07/24/2019
Town Council – Employee Bonus Policy Statement
A few residents have asked the Town Council, to offer an explanation into the thought process
and criteria that was utilized in determining bonuses for town employees. As everyone is
aware, government operates different from a private business or corporation, in that there are
no profits to be realized at the end of the fiscal year or no dividends to distribute, and the like.
Therefore, the health of the community is based upon fiscal responsibility and a myriad of other
factors such as; maintenance of property values, stewardship of the local property tax rate,
safety of the community, quality of life, maintenance of infrastructure, delivery of services,
economic vitality, and the like. All of these factors were taken into consideration when
considering the current bonus structure and all previous bonuses that were given, to town
employees, over the past decade.
Fiscal Responsibility – How well is the staff watching the operating budget and balancing that
operational function against the anticipated revenue of the Town. This function includes,
among other things, always maintaining a balanced budget and maintaining a cash surplus. It
was suggested that the community look to the previous fiscal year, when determining a bonus
structure, for the current year. The Town Council not only looked to the previous year of 2018
but the previous 5 years and the first two quarters performance of 2019. For example; at the
end of 2018, General Fund operating receipts exceeded expectations and were over the
projected amount by almost $750,000, while expenses were under budget by almost $244,000.
This is a trend the Town has enjoyed for nearly a decade and demonstrates a culture of
financial responsibility. When compared to other communities, St. John is doing extremely well
and has a very stable outlook. Concerning individual employees, the Town Manager and
department heads function in key roles to maintain the financial stability of the community.
For example, the Town Manager also serves in the capacity of Public Works Director, HR
Director, ADA Coordinator, and purchasing agent for the Town. As the Town has operated
without a Public Works Director, for the past 10 years, the Town Manager being able to
function in this capacity has saved the community over $900,000 over this same time. In
addition, prior to 2017, the Town Manager served in the capacity of Building and Planning
Director, again resulting in a savings of at least $1.2 million over 17 years. Compared to our
neighboring communities, functioning in these department head capacities is outside of the
normal duties of the Town Manager. The heads of department of the Town work in conjunction
with the Town Manager to help achieve the goals of the Town Council. It is expected that each
department operate within certain budget parameters, maximize workforce development,
promote pride in the community, and exceed operational goals, to name a few.
Property Values and Property Tax Rates – How do the Town’s property values and property tax
rates compare to surrounding communities. This is the only real barometer to use, as to
measure the success of maintaining and increasing property values, is a comparison of this kind.
St. John has the second lowest tax rate, in Lake County, at 0.4965/$100 of assessed value. St.
John also maintains the highest median income and home values in Lake County. St. John also
has the highest percentage of owner-occupied housing units, in Lake County, comprising, a
significantly high, 98% of all households in Town. This is something the Town Council monitors
closely and the staff works very hard to maintain.
Safety of the Community and Quality of Life – These two categories tend to go “hand in hand”,
as the safer the residents feel, the better the quality of life they tend to enjoy. To measure how
the staff is going in this particular area, statistical information is a great tool to use, as it is
comprised of actual data, from reliable sources, such as FBI crime statistics. St. John started on
the path of success back in 2009, where CNN/Money ranked St. John as the 48 th Best Small
Town in America. This trend has continued for the past decade with the Town winning more
accolades than any other community in our area. Most recently, Safewise named St. John as
the No.1 Safest Place in Indiana. Again, this is a wonderful distinction for our Community and is
a statistical, tangible, and an objective way for the Town Council to measure employee
performance.
Maintenance of Infrastructure, Service Delivery, and Economic Vitality – The Town’s staff is
expected to maintain 104 miles of roadway, and do their best to keep up with maintenance.
Over the previous five years, the Town has re-paved over 25 miles of road in the community.
This is no small task and the staff is expected to keep with-in budget. It is fully acknowledged
that this is an on-going task and that there is never enough money to handle all of the roadway
challenges in the Town. The Town’s water utility consists of seven production wells, 2 water
treatment facilities, 3 water towers, and over 100 miles of water main. This system requires
constant maintenance and attention. The Town’s staff consistently facilitates utility projects
and system upgrades within budget. In fact, St. John has only raised water rates a few of times
over the past two decades! While it does occur, service delivery to the Town’s utility customers
is not often interrupted. Economically speaking, St. John is an industry leader. The Town
enjoys a AA rating from Standard and Poors, is among the fastest growing communities in the
Chicago Metro area, has a projected per capita buying income of 112% the national level, has
previously been awarded the title of Richest Town in the State of Indiana, was previously
awarded the title of having the best credit scores in the state, and maintains the highest
median income and home values in Lake County.
This outline is intended to provide residents with a “snap shot” of just some of the criteria the
Town Council monitors and looks at when considering employee salaries and wages. We strive
to maintain a dedicated and talented workforce and feel, as with any organization, that hard
work, dedication, and financial responsibility, is not only a goal, but an expectation of the Town
Council.