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The Albert Lea City Council on Monday approved a one-time monetary incentive to help recruit new employees in 2022, as well as an incentive for employees who work the first six months of the year.

The action comes as the city faces significant challenges to recruit and retain employees, City Manager Ian Rigg said. 

The new hire incentive will be a $500 lump sum to each employee hired in 2022 who completes their six-month probationary period. A prorated amount will be paid to part-time regular employees based on percentage of time worked.   

Payments will be made on the next regularly scheduled pay date after the probationary has been completed. 

The city will also pay a $500 lump sum retention incentive to all employees who are in active payroll status as of Jan. 1 and who remain on active payroll through June 30. The incentive will be paid on July 15, and part-time regular employees will be paid a prorated amount based on percentage of time worked.   

Background information about the incentive stated the city has also communicated to the unions representing city employees about the program. Whether the benefit applies to a bargaining unit will be determined by the agreement between the city and each union. 

In other action, the council:

• Approved a 2.5% wage increase for non-union employees starting Jan. 1 and a step increase for employees still able to progress on the wage scale. 
• Approved a two-year labor agreement with the Minnesota Public Employees Association representing police officers, detectives and sergeants. 

The agreement includes a 2.5% wage increase starting Jan. 1, 2022, and a 2.75% increase starting Jan. 1, 2023. The employee contribution toward health insurance will remain the same. 

• Approved a two-year labor agreement with the International Association of Firefighters Local 1041 representing firefighters and captains in the city. 

The agreement includes a 2.5% wage increase starting Jan. 1, 2022, and a 2.75% increase starting Jan. 1, 2023. The employee contribution toward health insurance will remain the same. 

• Accepted almost $31,000 in additional American Rescue Plan Act funds. 

The city will be receiving a total of $1.929 million. 

• Approved an agreement with the Minnesota Historical Society for a $276,000 grant that will go toward repairing the terracotta facade and mortar joints of the Jacobson Building at 211 S. Broadway. 
• Authorized a Broadway Ridge Urban Renewal grant for $4,540 for facade restoration at 117 N. Newton Ave. The grant will be matched by the owner.
• Approved a memorandum of agreement with the state, authorizing participation in the national opioid settlements.

Background information provided by the city states Minnesota’s share could be as much as $337 million over several years but could be less if cities and counties do not sign on. Cities and counties must sign the agreement to receive payments.