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May 22, 2012
<br />• The bonus will be based on eligible employees' June 1, 2012 base salary.
<br />• The bonus payments are not pensionable wages; that is, the bonuses will be
<br />excluded from average credible compensation calculations and will not negatively
<br />impact the City's pension liabilities for City retirement plans or VRS.
<br />• Bonus payments are subject to Federal and State income tax withholdings and
<br />are reportable income for W-2 purposes. The City's employer share of FICA is included
<br />in the total cost.
<br />• Bonus payments will be issued to employees as a separate paycheck on June
<br />15, 2012, anon-payroll cycle Friday.
<br />• Retirees of Portsmouth Supplemental Retirement System and the Fire and Police
<br />Retirement System will receive a check on June 15, 2012; however, it will not be a
<br />payroll check. Therefore these retirees will receive a 1099 for this payment for 2012.
<br />Eligible retirees are those who retired on or before June 1, 2012.
<br />• The bonus dollars will be allocated and appropriated as follows:
<br />o General Fund - $1,756,197 for active employees
<br />o General Fund - $371,110 for retirees
<br />o Behavioral Healthcare Services Fund- $128,632
<br />o City Garage Fund - $33,895
<br />o Grant Fund - $19,903
<br />o Information Technology Fund - $55,007
<br />o Golf Fund - $17,132
<br />o Parking Authority Fund - $9,141
<br />o Public Utility Fund - $131,186
<br />o Risk Management Fund - $4,191
<br />o Stormwater Management Fund - $13,531
<br />o Willett Fund- $2,683
<br />o Social Services Fund - $209,713
<br />o Waste Management Fund - $57,139
<br />Financial impact:
<br />• The funding source for both the re-appropriation to the Schools and one-time
<br />bonus payments is the $9,943,797 in unspent local school funds from prior fiscal years,
<br />which was returned to the City on May 18, 2012. These funds will be booked as
<br />General Fund revenue for FY 2011-12. The one-time bonus payment as outlined
<br />should not jeopardize the City's credit rating, nor will it increase the City's unfunded
<br />pension liabilities.
<br />Recommended Action:
<br />• In accordance with Council's consensus, the Administration recommends
<br />adoption of this appropriation ordinance. Vision Principle: Pride of Past.
<br />1. Mark Geduldig-Yatrofsky, P. O. Box 50141, voiced his opposition to items being
<br />voted on under "Items Submitted by Council Members".
<br />Motion by Mr. Edmonds, and seconded by Mr. Whitehurst, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />"ORDINANCE (1) TO APPROPRIATE THE SUM OF $4,900,000 IN THE FY 2012-13
<br />GENERAL FUND AND THE FY 2012-13 EDUCATION FUND FOR THE OPERATION
<br />OF THE PORTSMOUTH PUBLIC SCHOOLS, (2) TO APPROPRIATE THE SUM OF
<br />$2,809,460 IN THE FY 2011-12 GENERAL FUND TO PROVIDE AONE-TIME BONUS
<br />TO CITY EMPLOYEES, EMPLOYEES OF CONSTITUTIONAL OFFICERS, AND
<br />RETIREES OF THE PORTSMOUTH SUPPLEMENTAL AND THE PORTSMOUTH
<br />FIRE AND POLICE RETIREMENT SYSTEMS, AND (3) TO TRANSFER AND TO
<br />APPROPRIATE THE SUM OF $682,153 TO VARIOUS FY 2011-12 OPERATING
<br />BUDGET FUNDS."
<br />Ayes: Cherry, Edmonds, Heretick, Moody, Randall, Whitehurst, Wright
<br />Nays: None
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