Fond du Lac council hears recommended pay-structure overhaul, 76 employees targeted for immediate increases

Mary Ann Oyes, a lead consultant from The Archer Group, presented the results of a comprehensive wage study to the Fond du Lac City Council on July 23, 2025, proposing a revised pay structure to be implemented Jan. 1, 2026. The consultant said the study covered about 225 employees in roughly 140 job titles, used a market survey of 14 peer cities and private-sector data, and identified 76 employees whose current pay ranges fall below the competitive market minimums.

The study recommends expanding the city—s existing pay grades (currently 18) to 24 grades and increasing steps from 11 to 13, widening range width from about 29% to 40%, and adopting a market-aligned competitive midpoint. "We found only three jobs where your current pay ranges are higher than 10% above market, but 33% of the jobs have a range midpoint that's below that competitive range," Oyes said. The proposed implementation would place employees below the new minimum at step 2 (minimum plus one step) and move other employees to the closest higher step without reducing pay; every employee would receive at least a 2.6% increase on implementation.

City Manager Tricia (Tricia) Davey Moore told council the recommended costs have been incorporated into the City—s 2026 budget and described the plan as affordable. "The costs have been incorporated into the city's budget," Moore said. Council members asked about timing, the value of adding steps, reclassification policy, and how the city will communicate individual impacts to employees; Oyes and Moore said individual letters showing new grade and step would be issued if council gives tentative approval during the September budget meeting.

The consultant also reviewed benefits: Fond du Lac—s health and ancillary benefits were described as above-market in total contribution, and when combined with pay the city—s total compensation is more competitive. Oyes noted the city's health-plan employer contribution is about 25% higher than the peer average and cited on-site employee clinic, Teladoc, and other add-ons as differentiators.

Council member questions focused on (1) whether high-paid job incumbents would still receive step increases (Oyes said the same implementation rules apply and changes depend on individual placement within new ranges), (2) whether increases would chase the market or pay above it (Oyes said the recommended approach aligns with the city's stated philosophy of paying competitively at market average but could be adjusted), and (3) reclassification frequency (Moore said the city will place a moratorium on routine reclassifications except for significant job changes).

Next steps: Moore said he would ask council for a tentative thumbs up or down on personnel outlay at the annual budget discussion in September; if the proposal receives favorable direction, individual letters will be issued in late September and the implementation would take effect Jan. 1, 2026. The council did not take a formal vote on the wage-study recommendations during the July 23 meeting.

The report and full implementation cost scenarios will be available to staff and council as the budget process advances.