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Council approves pay-study adjustments and 5% compensation increase; estimated $1 million annual impact
Summary
Council approved a budget amendment implementing a pay study and a 5% compensation increase for town employees; staff estimated the full-year cost at about $1 million and said funds would be moved within the existing budget and covered by reserves where needed.
The Town Council approved a budget ordinance amendment on May 6 to implement pay-study adjustments and a 5% compensation increase for town employees. Town staff told the council the six-month cost of the pay-study implementation across funds is about $500,000, implying an annualized cost of roughly $1 million. The general fund’s six-month share was estimated at $330,000; the remaining cost was split between water, sewer and electric enterprise funds. Parks and recreation received an additional $25,000 for seasonal staffing and programming.
The manager and staff confirmed the funds will be reallocated from existing budget lines and that council approval was required because the change exceeded the department-level threshold (over 10% of the non-departmental line) that triggers council action. Council members commended staff for the study and the decision to invest in employees; one council member noted the town’s audited fund balances gave the council flexibility to act.
Council voted to approve the amendment. Staff said the 5% increase and pay adjustments were incorporated prior to January 1 for payroll planning and that the budget presented to council will reflect the revised compensation totals.
