Council reviews FY26 compensation, benefit and staffing proposals; committee recommends step-plan reductions
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
City staff presented a FY26 personnel proposal that would keep FTEs flat at 349.22, reduce pay-step range to 10 steps, apply a 1.75% market adjustment plus 2% merit increases and use targeted measures to retain and recruit public-safety staff.
City staff and the council's personnel committee presented the administration's FY26 compensation, benefits and staffing proposal during the July 15 work session, outlining step-plan changes, market adjustments and recruitment incentives intended to retain employees without increasing full-time equivalent positions.
The personnel committee reported a proposal that keeps the city's Full-Time Equivalent (FTE) count at 349.22 for FY26 while reducing the number of pay steps in the city's step plan. Staff said the goal, begun in FY24, is a gradual reduction of steps from 14 toward a nine-step structure; the FY26 recommendation would remove two more steps and put the plan at 10 steps overall while adjusting the step plan up 1.75% for market. The city also proposes a 2% merit pool tied to favorable annual performance evaluations. For employees who have topped out of their ranges, the city proposes a lump-sum payment rather than an across-the-board step increase.
Staff emphasized how the proposed package affects public safety: the combination of step reduction, merit and market adjustments yields a potential pay change of roughly 7.75% for many entry-level officers and firefighters (automatic 4% step-related increase when steps are merged, plus 2% merit and 1.75% market). Staff said the majority of line-level officers would receive that combined adjustment, with employees who have topped out receiving a smaller lump-sum benefit.
To improve recruitment, staff reported increasing a firefighter hiring incentive from $5,000 to $7,500, paid in three equal installments (first paycheck, six months, 12 months). The city reported hiring six new firefighter-paramedic combination hires and using lateral hiring and over-hire strategies for police and fire to reduce vacancy impacts. Staff also highlighted flexible testing schedules, expanded social-media recruitment, and a LinkedIn presence for the police department.
Employee benefits and wellness items were also discussed. Staff said the city's self-insured medical fund is about $3.5 million better off than if the city had remained fully insured; staff proposed a one-time HSA contribution for employees if the plan achieves at least 10% savings, and a smaller contribution if savings fall between 5% and 10%. City staff said the medical insurance cost will be absorbed by the city for the fifth consecutive year; dental premiums were unchanged and vision premiums are increasing by about 15% (roughly $0.41 per pay period for single coverage).
The presentation included new state-law items affecting personnel (cancer screening requirements for firefighters, limits on severance pay under HB 2237, military leave rules, and a change to TMRS employee contribution options). No formal council vote was taken on the FY26 personnel recommendations during the work session; staff said they would bring a formal budget package forward for adoption.