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Prescott Valley negotiates benefits renewal; staff recommends 5% base pay adjustment in tentative budget
Summary
Human resources staff told the council that the town negotiated a benefits renewal that reduces an initial insurer quote and that the tentative budget includes a recommended 5% base pay adjustment for the general pay plan, with additional midyear funds reserved for compression adjustments.
Director DeChant told the council on May 1 that the town entered benefits renewal discussions with higher than expected utilization and that the carriers initially quoted increases between 30% and 40%. Director DeChant said the town negotiated the renewal down and secured a 19% increase for the plan.
“We were able to negotiate that down through the process to a 19% increase on our benefit plan,” Director DeChant said. She told council the town will implement a three‑plan option this year to give employees choices and to help control costs going forward.
On pay, Director DeChant said staff is recommending “a 5% base adjustment for our general pay plan.” She said the town implemented a new pay structure with a pay study that took effect July 1, 2023, and that tentative budget funds include the 5% base increase; additional dollars are being held to address compression adjustments after a midyear analysis.
Staff said the increase in benefits costs and the recommended base adjustment were included in the preliminary budget presented to council and that further review and any compression‑related adjustments will be presented midyear.
Ending: The council received the preliminary personnel and benefits assumptions; staff included the negotiated benefit renewal and a recommended 5% base adjustment in the tentative budget materials to be considered May 22.
