Skip to main content
File #: 26-0177    Name: Employee Bonus Ordinance
Type: Ordinance Status: Agenda Ready
File created: 8/26/2025 In control: City Council Legislative Meeting
On agenda: 9/9/2025 Final action:
Title: Introduction and First Reading. Consideration. Passage on First Reading to amend and reordain Article A (GENERAL PROVISIONS) of Chapter 5 (OFFICERS AND EMPLOYEES) of Title 2 (GENERAL GOVERNMENT) of the Code of the City of Alexandria, Virginia, 1981, as amended.
Attachments: 1. 26-0177_Ordinance Coversheet, 2. 26-0177_Employee Bonus Ordinance
City of Alexandria, Virginia
________________
MEMORANDUM

DATE: SEPTEMBER 4, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: ALYSSA WILLIAMSON, CHIEF HR OFFICER, DEPARTMENT OF HUMAN RESOURCES
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading to amend and reordain Article A (GENERAL PROVISIONS) of Chapter 5 (OFFICERS AND EMPLOYEES) of Title 2 (GENERAL GOVERNMENT) of the Code of the City of Alexandria, Virginia, 1981, as amended.
BODY
_____________________________________________________________________________
ISSUE: Section 15.2-1508 of the Virginia Code provides that the governing body of any locality may provide for payment of monetary bonuses to its officers and employees when authorized expressly by ordinance.
RECOMMENDATION: Adopt an ordinance authorizing the City Manager to establish bonus programs to support operational effectiveness and address personnel needs, including but not limited to, retirement, retention, and performance. Bonuses may be provided to employees in accordance with applicable administrative regulations and guidelines.
BACKGROUND: By adopting the proposed ordinance, the City will have the ability to implement programs that support evolving workforce needs, encourage high performance, and strengthen retention. Similar ordinances have been adopted by other Virginia localities in accordance with state law, demonstrating a proven and transparent approach to compensation. This will allow the City Manager to design and administer bonus programs through appropriate administrative directives and guidelines, ensuring both flexibility and fiscal accountability.
DISCUSSION: The proposed ordinance authorizes the City Manager to establish bonus programs tailored to operational needs. These programs may be used to recognize exceptional performance, retain employees in high-demand positions, and provide retirement incentives. A "bonus" is defined as a one-time, lump-sum payment to an employee that is separate from the base salary. Each program will be supported by documented guidelines to ensure consistency, fairness, and compliance with applicable laws and policies. As such, the City will be better positioned to compete for talent, retain valued employees, and reward contributions that strengthen organizational success.
FISCAL IMPACT: While the ordinance itself does not obligate any immediate financial expenditure, future bonus programs will have a budgetary impact depending on their scope and design. Funding for such program would be identified within departmental budgets or through approved budget amendments. Importantly, the ability to offer bonuses has the potential to generate savings by reducing employee turnover and recruitment costs, while strengthening the City's ability to retain and motivate a high-performing workforce.

ATTACHMENTS:
1. Ordinance Cover Sheet
2. Proposed Employee Bonus Ordinance