Fuquay Varina staff recommend $566,000 to implement pay and classification adjustments

Fuquay Varina officials presented a pay-and-classification report recommending a $566,000 implementation to raise the town's market position from 103 to 106 for benchmark job classifications, a step town staff said is intended to keep hiring and retention competitive.

The report, presented by Matt Reese of PTRC and summarized by Town Manager Adam Mitchell, recommends adjusting entry pay for identified classes, reclassifying four positions, and moving roughly 75 benchmark classes so that most job families sit at or above 100% of market entry. "What we're here to ask is for a $566,000 allocation to improve the market position overall from 103 relative to 106," Matt Reese said.

The consultants described a two-track process used for the study: a market-driven analysis and an internal job-content review based on employee questionnaires and interviews. Reese said the study evaluated 175 benchmark classifications and recommended targeted moves to maintain internal equity across series such as fire protection, police, building inspections, and labor/trades.

Town Manager Adam Mitchell told the board the recommendation responds to direction given at the board's retreat to be competitive in the marketplace and to avoid having entry-level positions fall substantially below market. "When we bump that up to at least 100% ... that creates a shift in the range," Mitchell said, noting some positions had previously been at 93'97% of market entry.

Reese described the implementation approach: moving a class grade and giving incumbents a 5% adjustment where a class is reassigned to a higher grade (a full implementation), with a cap at roughly 105% of the midpoint to preserve the merit range. He also said 23 specific classes required movement and most occupational families would end up above 100% after implementation.

The presentation noted that the $566,000 is a recommendation to be included in the FY26 budget deliberations; the board did not take a final vote on this item during the presentation. Adam Mitchell said the recommendation, combined with the planned COLA and merit proposals in the FY26 draft budget, would keep the town competitive with regional peers.

The presentation included references to labor-market data (Department of Commerce) and a recent League/Association of Counties survey used to frame statewide salary trends, but the study itself relied on local job questionnaires, interviews, and PTRC's benchmarking.

Board members asked clarifying questions during the presentation about how grade changes would be applied to incumbents and about the difference between a market analysis and a pay-and-classification study; Reese and Mitchell explained the questionnaire/interview steps and the reconciliation of market and internal equity factors.

The pay-and-classification recommendation will be considered in final budget decisions; managers said continuing annual maintenance and classification work reduces the likelihood of larger, disruptive pay corrections in future budgets.

The consultant and staff recommended full implementation of the classification adjustments be funded from the FY26 budget if the board adopts the proposed allocation.

Clarifying details: $566,000 recommended allocation; study covered 175 benchmark classifications; 75 benchmark classes reviewed and 23 classes recommended to move; four positions reclassified; implementation generally applies a 5% incumbent movement when a class moves a grade; cap at about 105% of midpoint to preserve merit range.

Ending: The report will be folded into the FY26 budget process; no formal appropriation was recorded at the May 5 meeting and the board will consider funding during the budget hearings scheduled by staff.