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Council approves four-year MOU with Classified Employees, phases out retiree health for future hires
Summary
The council adopted a four-year memorandum of understanding with the Classified Employees group covering 52 workers. The agreement carries a four-year cost of $1,843,906, includes cost-of-living increases and market adjustments, and phases out retiree health care for future employees.
The Lincoln City Council approved a successor memorandum of understanding with the Classified Employees group on Sept. 24 covering 52 positions responsible for maintenance, utilities and public works functions.
Staff presenter Veronica summarized the economic terms: "The cost of this agreement over the 4 year period is $1,843,906" and the fiscal impact for FY 2024–25 is $169,396. The agreement includes cost-of-living adjustments effective July 1 of each year (4% on 7/1/2024; 3% on 7/1/2025; 3% on 7/1/2026; and 5% on 7/1/2027), market salary adjustments for recruitment- and retention-challenged classifications (maintenance worker levels, refuse driver classifications, wastewater technician), a change to standby pay to an hourly methodology, prorated sick-leave accruals for unpaid leaves, elimination of sick-leave cash-out for new employees hired after adoption, and elimination of retiree health care for future employees.
Council discussion and public comments framed the agreement as a response to recruitment and retention pressures and as a long-term cost-management strategy. Staff and a council member emphasized that changes to retiree health were intended to reduce long-term liabilities and help the city remain competitive for talent.
Vote and action: Council moved and seconded the resolution and approved Resolution 2024-203. The motion carried with all participating council members voting in favor.
Next steps: The fiscal augmentations required by the FY24–25 budget will be implemented as described in the staff report; human-resources and finance staff will operationalize the changes in payroll and benefits for affected classifications.
Representative quote: "One of the major savings that will also be realized by the city with this agreement is the elimination of the retiree health care for future employees," staff said.
