2024.12.16 CC 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: 2025 Salary Resolution DATE: For the City Council Meeting of December 16, 2024 DESIRED COUNCIL ACTION Adoption of Resolution Setting 2025 Salaries and Employee Reimbursement Levels CITY COUNCIL DIRECTION At the August 29, 2024 Mid‐Year Budget Review Workshop, the Finance Department suggested that the City’s salary matrix be adjusted by 5% and that employees who had not yet reached their paygrade maximums be granted step increases. After comparing our salary matrix to those of other comparable metro cities, staff found that our salaries were below average. As a result, staff recommended a 3% cost‐of‐living increase, along with a 2% overall adjustment to the matrix, to bring our salary structure more in line with the comparable cities. During the 2025 budget process the City Council indicated their willingness to include these adjustments in the 2025 budget. Council approved the 2025 budget containing these adjustments at their December 2, 2024 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. Eleven (11) of the City’s twenty‐six (26) full‐time employees will receive step increases. The overall net aggregate dollar increase due to the 5% adjustment, including step increases, equals $153,570, of which $122,015 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 5.6%. It is worth noting that the second Building Inspector and the Community Development Assistant positions are currently vacant and therefore, these positions appear on the salary resolution at the corresponding pay grade minimums. FIRE DEPARTMENT OFFICER SALARIES Hugo’s first ever full‐time Fire Chief started November 20, 2023 and one of their initial priorities were to determine if the current officer positions needed to be restructured. After a thorough evaluation of the department’s structure, the Fire Chief recommended eliminating the Administrative Caption position, while retaining all other officer positions. The 2025 salary matrix contains all of the remaining officer positions. FIRE DEPARTMENT RETENTION PLAN Eleven 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 in 2023 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