INCENTIVE PAY AND RECOGNITION BONUSES

Denver Revised Municipal Code ch. 18, art. II, div. 4

in effect

Denver Revised Municipal Code § 18-71 Applicability.

Sec. 18-71. - Applicability. (a) This division 4 shall apply to employees in all classifications in the career service except deputy sheriffs, deputy sheriff majors, deputy sheriff division chiefs; and to the following employees in classifications not in the career service to the extent authorized by the appointing authority for these employees: (1) Employees of the city council, library commission, civil service commission, and the board of adjustment; (2) [Reserved]; (3) Employees appointed by the mayor pursuant to the authority of Charter section 9.1.1(E)(iv); (4) Employees appointed by the auditor pursuant to the authority of Charter section 9.1.1(E)(viii). (5) Employees appointed by the clerk and recorder pursuant to the authority of Charter section 9.1.1(E)(xiv). (b) This division 4 shall apply to employees working for the Denver Health and Hospital Authority who have elected to remain career service employees according to the personnel services agreement between the city and the authority dated January 1, 1997, as amended. For any year in which the city appropriates monies for performance-based incentive payments pursuant to subsection 18-73(a) and authorizes the disbursement of performance-based incentive payments pursuant to section 18-74, the authority shall likewise provide for performance-based incentive payments to be made to career service employees working for the authority. In addition, for any year in which the city authorizes the disbursement of performance recognition bonus payments pursuant to section 18-76, the authority may likewise provide for performance recognition bonus payments to be made to career service employees working for the authority. Notwithstanding the provisions of section 18-74 and 18-76, the approval of the mayor shall not be required for (i) any performance-based incentive payments to be made by the authority; (ii) for performance recognition bonus payments to be made by the authority, or (iii) for any criteria adopted by the authority for earning such payments. However, the authority shall comply with any other requirements of this division 4 for such payments, including, but not limited to, any requirement for approval by the Office of Human Resources Executive Director. Any performance-based incentive payment or performance recognition bonus made to city employees working for the authority shall be made from funds of the authority and not of the city, and shall be paid or reimbursed in the same manner as is provided for the payment or reimbursement of other wages in the personnel services agreement. (c) This division 4 shall apply to career service employees working for the district attorney, clerk and recorder and auditor; provided, however, the approval of the mayor shall not be required for (i) the establishment of criteria for earning performance-based incentive pay as provided in subsection 18-74(a); (ii) for performance recognition bonus payments to be made by the authority; nor for (iii) a determination that performance targets have been met in any fiscal year as provided in subsection 18-74(e), and instead such approvals shall be given by the district attorney, clerk and recorder and auditor for their respective offices. The district attorney, clerk and recorder and auditor shall comply in all other respects with the requirements of this division 4, including, but not limited to, any requirement for approval by the Office of Human Resources Executive Director. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 7-06, § 2, 1-9-06; Ord. No. 756-06, § 1, 11-13-06; Ord. No. 101-07, § 1, 3-5-07; Ord. No. 264-07, § 17, 6-11-07; Ord. No. 701-08, § 1, 12-15-08; Ord. No. 387-11, § 3, 7-18-11; Ord. No. 661-12, § 3, 12-26-12; Ord. No. 233-21, § 4, 3-30-21)

Denver Revised Municipal Code § 18-72 Definitions.

Sec. 18-72. - Definitions. As used in this division, the following terms shall have the meanings in this section ascribed to them: (a) "Incentive pay" or "incentive payment" shall mean additional compensation in the form of a bonus over and above an employee's base rate of pay and any merit increase in pay as provided in the classification and pay plan, by which additional compensation may be earned by an employee on an annual basis in accordance with the performance-based standards and procedures set forth in this division and with any additional criteria promulgated by the mayor or the heads of the various departments and agencies of the city as provided herein. (b) "Efficiency savings" shall mean monies made available for incentive payments under section 18-75 due to reductions in expenditures by a city department or agency in any fiscal year, resulting in projected total expenditures for the fiscal year being below the amounts previously budgeted and appropriated for expenditure by the department or agency for the fiscal year. "Efficiency savings" shall not be applicable to or used for recognition bonuses. (c) "Recognition bonus" or "recognition bonus payment" shall mean additional compensation in the form of a discretionary cash or cash-equivalent bonus over and above an employee's base rate of pay and any merit increase in pay by which additional compensation may be earned by an employee on a performance recognition basis in accordance with the standards and procedures set forth in section 18-76, and is separate from incentive pay. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 862-06, § 1, 12-26-06; Ord. No. 101-07, § 1, 3-5-07)

Denver Revised Municipal Code § 18-73 Incentive payments and recognition bonuses subject to prior appropriation.

