Highland Beach commission approves employee health plan, merit increases and extends manager’s contract

The Town Commission of Highland Beach approved three substantive personnel and compensation actions during the meeting: authorization for the employee health-care program for fiscal year 2025–26, adoption of Resolution 2025-020 establishing a merit-increase policy for nonunion employees, and a fourth amendment to extend and revise the town manager’s employment agreement.

Employee health-care program: Town Manager Marshall Labradie told commissioners that the town solicited proposals and negotiated with the broker and insurer to limit premium growth. Initial renewal pricing from the incumbent insurer was about an 18.56% increase; negotiations and alternate proposals reduced the employer-rate impact to a negotiated increase of 9.44%. After accounting for employee buy-ups and employee premium contributions, Labradie said the town’s net increase was about 6.44%, within the budgeted target of 7.25%. A motion to authorize the town manager to execute the FY 2025–26 employee health-care program passed unanimously.

Merit-increase policy (Resolution 2025-020): The commission approved Resolution 2025-020, which establishes merit increases for nonunion employees and updates the town’s salary table. The resolution references a market-aligned approach using a South Florida CPI to adjust bands and recommended a 6% merit step for eligible employees with satisfactory evaluations. The motion passed on a roll call with all commissioners voting yes: Commissioner Goldberg — yes; Commissioner Peters — yes; Commissioner Chonotsky — yes; Vice Mayor Stern — yes; Mayor Moore — yes.

Town manager employment agreement (Fourth Amendment): Commissioners voted to extend the town manager’s employment agreement through Sept. 30, 2030, with automatic five-year renewals unless either party provides 90 days’ written notice. The commission also approved a 10-percentage-point increase in the town’s contribution to the manager’s retirement plan (from 20% to 30%) and a 10% increase in base salary effective Oct. 1, 2025. The motion passed on roll call with all commissioners voting yes.

All three votes carried without recorded dissent. The merit policy and the contract amendment include effective dates and are to be implemented by town staff; the health-care plan authorization permits the town manager to execute the insurer agreement on behalf of the town.

Votes at a glance - Employee health-care program FY 2025–26: motion to authorize town manager to execute insurer agreement; outcome: approved (unanimous). No roll-call recorded; chair called for “aye.” - Resolution 2025-020 (merit-increase policy): motion to adopt resolution; outcome: approved by roll call, 5–0 (Goldberg, Peters, Chonotsky, Stern, Moore — yes). - Fourth Amendment to town manager employment agreement: motion to extend contract through 9/30/2030, increase retirement contribution to 30%, and raise base salary 10% effective 10/1/2025; outcome: approved by roll call, 5–0 (Goldberg, Peters, Chonotsky, Stern, Moore — yes).

The commission recorded no abstentions or recusals on these items.