Huron City employees will no longer receive bonuses based on their years of service to the city.
Huron City Council unanimously voted this week to abolish the program in exchange for a merit-based bonus program instead.
City officials decided to do away with the program late last year during budgeting for the new year.
In addition to the abolishment of longevity pay, city officials also agreed to hold off on any raises for non-union employees in 2011.
The longevity-pay program and the raises would have cost the city between $20,000 and $30,000 this year.
The money will instead be used to pay the employees for their performance as their service continues this year, said city manager Andy White, who proposed the change.
The employees will be evaluated based on observation from their supervisors and be given raises based on the evaluation.