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MEMORANDUM <br /> <br />TO: <br /> <br />Elk River Municipal Utilities Commission <br /> <br />FROM: <br /> <br />Elk River City Council <br /> <br />DATE: May 27, 2003 <br /> <br />Compensation Package <br /> <br />At our May 19, 2003 City Council meeting, Commissioner Dietz reviewed your new <br />compensation package for Elk River Municipal Utilities. The package included: <br /> <br />A restructuring of the health and dental plan, which provides increased benefits to the <br />employees; <br /> <br />2. A 3.77% wage increase for most employees; and <br /> <br />A new §457K plan which can, through matching contributions, increase compensation by <br />$2,000 per employee. <br /> <br />The new compensation package appears to increase total compensation by 5 to 6 percent. <br /> <br />We believe that this increase is excessive considering the current economic times. Due to the <br />State's current budget deficit, and the significant likelihood that Local Government Aid will be <br />greatly reduced, it is possible that the city employees will not receive any increase on January 1, <br />2004 and/or that layoffs may occur. <br /> <br />We realize that the Utilities Commission is a separate branch of the City and does not rely on <br />Local Government Aid; however, many of our users and residents have a hard time <br />differentiating the Utilities from the rest of the city government. <br /> <br />The Council is ultimately responsible for the Utilities Commission and we are concemed with <br />the ramifications of your decision and do not believe it is in the best interests of the City as a <br />whole. <br /> <br /> <br />