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4. The City Manager is authorized to establish policies governing the award of any additional compensation to employees in positions exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and the circumstances under which such compensation may be made. 5. During Fiscal Year 2025, the City Manager is authorized (but not obligated) to enter into severance agreements only with employees at the level of Department Head or Deputy City Manager where the City Manager in his discretion deems it necessary to enter into such an agreement to attract or retain the employee. Provided however, that: (a) the total severance paid to such employee shall not exceed twelve weeks of the employee's salary; (b) the severance agreement shall not provide for continued entitlement to health, retirement, or similar benefits during the severance period; (c) no severance agreement shall be valid unless it has been executed by the City Manager and the employee and has also been approved as to legality and form by the Office of the City Attorney, as evidenced by the signature of the City Attorney or her designee; (d) at a minimum and without limitation, the City Attorney shall ensure that all severance agreements include a provision expressly voiding the agreement and/or the obligation to pay severance in the event of termination for cause; and (e) prior to entering into a severance agreement, the budgetary source of funding for the agreement shall be identified in writing. This section is not intended to limit the authority of the City Manager, with the concurrence of the City Attorney where applicable, to approve payments to employees or former employees as of or after termination in consideration for waivers of claims or in settlement of actual or potential litigation. This section is further not intended to modify or repudiate severance agreements validly entered into prior to May 9, 2023, nor is it intended to limit the authority of City Council to enter into contracts with appointees providing for severance. 6. The City Manager is authorized to develop, administer, implement, and amend the Classification and Pay Plan for all classes of City of Portsmouth employees effective, June 22, 2024, and thereafter. The City Manager shall cause the Classification and Pay Plan, as amended from time to time, to be published on the City website. 7. Effective June 22, 2024, full-time and part-time general and public safety employees (excluding members of City Council, Constitutional Officers and their employees, temporary employees, and grant funded employees) who were hired before May 1, 2024, may receive a general wage increase up to 3.5%. 8. There shall be no adjustments of retirement allowances (0%) as prescribed in Sections 30-122 and 30-243 of the Code of the City of Portsmouth, Virginia (2006). However, existing Health Reimbursement Accounts of retirees that have previously received HRA funding from the City shall be funded in the amount of $1,400 per account in or about January 2025. The City Manager shall establish the mechanism and timing for the payment of the said supplement and the funding of the said Accounts. 9. That Ordinance No. 2023-38, adopted on May 9, 2023, is hereby repealed. 10. That this ordinance, together with the policies developed by the City Manager in accordance with the terms hereof, constitutes the Fiscal Year 2025 Classification and Pay Plan for the City of Portsmouth. 11. That this ordinance shall take effect on June 22, 2024.