A wage hike of 2%, and a lump-sum payment of 1%, have been recommended for employees of the village of Archbold.
Donna Dettling, village administrator, said Monday, Oct. 23, Archbold Village Council reviewed a new wage ordinance for the employees during a work session held that day.
But the wage hike and the payment may end unsuccessfully.
Under the proposed plan, the employees’ out-of-pocket share of health insurance costs will go from 19% to 21% for 2018, followed by another out-of-pocket increase to 23% in 2019.
By giving employees a 2% raise and then granting a lump sum payment of 1% of the employees’ base wages, a full three percent is not added to the employees’ base pay, and therefore, is not compounded in the next year.
So, 2019 employee pay raises will be based on 2017 plus 2% for 2018, not 3%.
Dettling said the consumer price index, which measures the impact of inflation, was about 2% for 2017.
Village officials are in the process of building their budgets for 2018.
The finance committee has recommended the pay hike, but a final decision is up to council.