Safety Harbor commission votes to adopt phase 1 of pay study, approves 5% market adjustment

The Safety Harbor City Commission on Monday voted 5-0 to adopt phase 1 of a citywide compensation and benefits analysis, approving a 5% market adjustment to the city pay plan, adding Juneteenth as a paid holiday and adopting an updated pay-grade structure effective as early as March 30, 2025.

City Human Resources Director Michelle Posowitz presented the phase 1 implementation after consultants PayPoint HR delivered a compensation and benefits study in 2024. Posowitz said the immediate action increases pay rates across all full-time and part-time positions, elevates any employee paid below a new grade minimum to that minimum, and aligns the pay plan “with the market as recommended.” She told commissioners the six-month fiscal 2025 cost of the change is an estimated $259,715 in salary increases and $84,667 in associated benefits, a combined total of $344,382; the commission had previously earmarked about $300,000 for midyear implementation and staff said the difference can be offset in part by current vacancies and attrition.

The vote followed more than an hour of discussion in which commissioners pressed staff on budget impacts, the number of pay grades and whether targeted adjustments for hard-to-fill departments would be preferable to a citywide increase. Vice Mayor Steingold and others said the 5% adjustment is a ‘‘step in the right direction’’ to make Safety Harbor more competitive with neighboring jurisdictions; several commissioners asked staff to return with options for phased or department-specific actions as part of the FY 2026 budget process.

Renee, Public Works Director, told the commission her division currently has 54 full-time equivalents and about 14 vacancies, and that nearby cities are hiring similar workers for substantially higher pay. A Water and Sewer foreman identified in public comment as Viscola described losing a recent hire after a year of training because the worker could earn roughly $5 an hour more elsewhere. Commissioners cited those examples as key reasons for moving now.

Staff explained funding mechanics to the commission: the quoted FY25 cost reflects a six-month, midyear implementation estimate; as vacant positions remain unfilled, the near-term payroll impact will decline. City leaders said they plan to include further compensation phases and policy changes in the FY26 budget conversation and to consider targeted adjustments where recruitment pressures are highest.

Discussion vs. formal action in the record: commissioners debated the scope of the pay-grade structure, the number of grades (staff proposed 25 grades) and the tradeoffs between consolidation of grades and flexibility to adjust hiring rates. The formal action before the commission — adoption of phase 1 as presented, including the 5% market adjustment and the Juneteenth holiday — carried on a 5-0 recorded vote.

The commission directed staff to: return with budget options for FY26 that could fund subsequent phases, examine targeted pay adjustments by department (notably public works), and continue work on classification and promotional policies to reduce pay compression. The commission also requested clearer budget scenarios for full-year costs and for alternative phase schedules.

The action concludes the first implementation step of a process that began when the commission authorized a compensation and classification study in November 2023, contracted with PayPoint HR in early 2024 and received the consultant’s reports last November. Commissioners said they want more detailed options before the July budget adoption but indicated political support for closing market gaps to retain and recruit staff.