Sandy City Council reviews employee compensation adjustments amid inflation challenges

During a recent Sandy City Council meeting held on March 18, 2025, city officials provided a preview of the fiscal year 2025-26 budget, focusing on employee compensation and the implications of inflation on city salaries. The discussions highlighted the city's ongoing efforts to align employee pay with market standards amid rising living costs.

The council noted that in response to significant inflation rates, the city implemented a 6% cost-of-living adjustment (COLA) for all employees in 2022, followed by a 7.5% adjustment in 2023. However, in 2024, the budget constraints led to a modest 1% COLA, which officials acknowledged was insufficient to keep pace with compensation trends in other cities. This situation has raised concerns about the city's ability to attract and retain talent, particularly in public safety roles.

Sandy's compensation strategy is based on a comparative analysis with other cities categorized by the Utah League of Cities and Towns. The city aims to match the average pay for public employees and exceed it for public safety personnel. The analysis included 45 positions, representing 61% of the city's workforce, and revealed that while Sandy's average pay is approximately 13% above the group average, many positions still fall below the average at the lower end of the pay scale.

The council also discussed the importance of benefits in the overall compensation package. Sandy's fixed benefits, such as health insurance, are about 5.8% above the group average, while variable benefits, which include retirement contributions, are slightly below average due to the city's non-participation in Social Security.

Despite the city's efforts to maintain competitive compensation, the council acknowledged a decline in relative pay for public positions compared to previous years. The data indicated that 59% of positions are now below the group average, raising concerns about the city's competitiveness in attracting skilled employees.

As the council prepares for the upcoming budget, the discussions underscored the need for a strategic approach to employee compensation that balances fiscal responsibility with the necessity of retaining a skilled workforce. The city plans to continue monitoring compensation trends and may need to adjust its strategies to ensure it remains an attractive employer in the region.