Middletown using improved finances to reward employees with bonuses

All full-time city employees will receive a $500 bonus, and part-time employees who have worked 1,000 hours in the previous year will receive a $250 bonus. Bonuses will also be paid to employees in collective bargaining units as negotiated through those agreements.

This year’s bonus will cost the city $188,250.    There are 364 full-time and 21 part-time excluding seasonal employees potentially eligible for the performance based compensation bonus, Burton said.

City Manager Doug Adkins said the program was started during the Great Recession, when the city was unable to afford pay increases.

Adkins said the concept was that if the city did well, a portion of those additional revenues would be paid to the employees. He said Middletown has fewer employees than some other communities of its size and employees went a few years with no pay increases.

The bonus is a one-time supplementary pay to provide city employees lump sum payments when in the sole discretion of City Council, the overall performance of the city, as measured by income tax receipts, justifies additional compensation to its employees. The amounts of the bonus can vary and may or may not be granted. The one-time bonus payment will not increase an employee’s base pay.

Adkins said officials forecast a decrease in tax revenues now that some major construction projects have been completed. However, Adkins said the city has seen an increase in revenues through June, and he requested that council consider giving the bonus to employees.

Burton said bonuses were paid in 2015, including $1,000 for full-time employees and $500 for part-timers.

In 2016, full-time employees received $500, while part-time employees received $250.

Employees did not receive bonuses in 2017 or 2018 as the city was able to grant pay raises, Adkins said.

The move is the second made recently by city officials because of an improved financial outlook. Last month, council approved the appropriation of $30,000 to provide recreational activities for residents this summer. City officials said they will be partnering with several local organizations such as the YMCA and Community Building Institute to provide multiple programs that will be offered to children of various ages.

City officials said during the Great Recession, Middletown was forced to cut back on many services, including recreation programs, due to budget constraints.