(1)    Department level incentive program.  The city manager may authorize department heads to provide additional compensation to employees in an amount not to exceed one hundred dollars ($100.00) based on the following criteria:

        a.    Performance above and beyond what is expected;

        b.    Providing exceptional customer service; or

        c.    For successfully assuming additional or advanced responsibilities on a temporary basis.

        Funds available for this program shall be prorated among the city departments based generally on the number of full time employees in each department at the beginning of the fiscal year.  No employee shall receive more than one hundred dollars ($100.00) under this program in any fiscal year.  Department heads must document the reason for the additional compensation.

    (2)    Major cost savings incentive program.  This program is designed specifically for actions or suggestions that provide a major cost savings to the city.  Department heads will forward nominees to a committee, established by the city manager, that will make the recommendations to the city manager for approval.  The city manager shall establish guidelines for payment amounts based on the level of savings and fiscal impact. Documentation is required to justify the cost savings and employees are eligible for a maximum of one (1) payment per year not to exceed ten (10) percent of the employee’s prevailing rate of pay without the approval of the city council.