County Manager proposes 2.5% merit raise and $500 one-time payment for employees

The Coconino County Board of Supervisors convened on May 5, 2025, to discuss the fiscal year 2026 budget, focusing on employee compensation and financial strategies amid ongoing economic uncertainties. The meeting highlighted a proposed 2.5% merit increase for most county employees, excluding law enforcement personnel, which aligns with the county's ten-year financial plan. This recommendation aims to balance employee retention and budgetary constraints while addressing concerns about salary compression, where the pay gap between employees narrows over time.

In addition to the merit increase, the board proposed a one-time payment of $500 for employees who complete their performance evaluations. This initiative is designed to encourage participation in the evaluation process, which has been inconsistent in the past. The total cost for this one-time payment is estimated at $500,000, with $325,000 sourced from the general fund and $175,000 from other funds. The board emphasized that this payment is not recurring, allowing for flexibility in future budget considerations.

A significant point of discussion was the potential for a midyear salary adjustment, possibly a $1 per hour increase for all non-law enforcement employees, contingent on financial conditions and the local minimum wage adjustments based on the Consumer Price Index. This proposal aims to keep county salaries competitive, particularly in light of rising living costs in the region.

The supervisors acknowledged the importance of transparent communication regarding salaries and compensation structures to attract and retain talent. They expressed a desire to simplify the compensation framework, making it clearer for prospective employees what they can expect in terms of salary and benefits.

Overall, the meeting underscored the board's commitment to addressing employee compensation while navigating the complexities of budget management in a fluctuating economic landscape. The discussions set the stage for further evaluations and adjustments as the fiscal year progresses, with a focus on maintaining a motivated workforce and ensuring financial sustainability for Coconino County.