Sec. 18-73. - Incentive payments and recognition bonuses subject to prior appropriation. (a) The city council may provide annually for performance-based incentive payments to be administered pursuant to section 18-74 by including within the annual appropriation ordinance an appropriation for incentive pay. Any annual budget submitted by the mayor to the council and proposing any performance-based incentive payments shall clearly express the amount to be appropriated for this purpose both in a dollar amount, and as a percentage of the overall amount to be appropriated for personal services. The maximum lawful incentive payment amount any individual employee may earn shall be no more than double the percentage amount thus approved in the budget, calculated as a percentage of the employee's annual rate of pay. Payment of incentive payments are subject to the provisions of section 18-74. (b) As to incentive payments, without the need for further city council action or appropriation, the mayor is hereby authorized to make incentive payments from efficiency savings realized by a department or agency of the city in accordance with subsection 18-75(b), to the extent the department or agency does not exceed the amount previously appropriated for expenditure by the department or agency, subject to the provisions of section 18-74. (c) As to recognition bonus payments, without the need for further city council action or appropriation, the mayor is hereby empowered to authorize recognition bonus payments in accordance with section 18-76 to the extent the department or agency does not exceed amounts previously appropriated for expenditure by the department or agency. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 862-06, § 1, 12-26-06; Ord. No. 101-07, § 1, 3-5-07)

Denver Revised Municipal Code § 18-74 Standards and procedures for payment of performance incentives.

Sec. 18-74. - Standards and procedures for payment of performance incentives. Subject to the availability of a prior appropriation therefor as provided in section 18-73, the mayor may authorize the disbursement of performance-based incentive pay for employees according to the following standards and procedures: (a) The head of the department or agency shall, prior to January 1 of any fiscal year and subject to the prior written approval of the mayor and the Office of Human Resources Executive Director, adopt and make available to all employees within his or her department or agency objective criteria for earning incentive pay within that fiscal year. The head of the department or agency in the first quarter of each year may propose modifications to the criteria based upon actual performance for the prior year, subject to the prior written approval of the mayor and the Office of Human Resources Executive Director. Any approved amendments to the criteria shall be made available to all employees within his or her department or agency. (b) Any criteria adopted pursuant to this subsection shall include performance targets for the department or agency sufficient to allow the head of the department or agency to measure cost savings, enhanced revenues, increased productivity, operating efficiencies, enhanced service delivery, or any similar objective measure of performance or productivity. (c) Any criteria adopted pursuant to this section shall provide that incentive pay may be earned by employees throughout the department or agency or any subdivision thereof, based upon the overall performance of the department, agency or subdivision, or, in the alternative, may be earned by individual employees based upon individual achievement in meeting the performance targets established by the head of the department or agency. (d) The maximum amount of any performance-based incentive payment for which any employee shall be eligible shall be as set forth in the criteria adopted by the expending authority in accordance with subsection (b) and (c) of this section; provided, however, no incentive payment shall exceed the maximum lawful incentive payment amount as provided in subsection 18-73(a). (e) No incentive payment shall be made, and incentive payments remain discretionary, until certified by the department or agency head; provided however, that for career service employees working for the district attorney, clerk and recorder and auditor, incentive payments remain discretionary and shall not be paid until approved by the district attorney, clerk and recorder and auditor for their respective offices pursuant to subsection 18-71(c). The process for certification is the following: the head of the department or agency documents and certifies to the mayor and the Office of Human Resources Executive Director that the performance targets established in accordance with subsections (b) and (c) have been or are projected to be met for the year, and the mayor and the director have approved the same in writing. The certification by the appointing authority of the department or agency shall specifically identify all employees eligible to receive the incentive payment as a result of having met the performance target, and a copy of the certification shall be provided to the manager of finance. (f) Unless otherwise provided in the criteria adopted by the head of the department or agency pursuant to this section, any incentive payment shall be made in the final month of the fiscal year. The incentive payment shall be deemed to be compensation in addition to, and not a part of, the employee's regular base rate of pay and any merit increase in pay as provided in the classification and pay plan, and shall be subject to any and all withholdings for taxes, employee contributions for benefits, and any other similar withholding that may be required by law or authorized by the employee. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 862-06, § 1, 12-26-06; Ord. No. 775-07, § 20, 12-26-07; Ord. No. 701-08, § 1, 12-15-08; Ord. No. 661-12, § 3, 12-26-12)

Denver Revised Municipal Code § 18-75 Procedures for payment of efficiency savings incentives.

