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Council hears proposal to pay tiered year‑end bonuses from FY25 surplus

Homewood City Council · November 25, 2025

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Summary

Finance staff told the council the city expects an FY25 general fund surplus (spoken as $2,780,000 in the transcript) and presented a resolution to authorize tiered year-end bonuses with a not-to-exceed cap referenced in the record; staff also said the city will cover taxes on the bonuses so employees receive the stated amounts. The transcript records presentation and intent to vote but does not include a final vote tally.

Finance staff presented a resolution on Nov. 24 proposing tiered year-end bonuses for city employees contingent on the city closing fiscal year 2025 with a surplus. A finance presenter stated, "we are looking at a $2,780,000 surplus from '25," and said the money for the bonuses has been budgeted, though a formal resolution had not previously been adopted.

Staff explained the resolution is intended to authorize payment of non-pensionable bonuses and to ensure the retirement systems are properly handled for those payments. The resolution, as referenced in the discussion, includes a not-to-exceed cap (spoken in the transcript as $365,000 and later referenced as an updated figure—spoken in the record as '4.20' which is unclear). Staff and council also discussed payroll tax treatment; staff said the city will pay employee and employer taxes so employees receive the advertised net amounts. "So they will get a check for $3.50 or 500 or 71,000," the transcript records (numeric rendering in the record is unclear), and staff clarified the city will cover the taxes.

Council members indicated they wanted the item acted on that night so checks could be cut promptly for the holiday season. The transcript shows the presentation and discussion and the council's intent to vote, but the provided record does not include the formal motion or the vote outcome. For the official action and vote tally, consult the adopted minutes or the city clerk.

Next steps: If approved by vote, the city will execute the resolution, fund the bonus payments within the cap, and distribute checks to eligible employees.