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7.2.D. - Page 7 <br /> Upon Council direction the City Manager shall request external labor market <br /> comparisons for all classifications in the Executive Management Group. Upon review of <br /> the labor market comparison and the City's financial condition the City Council may <br /> approve implementation of the new salary ranges for the Executive Management <br /> Group. <br /> The salary range for each classification in the Executive Management Group is <br /> established by using the lowest salaried city and the highest salaried city comparable <br /> classification. Individual Executive Management salaries for Department Heads are <br /> reviewed by the City Manager on an annual basis and are set anywhere within the <br /> established high /low range based on performance. Individual Executive Management <br /> salaries for Division Managers are reviewed by the Department Head and recommended <br /> to the City Manager on an annual basis and are set anywhere within the established <br /> high /low range based on performance. <br /> Additionally, all Executive Management classifications shall maintain a minimum <br /> differential of 10% above the top step subordinate classifications. Adjustments in <br /> salary ranges to maintain the differential will be effective the same date the subordinate <br /> class received the adjustment. Council approval for adjustments to salary ranges due <br /> to compaction shall not be required. <br /> EXCEPTIONAL PERFORMANCE BONUS <br /> The City Council shall establish a bonus program for Department Heads in the Executive <br /> Management Group that will offer incentives and commensurate rewards for exceptional <br /> service or contributions. Any bonus granted under this program is at the discretion of <br /> the City Manager and is awarded when previously established stretch goals have been <br /> met or when the City Manager deems it appropriate. Department Heads in the <br /> Executive Management Group are eligible to receive up to a 5% of their base salary one <br /> time each fiscal year. It is not expected that all Department Heads positions will receive <br /> bonuses each year since this program is intended to recognize only exceptional <br /> performance. This program is not a method of recognizing expected or above average <br /> performance. Again, the Bonus program is only for exceptional service to the city or <br /> community. Any bonus awarded under this program is not considered part of base <br /> salary nor is there any intention that any bonus serve as the basis for any future <br /> compensation. <br /> Annually as part of the budget process, the City Manager recommends to council an <br /> amount to be appropriated for this program for the ensuing fiscal year. This amount <br /> may be based upon experience and may be expanded or reduced in accordance with <br /> the City's financial prospects and the City Manager's /City Council's satisfaction with the <br /> program. <br /> 3 <br />