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MEMORANDUM <br /> TO: Elk River Municipal Utilities Commission <br /> FROM: Elk River City Council <br /> DATE: May 27, 2003 <br /> RE: Compensation Package <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 /> 1. A restructuring of the health and dental plan, which provides increased benefits to the <br /> employees; <br /> 2. A 3.77% wage increase for most employees; and <br /> 3. A new §457K plan which can, through matching contributions, increase compensation by <br /> $2,000 per employee. <br /> The new compensation package appears to increase total compensation by 5 to 6 percent. <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 /> 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 /> 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 />