11-22-95 Council Workshop Minutes

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MINUTES CITY COUNCIL NOVEt~SBER 22, 1995 performance. The Administrator reported that he obtained a proposal for a merit-based pay system from the League of Minnesota Cities. Their recommendation was basically the same system which the City currently has in place. Fahey suggested that most businesses will pay the competitive market rate and use performance appraisals for a development tool. Scalze pointed out that the 1996 Budget proposes an overall salary increase of 5.1%. However, the City Administrator has not proposed an increase in his own salary. The Administrator pointed out that he is currently at the top of his pay scale, as are some other employees. Fahey asked for an explanation of the salary scale system, which the Administrator provided. Fahey felt the average salary increase of 3.5o proposed by the Administrator was hiqh, pointing out that the average is about 30. Morelan pointed out that on average salary scales moved 3.5%. If the employee did not do a good job, that employee may not have moved within the scale. Fahey pointed out that the Council used to get into discussion about salary scales. In reviewing the Administrator's scale, Fahey suggested that the competitive salary range was $48,500 to $55,000. Fahey asked if the City was gettinq into paying the top scale for all City positions. The Administrator pointed out that he did not set the salary scale for his position, and that it was set by the City Council. The Administrator also stated that for other positions, the top of the scale is not beyond the competitive norm. Fahey stated that the salary for the City Administrator position is competitive, and suggested he would like to look at the City's other salary scales and see how they line up with quartiles. Fahey stated that the City Administrator has done an outstanding job for the City, and pointed out the turmoil there has been during the past year. Fahey suqgested that the Administrator keeps the Council well 2