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. CONSENT ITEM: F4 <br />4/23/03 <br />ITEM: City Administrator Compensation Increase <br />SUBMITTED BY: Susan Gehrz, Mayor <br />EXPLANATION: <br />Summary: April 15 was Heather's three-year anniversary as our City Administrator. I used the <br />following factors to develop recommendations for changes in her compensation and contract: <br />1. Performance Review -Based upon a recent review with input from staff and council <br />members, Heather's performance is outstanding by all measures. A copy of the complete <br />written review has been provided to council members and discussed with Heather. <br />2. Fiscal & Staff Management -Over the past four years, the City has reduced our staff full-time <br />equivalent from 13.9 to 11.7. This means we have fewer people to share a workload that has <br />not decreased over time. We have, in fact, increased service levels in public works and <br />communications. This year, Minnesota Finance Commissioner McElroy publicly identified <br />Falcon Heights as a model for fiscal management for Minnesota cities. Not only do we <br />• maximize limited resources by creative cost sharing contracts, but we also have assembled a <br />highly efficient team of employees who we are striving to retain. This cannot work without <br />exceptional personnel management. As evident by the comments from staff interviews, <br />Heather provides the positive leadership and support that enables us to deliver high quality <br />services in the most cost effective way. This saves money for our taxpayers. <br />3. Comparisons with other cities -Falcon Heights continues to be on the low end of City <br />Administrator compensation in the metro area. <br />After 3 years of employment, we pay Heather $53,545 with no car allowance. <br />• Arden Hills (population of 9660) is searching for a new City Administrator and is <br />offering a salary range of $65,664 to $86,400. <br />Mounds View (population of 12,900) is searching for a new City Administrator and is <br />offering a salary range of $72,400 to $90,600. <br />4. Comparison with other city staff -Unlike our other staff positions, the City Administrator has <br />no regular step increases. She serves at the will of the council with salary and contract terms <br />negotiated every year. All other employees received a 2% salary increase as of January 1, <br />2003. Her current salary is $53,545 and the highest paid employee currently earns $54,519. <br />• <br />~b <br />