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Nicholasville approves market-based pay adjustments for electric department after consultant study

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Summary

Commissioners approved a set of market-aligned wage adjustments for the electric department following a consultant market analysis and internal review; commissioners discussed documenting training and certification requirements to differentiate job classes.

Nicholasville City commissioners voted Monday to approve pay adjustments in the city electric department based on a market analysis, city staff said. The adjustments update hourly rates for multiple electric employees, aligning compensation to competitive private- and public-sector benchmarks, staff said.

Kathy, the staff member presenting the item, said the city contracted HRG (also referred to in discussion as Hannah Group) to conduct a comprehensive market analysis and compensation plan. The analysis confirmed the city’s internal findings that electric-department pay lagged market rates and that competing employers include both municipal utilities and private industry. The approved changes set new hourly rates effective April 22, 2025, for a list of employees presented to the commission.

Commissioners discussed documenting minimum training or certification paths to distinguish job classes within the electric department. One commissioner suggested establishing required courses (for example, lineman school for certain levels) rather than relying solely on years of service; Kathy said the department already provides training and that the superintendent currently makes classification determinations, but staff will explore documenting minimum training requirements.

Staff said the market analysis treats job classifications by function rather than tenure, and the new rates reflect that principle. The motion passed on roll call.