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FY 20_21 Pay & Benefits Memo to EmployeesPay Increases for FY 19/20 Page | 1 www.cityofdenton.com ADA/EOE/ADEA 9/23/20 H:\COMP\Annual Comp Proposal - Budget Info\FY20-21\Memo to employees.docx Human Resources * 601 E. Hickory, Suite A * Denton, Texas 76205 Telephone (940) 349-8340 * Fax (940) 349-8348 MEMORANDUM DATE: September 23, 2020 TO: All Employees FROM: Tiffany Thomson, Director of Human Resources SUBJECT: Merit Increases, Longevity and Health Benefits Details for FY 20/21 The City Council adopted a budget on September 22, 2020, that includes funding for a one-time, lump-sum merit-based payment. Department Directors will work within the 3% approved personnel budget to allocate the recommended percentage for each employee. The merit payment cannot go over 3% for the respective department's personnel budget. The details of the compensation plan and benefits for FY 20/21 are provided below. Non-Civil Service Employee (excluding some Electric and Seasonal employees*) One-Time, Lump-Sum Merit Payment Details o Performance Reviews are transitioning from being conducted on an employee's anniversary date or date in position throughout the year to being conducted at the same time towards the beginning of the fiscal year. FY 20/21 will be an outlier year in the process to execute the one-time, lump-sum merit payment. An updated Performance Review form and process are being developed and will be introduced towards the end of FY 20/21. o Most non-civil service employees* will be eligible for a one-time, lump-sum merit payment. The base rate of pay for employees will not be adjusted for FY 20/21. o Regular Part, ¾ and Full-Time employees who are employed with the City of Denton on October 1, 2020, will be eligible for the one-time, lump-sum merit payment. The employee must still be employed on November 5th, 2020 to receive the merit pay. o Department Directors, Managers, and Supervisors will allocate the percentage of the one-time, lump-sum merit payment per employee based on performance. All Supervisors will complete an updated lump-sum merit performance review form to Pay Increases for FY 19/20 Page | 2 www.cityofdenton.com ADA/EOE/ADEA 9/23/20 H:\COMP\Annual Comp Proposal - Budget Info\FY20-21\Memo to employees.docx capture performance and the recommended lump sum, merit percentage. The one-page lump-sum merit performance form will be distributed along with information from Finance in the coming weeks. The departments must remain within the budgeted amount of 3% for their department. The lump-sum percent will be based on the employees' annual salary on October 3rd, 2020. o The one-time, lump-sum merit payment will be a separate deposit on the November 6, 2020 payday, and will be calculated based on the employees' annual salary. The lump sum will be taxed on current W-4 and all mandatory deductions. *Denton Municipal Electric (DME) Employees on the Craft Pay Plan The DME craft pay plan is a step plan that is adjusted periodically based on APPA salary results for a journeyman position. Employees move through the plan based on success in a Department of Labor approved apprenticeship program until they reach the journeyman level. As a result, merit lump sum payment are not granted to employees in the craft pay plan. DME management will be providing an update to staff in the next few days on the most recent APPA salary results and the planned salary increase for FY 20/21. Any questions regarding this increase should be addressed to Tony Puente, Executive Manager of Utilities. Civil Service Employees o Effective March 20, 2021, all Police and Fire Civil Service employees who are on the Police and Fire pay plans will receive increases that will be equal to the market average plus 5% as defined in the meet and confer agreements. This will result in various increases by rank and step: Position Step A Step B Step C Step D Step E Step F Step G Police Recruit 1.64% 1.31% 0.99% Police Officer 1.16% 1.18%1.19%1.20%1.22%1.23% 1.24% Sergeant 2.36% 2.15% 1.96% Lieutenant 1.84% 1.95% 2.05% Fire Fighter 3.32% 3.02% 2.76%2.52%2.30%2.10% Driver 2.12% 3.90%4.03% Captain 1.98% 2.10%2.21% Battalion Chief 2.08% 2.18%2.27% o Civil Service employees will continue to receive scheduled step increases. Pay Increases for FY 19/20 Page | 3 www.cityofdenton.com ADA/EOE/ADEA 9/23/20 H:\COMP\Annual Comp Proposal - Budget Info\FY20-21\Memo to employees.docx *Seasonal Employees The seasonal pay plan will remain the same. Temporary and Seasonal employees are not eligible for the one-time, lump-sum merit payment for FY 20/21. Pay Grade FY 20/21 SA0 $9.00 $11.00 SA1 $10.00 $15.00 SA2 $11.00 $16.00 SA3 $12.00 $19.00 SA4 $14.00 $20.00 SA5 Salary is negotiated due to the nature and complexity of the position Longevity Check Longevity Checks will be deposited on Wednesday, November 25th. Employee Benefits There are no employee benefit plan changes for 2021. All plan provisions, rates (unless you cross an age band for life or disability), and carriers will remain the same for health, dental, vision, life, disability, and flexible spending accounts. The City’s Open Enrollment period will begin on October 12, 2020, and run through October 30, 2020, at 11:59 p.m. Additional information about the Open Enrollment meeting schedule and processes will be communicated at a later date. Questions If you have any questions about the compensation increases for FY 20/21 that your supervisor is unable to answer, please call Rachel Staton at ext. 7754, Carri Byrd at ext. 8349, or send an email to Compensation@cityofdenton.com. Questions about employee benefits should be discussed with Linda Kile at ext. 8388, Deby Skawinski at ext. 7810, or can be emailed to Benefits@cityofdenton.com.