Commission debates city manager salary, contract changes and pension multiplier study

Lynn Haven commissioners on Tuesday reviewed amendments to the city manager’s employment agreement, including clarifying personnel‑policy application, a proposed base‑salary increase and a request to study pension multiplier options; commissioners gave staff direction but did not finalize the contract.

What was on the table: City legal staff summarized a revision that would extend the manager’s contract through January 2027, explicitly apply the city’s personnel policies (holidays, leave accrual, state‑of‑emergency rules) to the manager, and add language tying any increases in base salary or other benefits to annual performance evaluations. The draft also included proposed changes to automobile/phone benefits and struck certain vesting language to reflect recent pension changes.

Salary and performance discussion - The draft includes a proposed base salary increase from the current amount (stated in the meeting as $158,324.61 following a COLA applied in October 2024) to $178,000. Commissioners debated whether to set an immediate flat raise, to grant a merit percentage tied to the evaluation, or to use a smaller merit plus COLA approach. - Jennifer (staff) reported the current base after the October 2024 COLA as $158,324.61; commissioners reviewed historical base pay for prior city managers (Michael White, Joe Schubert) and compared peer cities (Destin, Panama City, Panama City Beach, Callaway) to assess market alignment. - Consultant Janet Herrigo presented the annual evaluation results: the city manager’s overall average score was 4.22 on a 1–5 scale (4 = “excellent” in the rating scheme); last year’s overall average had been 4.63.

Commissioner positions and direction - Some commissioners argued for a modest percentage increase tied to the evaluation process (one commissioner proposed 4% or 5% as reasonable; another proposed 6% or 7% for higher ratings). One commissioner recommended setting the base at $165,000 or adding a 4% merit now and then applying COLAs. - Several commissioners emphasized that the commission had not consistently discussed merit increases in prior years, and that addressing backlogged merit reviews is a priority; one asked staff to calculate what prior merit increases would have produced if they had been granted historically.

Pension multiplier and benefits - The draft asks the commission to consider requesting a study from the pension board to evaluate the impact of increasing the multiplier used to calculate pension benefits for the city manager position; staff explained that any multiplier change would require pension board and ordinance action under state rules. - Staff noted other jurisdictions sometimes cover pension contributions at the employer share for executive positions as an alternative to a multiplier change.

Outcome: Commissioners did not adopt the contract at this meeting. They directed staff to prepare specific contract language reflecting the commission’s preferences (including options tied to a 5% merit, or other percentage to be set), to provide calculations showing the fiscal impact (including projected COLAs), and to request a pension‑multiplier impact study for presentation at the next meeting, when the commission expects to consider final action.

Quotations - Jennifer, staff: “The current base salary, based on a COLA addition in October of 2024, is $158,324.61.” - Janet Herrigo, evaluation consultant: “The overall score for the city manager is 4.22… If you remember, 4 is considered an excellent score.”

Ending: The commission instructed staff to return a redlined contract with the commission’s chosen salary option, a fiscal impact memo, and the pension‑multiplier study; a final vote was deferred to the next commission meeting.