Title
Resolution to Amend the Fiscal Year 2027 Council Approved Budget to Appropriate $1,149,731 from General Fund Committed Fund Balance - Budget Savings to Fund a Portion of a 2% One-Time Bonus
Purpose
PURPOSE/BACKGROUND:
As part of the recently adopted State budget, the Virginia General Assembly authorized a one-time 2% salary bonus for constitutional officers, regional jail superintendents, and their Compensation Board funded deputies and employees. This bonus is mandated to be distributed by the end of September and is fully funded by the State. However, the budget language stipulates that the full 2% must be applied to the Compensation Board-assigned salary, regardless of any local supplements.
Providing this bonus only to select employee groups would create an inequity within the organization and could negatively impact morale among the broader City workforce. To address this issue, the City Manager recommends the 2% bonus be extended to all of the City's permanent full-time employees. Similar to last year, funding will be provided through a combination of departmental end-of-year savings funds, from the General Fund Committed Fund Balance - Budget Savings account, that was originally allocated in the adopted FY27 budget for performance-based (merit) bonuses, and the appropriation of an additional $1,149,731 from the Committed Fund Balance - Budget Savings account. The Committed Fund Balance - Budget Savings account is generated by allocating a portion of year end savings generated by departments to fund bonuses and other initiatives that support the needs of departments. This funding will also cover the cost of any differential between the Compensation Board-assigned salary for the employees covered by the state and their actual salaries.
This approach supports internal equity, reinforces the City’s commitment to its workforce, and helps address recruitment and retention concerns - particularly in departments experiencing high vacancy rates. T...
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