Board weighs step increases, pay raises and benefits trade-offs; directs staff to return final cost options

Bonner County commissioners spent substantial time on salary and benefits assumptions during the budget workshop, weighing options that included (1) moving all eligible employees up one step in their pay schedule, (2) a flat dollar hourly increase for all employees, and (3) alternative ways to improve staff take-home pay through benefit changes rather than straight wage hikes.

Clerk’s Office staff presented draft projections showing the fiscal impact of several options. The board heard a preliminary estimate that a $1.00-per-hour across-the-board raise would increase payroll costs (including employer FICA and related effects) by roughly $893,000; commissioners were also shown model runs for step increases and combinations of flat vs. percentage adjustments. Staff noted they had not yet finalized overtime, HSA/HRA contributions or final insurance premium figures and asked for additional time to fully cost options.

Commissioners discussed the trade-offs between straight-pay increases and benefit improvements. Several members argued a flat hourly raise helps lower-paid employees most directly, while others said increasing employer-paid benefits (for example, additional employer contribution to health insurance or a retirement contribution) can be more valuable for some staff and might reduce taxable income for employees. The board also debated tying additional merit pay to improved — and better-documented — performance evaluations; multiple commissioners asked directors to use the coming year to tighten and standardize performance-review practices so merit-based funding can be distributed fairly in future cycles.

No final formal vote was taken on a flat pay increase that day. Commissioners gave staff direction to (1) gather final insurance premium quotes and broker information; (2) produce a finalized cost estimate of a one-step increase and an across-the-board dollar increase (with payroll effects included); and (3) return the numbers to the board within the next few days so the board could reach a final decision before the budget is adopted. Separately, the board agreed that some existing car stipends would be retained while others would be discontinued (see motor-pool article).

Staff said they would also examine alternatives such as opt-out stipends for employees who have outside coverage (a small cash payment instead of county-provided insurance) and the feasibility of shifting some benefits to increase net take-home pay for employees who do not use county insurance.

The board expressed interest in pursuing both short-term relief for employees (a potential flat hourly increase) and longer-term improvements to merit-pay practices and benefits. Commissioners asked HR and the clerk’s office to return with final figures and proposed policy language that would allow merit pools to be distributed by department managers within an allocated budget pool.