03-23-2022 Council Packet - Laserfiche WebLink

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The Personnel Committee reviewed the proposed pay grades and grid, and discussed the details and financial impacts on implementing this new compensation system. After discussion, the Committee recommended City Council approval of the revised pay grid system as proposed by DDA HR, Inc. with employees placed in recommended steps and an implementation date of June 29, 2022. All employees will be placed in the closest step to where they are currently with the exception of the Customer Service Specialist and Parks and Recreation Director/Communication Director. Both of these positions will be placed in the second step above their current salary to reduce disparities and meet internal equity goals. Fiscal Impact The total impact to the current budget for implementing the new pay grid system as proposed is approximately $32,560 ($18,400 General Fund and $14,160 Water and Sewer Fund). The adopted 2022 budget includes a $53,480 Council Contingency line item which can be utilized to implement the classification and compensation study. As a reminder, the Public Works Apprentice position has already been moved into the new pay grid and was approved on February 23, 2022. If the new pay grid system is adopted as proposed, the fiscal impact for 2023 would be approximately $118,400 ($69,500 General Fund and $48,900 Water and Sewer Fund). With a preliminary estimate of a 3.3% market rate adjustment, there will be an approximate one half percent (.50%) levy impact for 2023. This is a nominal impact due to the fact that $53,480 was levied in 2022 to address the classification and compensation analysis which will be reallocated to the General Fund in 2023. In future years, the levy impact will be approximately 1.60 % per year as employees move through the steps and a conservative market rate adjustment is applied. As a comparison, the levy impact for salary rate increases in 2022 under the previous pay plan was approximately 1.45%. City s taff is recommending adoption of the proposed pay grid system developed by DDA Human Resources, Inc., at the March 23 City Council meeting to enable the City to attract, hire, and retain a high level of talent as positions become available. RECOMMENDATION Approve the Pay Scale and Grid developed by DDA Human Resources, Inc., and adopt the proposed implementation date of June 29, 2022.