Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Compensation topic
No spam. Unsubscribe anytime.
Coconino County proposes 2.5% merit, $500 one-time evaluation payment and midyear check-in to address rising costs
Summary
County management recommended a 2.5% merit increase for most county employees, a $500 one-time payment tied to annual performance evaluations, and a possible midyear $1/hour adjustment to respond to local minimum wage changes and recruitment pressures.
Coconino County officials recommended a three-part compensation strategy on June 3 to help employees cope with higher costs while preserving the county’s longer-term fiscal stability.
The county manager’s recommended FY26 budget proposes a 2.5% merit increase for staff who are not covered by law-enforcement step pay plans. In addition, the manager recommended a $500 one-time payment to employees who complete the county’s annual performance evaluation process, and a midyear check-in to consider a $1-per-hour adjustment depending on actual revenue performance and the Flagstaff minimum-wage update.
Human Resources Director Krista Cedillo and finance staff explained the rationale: a percentage increase helps maintain pay-range spacing and avoids compression between longer-serving employees and new hires, while a flat, one-time payment delivers tangible near-term support to workers. Finance showed how those combined elements affect a typical mid- and entry-level salary and provided estimates for general fund and other-fund shares of the cost. Staff said the $500 payment would be gross and subject to payroll taxes.
Board members pressed for more clarity on distribution and equity. Supervisors asked staff to prepare clearer tables that show (a) how much of the cost is borne by the general fund versus special funds and grants, (b) the dollar impact at different salary levels, and (c) vacancy and turnover information by department. Several supervisors also asked staff to show an alternative scenario that packages compensation as a single recurring percentage rather than a split of merit, one-time and midyear adjustments.
Why it matters: County staff provide a large share of the services residents rely on year-round. Supervisors emphasized that keeping employees competitive with other local employers (city, NAU, community college and regional public safety employers) remains key to retaining staff and preventing costly turnover.
Next steps: Finance and HR will provide more detailed breakdowns requested by supervisors, and the board will continue department-level budget hearings this week. Management said the January midyear check-in is meant to be a policy conversation, not an automatic payment, and would follow updated revenue information and the August Flagstaff minimum-wage announcement if applicable.
