Hampton Withdraws Employee Holiday Bonus Proposal to Explore “Spend in Hampton” Program
In order to explore the development of a “spend in Hampton” gift card program, Hampton City Manager Mary Bunting is withdrawing her request to City Council that they consider employee bonuses at this time.
Since initially approaching the City Council about considering a potential employee bonus, City Manager Bunting has been working on possible ways of coupling the one-time payment to employees with a Hampton-specific spending program. The aim of the bonus plan was to offer a means for employees to use their bonuses in Hampton in ways most beneficial to them – whether for essentials such as groceries or holiday spending. This approach would have had several benefits including recognizing hard-working employees who have not had raises for a couple of years and keeping employee spending in Hampton. By keeping the money in Hampton, the cost of the bonus would have been reduced by taxes received on that spending. Further, the program would have had the extra benefit of exposing the many employees who do not live in Hampton to the retail, dining, and entertainment options in the city.
The City initially explored a plan to issue a VISA or Mastercard gift card with zip code restrictions. However, this was not a viable option since those companies do not permit such limitations. Staff then investigated issuing a Peninsula Town Center gift card, an option which would keep employee spending in Hampton, but did not have the broader impact that staff desired.
As staff worked to find other solutions, they discovered that the City could possibly build a "Keep it in Hampton" gift card program. This could take several months to establish but the program would have a much broader appeal and – better yet – could be used by any individual and/or employer to give gifts or bonuses to their friends, family members, or employees for any occasion.
“I am personally very excited about the potential to build this broader program that any Hampton merchant could sign up to accept,” said City Manager Bunting. “I have had preliminary conversations with the City's bank as well as the directors and some members of the Downtown and Coliseum Central business improvement districts about this program. They have indicated their support and willingness to help develop the program.”
In addition, the City Manager sent out letters on December 3 to Hampton storefront merchants to determine their interest in participating in such a program and is soliciting other volunteers to work on a committee to develop the "Keep it in Hampton" gift card program.
As this program develops and staff prepares the next budget, the City Manager will make recommendations on various employee compensation options. In the meantime, the FY 2010 budget surplus will remain in fund balance. Accordingly, the agenda items originally contemplated for December 8 consideration and action regarding the surplus will not appear on the agenda.
“In pulling the item for consideration, I want to nonetheless stand firm in stating my belief that our city employees are well-deserving of the bonus initially proposed – indeed they are deserving of more. Our recommended $300 bonus was less than any bonus given by other local governments, school districts, and/or the State,” said Bunting.
“Whether they respond to emergency calls for service or pick up the garbage, the city workforce does so with dedication, care and commitment every day. It is my hope that we will be able to return to the idea of some measure of compensation – whether as a one-time bonus or the preferable salary increase – soon. However, this extra time will give us the chance to develop a stronger and better option for one-time pay adjustments that we hope to keep in our community.”
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