Monrovia needs to switch to a merit-based, rather than seniority-based, compensation system for its employees, according to a report to the City Council by Mark Alvarado, Director of Administrative Services.
The focus must also be on restructuring the current compensation model so that the City pays only what it can afford. As a service delivery organization, personnel is the largest cost factor in the operating budget. Compensating employees for a job well done, as opposed to how long they have been employed, is a sound financial model to follow. All current labor contracts expire no later than the 2012-13 fiscal year. All future budget projections regarding labor costs are based on pension cost sharing and reasonable merit salary increases.
The City Council will decide on his recommendations at its Dec. 20 meeting.
- Brad Haugaard