Pennington County commissioners voted Sept. 19 to pay employee step increases on each worker’s anniversary month instead of on Jan. 1, while keeping a previously approved 2.9% cost‑of‑living adjustment. The board said the move will smooth budget timing and reduce short‑term cash pressure while preserving the COLA adopted earlier in the budget process.

The change follows discussion of personnel cost timing after commissioners reviewed the FY2026 provisional budget and the cost of applying step increases across hundreds of employees. County staff presented alternatives that showed moving step payments to anniversary months reduced the immediate-year payroll cost by about $311,000 compared with applying them on Jan. 1.

Commissioners said the anniversary‑month approach gives department heads authority over the timing of a step in relation to employee performance and reduces compression created when many employees receive increases simultaneously. County staff confirmed the step payments will continue to be conditioned on the existing performance‑review process: the first pay period in the anniversary month will be used to implement the step increase, subject to a positive performance review being on file.

The board did not change the 2.9% COLA previously built into the FY2026 provisional budget. Staff noted that insurance renewals and other personnel line items remain under review and will be finalized when the board adopts the final budget.

Implementation details: payroll was directed to apply increases in the first pay period of each employee’s anniversary month; department heads retain responsibility for performance reviews that trigger steps.