Tucson HR outlines FY26 pay progression, dispute process and '4,900' employee data drive

Human resources staff on Tuesday walked the Tucson City Council through the city’s FY26 compensation plan, describing pay‑progression timing, a market adjustment proposal and a broad personnel data‑collection effort city leaders said is intended to correct inconsistencies in starting pay and placement.

Human resources Director Dr. Terry Train told the council staff implemented “in‑range pay placement” earlier this year that affected 520 workers and that the pay‑progression recommendation is set to be implemented in time for the first July payroll. She also said a market pay adjustment proposal would affect roughly 560 employees across about 100 classifications if adopted by the council.

The presentation emphasized a separate, large scale effort staff calls the “4,900 project,” a Workday‑based campaign that will ask each employee to enter updated information about job history, education and certifications. “That entry point will start right around August, early September,” Train said, and will remain open through early February so staff can analyze placements with the city’s base pay calculator methodology.

Train also described a formal dispute process that lets employees submit compensation questions in the spring. The city received 93 dispute submissions this year, she said; staff planned to send response letters to all submitters by the close of business the next day. Five of those submissions required additional research, and staff expected to follow up with those employees in 10–12 business days with more detailed findings and, where needed, virtual or in‑person meetings.

Council members asked about the dispute categories, which Train said are limited by city policy. “Starting pay, job descriptions, market adjustments, market comparators, our newly introduced performance evaluation system and salary structure in general” were among the most common topics, she said. Council Member Ullick asked what “reviewed — no changes” meant in the response letters; Train said letters will state the category, the reasoning and cite any applicable city code or policy and provide a link to follow‑up contact options.

Council members also pressed staff on comparators used for market surveys and on special pay structures, including a skill‑based pay program for Tucson Water technicians that Train described as an approximately 20‑year‑old program being reintroduced. Tucson Water and HR staff said the skill‑based program is focused on the utility technicians workgroup and is not a department‑wide program.

Train and city management said the council’s adoption of a multiyear compensation strategy and the FY26 budget would move the city closer to targets in memoranda of understanding with labor partners; Tim — the staff presenter identified in the briefing — said if the council adopts the recommended three‑year compensation strategy and the budget, the city “would reach those goals” (as negotiated in MOUs) over the multiyear period.

The HR team said its goal for the 4,900 project is to produce a data baseline that allows the city to compare each employee’s placement to market survey data and determine resource‑constrained adjustments over FY27 and FY28.

Council members praised the outreach and asked for continued communication as letters go out and the Workday entry window opens.

Ending: The council received the update and did not take a formal vote on policy changes; HR staff will begin employee notifications and additional research on the five disputed submissions and continue rolling out training on the base‑pay calculator and dispute categories.