06/04/2007 Council Packet (2) - Laserfiche WebLink

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Memorandum To: Mayor and City Council Members From: Daniel Tesch, Director of Administration Date: 30 June 2005 RE: Non -Union Salaries I apologize in advance for not being able to be with you at your 6 July work session. I have prepared the following report regarding director and non -union salaries for 2005 that I am sending out under separate cover in advance of your Wednesday meeting. At the Council's 2004 goal setting session, concerns about management team compensation was raised. Among the concerns raised then and subsequently include: • Salary compression between directors and first line supervisors. This becomes especially apparent when you factor in first line supervisors are eligible for overtime and directors are not. • The management skills (supervision, budget, planning) required to handle a growing staff and community. • The increasingly complex projects being undertaken by the city. • The out -of -the- ordinary number of evening meetings when compared to other cities. • Concerns about employee retention, and the high cost to residents for replacing the administrator /directors. • Recouping lost market salary adjustments for certain management positions (2003 budget reduction) - considering those increases were not lost to union employees. It was suggested that we are an "above average community" and we want to be able to attract and retain "above average" employees. Staff was asked to look at benchmark figures above the average. You will find included in this packet a chart outlining by position, current salaries, the average salary for each position and what salaries would look like at the 65% percentile. Increases are broken down into an annual adjustment (Cost of Living) and a market increase. If a salary is already at or above the benchmark, the employee will receive a 2% annual adjustment only. The tool the city uses to determine benchmarks is the Stanton Survey. This document is produced annually and looks at Twin Cities metro cities. We look specifically at Group VI Cities — cities between 10,000 and 25,000 in population. You will find attached a list of those cities, and note that we are approaching the higher end of this group — approximately the 75th percentile in population. In addition to salary considerations, this group will receive the same health insurance contributions, ability to participate in Post - Retirement Health Care Savings Plan and other benefits as all employees. This information is being sent out as an individual council mailing. Labor negotiations and background information for all other employee groups are handled internally and not negotiated publicly. We appreciate your treating this material as you would all other labor relation data.