At its June 17th meeting Chelsea’s city council voted to approve an increased compensation package for its non-union, salaried employees. New Assistant City Manager Susan Montenegro recommended the change, in hopes of retaining the value and skill sets brought to the city by its senior staff.

“It’s very important for us to show to our senior staff that we value them. It’s hard to replace that knowledge that they have and the talent and skills that they bring to their position,” Montenegro explained. 

The eleven staff members who qualify will see a salary boost of 5%, effective July 1, and that increase is in line with that of the city’s union employees. Overall, the move helps Chelsea remain competitive as an employer. 

Montenegro said after studying the compensation packages offered in other, similarly-sized Washtenaw County communities, she also recommended several enhancements to the employee benefits package. Those enhancements include a new paid holiday, increased contributions to health savings and retirement plans, and an increased reimbursement amount for opting out of the city’s health insurance plan.

The opt-out reimbursement amount jumped a whopping 67% from $2,400 to $4,000, because, as City Manager Marty Coburn noted during the meeting, it had been “many years” since the previous adjustment. With healthcare plans now more than $15,000 per year, when an employee chooses the $4,000 per year opt-out reimbursement, the city saves money. “We actually use that as an incentive,” said Coburn.

The raise and benefits enhancements were already budgeted for the 2024-2025 fiscal year.