The Homewood City Council on Monday night formally establishes a tiered bonus system for city employees.

“Every year about this time, the city has paid out to its employees if there had been a surplus from the previous year,” Acting City Manager Cale Smith said. “This is a tiered structure.”

The employee bonus system provides:

$350 for 1-3 years of service

$500 for 4-6 years of service

$750 for 7-9 years of service

$1,000 for 10-15 years of service

$1,500 for 16-19 years of service

$2,000 for 20 or more years of service

Smith said it was discovered that while the bonuses were budgeted, there had never been a resolution to cover the longevity-based payments.

“The reason why this is coming out is that we will have a surplus from last year (fiscal 2025),” Smith said. “Some of the nu

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