Sec. 18-75. - Procedures for payment of efficiency savings incentives. In recognition of the performance and effort of employees throughout the city that allows the city to achieve savings in costs or expenditures in any fiscal year, the mayor is hereby authorized to make incentive payments to employees according to the following standards and procedures: (a) The mayor may authorize payment of incentives to all employees subject to this division based upon projected overall efficiency savings by the city, subject to the prior approval of the city council acting by ordinance. Any such ordinance shall provide for a re-appropriation of monies between and among the departments and agencies of the city as may be necessary to allow the payment of efficiency savings as provided hereunder. (b) Either in lieu of or in addition to any incentive payment authorized pursuant to subsection (a) of this section, the head of any department or agency may also subject to the approval of the mayor and the Office of Human Resources Executive Director, authorize the payment of monies realized from efficiency savings to employees within the department or agency in recognition of extraordinary performance previously accomplished by employees of that department or agency when such payments may be made from monies uniquely available to that department or agency through state or federal grants, when such monies would be lost to the city and the department or agency if not expended by a date certain, and when such payments do not exceed the total amount of money previously budgeted and appropriated for expenditure by the department or agency. (c) All incentive payments under this section are subject to the provisions of section 18-74. In addition, any incentive payment made pursuant to this section shall be paid in an equal amount to all employees subject to this division if made pursuant to subsection (a) of this section, or in an equal amount to all employees of the department or agency if made pursuant to subsection (b) of this section; provided, however, no employee who has received a rating of "below expectations," "needs improvement," or any similar rating of unsatisfactory performance on the employee's most recent annual evaluation shall be eligible to receive any incentive payment under this section. The amount of any incentive payment made pursuant to this section shall be determined and authorized by the mayor, but shall be in an amount of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500.00) per employee. (d) The mayor shall report to the manager of finance and the city council any determination to pay incentives as provided in this section. Unless otherwise authorized by the mayor, any incentive payment pursuant to this section shall be made in the final month of the fiscal year. The incentive payment shall be deemed to be compensation in addition to, and not a part of, the employee's regular base rate of pay and any merit increase in pay as provided in the classification and pay plan, and shall be subject to any and all withholdings for taxes, employee contributions for benefits, and any other similar withholding that may be required by law or authorized by the employee. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 862-06, § 1, 12-26-06; Ord. No. 775-07, § 21, 12-26-07; Ord. No. 661-12, § 3, 12-26-12)

Denver Revised Municipal Code § 18-76 Standards and procedures for payment of performance recognition bonuses.

Sec. 18-76. - Standards and procedures for payment of performance recognition bonuses. The mayor may authorize departments and agencies of the city to make disbursements for payment of performance recognition bonuses for eligible employees according to the following standards and procedures: (a) The head of the department or agency wishing to initiate a recognition bonus program shall submit for the prior written approval of the mayor a plan detailing the criteria proposed to award such payments: the mechanism by which the bonus will be nominated, reviewed and approved; the individual payment award amounts; and the total amount of monies set aside for the recognition bonuses during the fiscal year along with a certification that said funds are available within the existing appropriated budget and that the recognition bonus program will not necessitate a supplemental budget request or a supplemental appropriation. (b) Any criteria adopted pursuant to this section shall further the mission of the agency and the city. (c) At a minimum, the recognition bonus program of each agency and department participating shall include a nomination form completed pursuant to a nomination process established by the head of the agency or department and shall include a review of each nomination by a panel of agency staff that includes at least one non-management employee. The head of the agency or department shall notify the employees in his or her respective agency or department of the nomination procedures and forms. (d) Per calendar year, the total dollar amount or cash-value amount of recognition bonus awards to any one individual shall not exceed a gross amount of one hundred fifty dollars ($150.00), and the minimum dollar amount or cash-value amount of any recognition bonus shall be twenty-five dollars ($25.00). (e) Payments for approved recognition bonuses shall be processed through the applicable human resources department and shall be processed through the auditor's office as set forth in subsection (f) of this section 18-76. (f) Recognition bonuses may only be paid in the calendar year in which the individual's performance being recognized is performed. The recognition bonus payment shall be subject to any and all withholdings for taxes, employee contributions for benefits, and any other similar withholding that may be required by law or authorized by the employee. (Ord. No. 101-07, § 2, 3-5-07)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTIICLPAPL_DIV4INPAREBOFetched: 10/27/2026