concerns of the City Council with the
compensation package approved by the Utilities Commission for water and electric department
employees.
Action Requested
The City Council is asked to consider the attached memo from the City Council to the Utilities
Commission. If the Council wishes to make changes, the memo should be removed from the
consent agenda and changes made as appropriate. If the Council concurs with the memo as is, it will
be forwarded to the Utilities Commission.
S:\COUNCIL\Lori\Utilitiespackagememo.doc
May 27, 2003
TO:
FROM:
R.E:
Elk RiverlMunic[pal Utilities Commission
Elk River[ City Council
Compensation Package
Commissioner Dietz wegt over your new compensation package for Elk River Municipal
Utilities at our May 19, 2003 City council meeting. It included:
1. A rest-rucmring of the health and dental plan, providing increased benefits.
2. A 3.77% ,wage increase for all employees
3. A matching contribution to a 457K plan.
We understand that the ~'°taI package figures out to be between a 5-6% increase.
The Council feels that tats increase is excessive considering the current economic times. Due to
the state's problems, it'~ possible that city employees may not receive any increase on 3'anum'y I,
2004.
We realize that the utiliU, es is a separate branch oftlx City, but many of us have a hard time
differentiating it from t~¢ rest of the city government.
The Council is ultimatel~ responsible for the Utilities Conunission and we are coukernec[ with
the ramifications ofyou~ decision and axe not pleased with it.