Fond du Lac council hears pay-study that would reshape city pay grades, recommend Jan.1, 2026 implementation

A consultant briefed the Fond du Lac City Council on a comprehensive wage and compensation study on July 23, outlining a proposed new pay structure and a recommended implementation date of Jan. 1, 2026. City Manager Moore said the recommended costs have been built into the city's 2026 budget and staff will ask council for a final personnel decision during the September budget process.

Why it matters: The consultant and city staff said the study is intended to address recruitment and retention issues by aligning pay ranges with comparable Wisconsin cities and private-sector benchmarks. Staff told council the new structure and implementation approach were designed to be budget-feasible for 2026 while prioritizing employees currently paid well below market.

Key findings and recommendation: Maryann Oyes of the Archer Group told the council the study covered roughly 225 employees and about 140 job titles. The analysis found the city's current pay ranges are generally at the low end of a competitive market range; 33% of job range midpoints were below the competitive band identified in the survey. The consultant recommended moving from the city's current 18 pay grades to 24 grades, expanding each grade's range width to about 40 percent, and increasing steps from 11 to 13 to add more top-end pay growth.

Implementation approach and timing: Under the recommended implementation, 76 employees who are paid below the new grade minimums would be moved to Step 2 of the new structure on Jan. 1, 2026 (that is: placed at the new minimum, then advanced one additional step). Other employees would be placed on the nearest step that does not reduce pay and then advanced one step on the same date. Staff and the consultant estimated every employee would receive at least a 2.6% increase; employees below the minimum would receive larger increases. The city manager said staff will ask council for a tentative approval during the September budget meeting and, if supported, letter notifications to employees would follow.

Questions and concerns from council: Council members asked about pace to the top steps and possible effects on turnover, distribution of low-paid jobs across departments, and how the plan balances pay and benefits. Oyes said the proposed plan purposefully increases the top end of ranges to strengthen long-term retention, and that the 76 employees below minimum were spread across multiple departments rather than concentrated in a single area. Council also discussed limiting routine reclassifications; Moore said the city is placing a moratorium on routine reclasses unless a job has significantly changed.

Next steps: The city manager told council staff will seek a budget decision in September; if council approves the personnel funding, individual employee notices showing new grade and step would be issued before implementation on Jan. 1, 2026.