2023.12.18 Packet - Laserfiche WebLink

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14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762‐6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Bryan Bear, City Administrator SUBJECT: 2024 Salary Resolution DATE: For the City Council Meeting of December 18, 2023 DESIRED COUNCIL ACTION Adoption of Resolution Setting 2024 Salaries and Employee Reimbursement Levels CITY COUNCIL DIRECTION At the August 30, 2023 Mid‐Year Budget Review Workshop, the Finance Department suggested that the City’s salary matrix be adjusted by a 4.5% cost of living increase and that employees who had not yet reached their paygrade maximums be granted step increases. During the 2024 budget process the City Council indicated their willingness to include these adjustments in the 2024 budget. Council approved the 2024 budget containing these adjustments at their December 4, 2023 Council Meeting. After consulting with Department Heads, and with the assistance of the Finance Department, the City Administrator hereby submits the attached salary resolution for City Council consideration. SALARY ADJUSTMENTS The proposed resolution incorporates the Council’s previous actions and direction to staff as stated above. Thirteen (13) of the City’s twenty‐six (26) full‐time employees will receive step increases. The net aggregate dollar increase due to a 4.5% cost of living adjustment equals $117,074. The overall net aggregate dollar increase, including the cost of living adjustment and step increases, equals $138,644, of which $114,533 is contained in the general fund budget. The remainder is included in the water and sewer operating fund. The overall budget for employee wages will increase by 5.33%. It is worth noting that the Community Development Assistant and Accounting Clerk positions are currently vacant and therefore, these positions appear on the salary resolution at the corresponding pay grade minimum. FIRE DEPARTMENT OFFICER SALARIES Hugo’s first ever full‐time Fire Chief started November 20, 2023 and one of their initial priorities is to determine if the current officer positions need to be restructured. The 2024 salary matrix contains all of the current officer positions and based upon the Chief’s recommendations these positions and salaries may be adjusted throughout the year. FIRE DEPARTMENT RETENTION PLAN Ten years ago, the Fire Department implemented a retention program designed to provide an incentive for firefighters to remain in the department for at least ten years. This program increased the hourly rate of pay by $0.50 for each firefighter that completed at least 5 years of service. The hourly rate of pay for those that qualified would increase an additional $0.50 per hour, each year, until years of service reached ten. The program has been successful and last year the Fire Chief has asked that the hourly rate of pay for those who qualify be increased by an additional $0.50 per hour. The salary resolution contains a provision whereby firefighters who have completed at least 5 years of service (but less than ten) on the department as of 01/01/2024 will receive an additional $1.00 per hour.