Compensation changes coming for city employees

A new initiative launched by the city of Middletown will change how its employees are compensated.

Performance Based Compensation will be offered to employees represented by the city’s unions as an alternative to a cost-of-living pay increase. Instead of increasing employee compensation through cost of living pay raises, employees would receive an annual one-time payment based on prior revenues calculated by the Finance Department. Those one-time payments would not increase an employee’s base pay, according to City Manager Doug Adkins.

“As the economy slowly recovers, Middletown is discovering a new normal, a reset, if you will, of our economy from the pre-recession status to the present economic status of the city,” Adkins said. “It is extraordinarily important that we understand the new normal and respond to it in a responsible manner.”

He said increases in tax revenues and other indicators of the city’s economic success will define the “new normal.”

Employees will continue to receive step increases in their base pay, according to Adkins.

The performance based compensation would take effect at the end of March and would be paid out to employees sometime before the end of May, Adkins said. The final total will depend on the public safety unions participation, which are currently in negotiations, he said.

Adkins said the performance based payment for 2015 is slated to be $1,000 for full-time employees and $500 for part-time employees. The 2015 amount is based on tax revenue increases in recent years and a budget savings of nearly $2 million dollars in 2014. The savings resulted from reductions in budgeted spending in 2014.

“This approach allows us to provide some additional compensation to employees who have ridden out this economic storm with the city,” he said. “Hard work and dedication have allowed the City to survive the last 10 years … Many of these employees have been without pay increases for five years while the cost of the goods and services they purchase continue to rise. We cannot, however, grant broad across-the-board pay increases at this time. Fiscal responsibility demands a more cautious approach.”

Another newly announced initiative — called The Middletown Way — is a renewed commitment of the city employees to the public and to the importance of the work the employees perform, according to a press release from the city.

Adkins said The Middletown Way is both a statement of expectations for employees of the city and a reminder that public service is of vital importance to the community.

“It is a reflection of my expectations of the commitment I expect from our employees. But it is much more,” he said. “It is a statement that Middletown is a great and special place that we are proud to serve. It is the beginning of an understanding that the work of public employees is critical to the everyday life of the citizens of this community and mutual respect between the citizens and public employees. It is the first step to recognizing that Middletown is not a broken-down rust belt city, but a wonderful place to raise a family, start a business … live a life.”

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