Rosemount council approves 2024 pay equity compliance report after staff explanation

The Rosemount City Council on Jan. 21 voted 5-0 to approve the city’s 2024 pay equity compliance report and the city’s response to the Minnesota Office of Management and Budget.

Council Member Esler asked council to pull the item for discussion and asked, “What are the ramifications? What are the consequences? What does that mean?”

A staff member responding to council said the city is required to file a pay equity report with the Minnesota Office of Management and Budget every three years and that the city failed one of four statutory tests, which looks at factors including longevity, pay ranges and salary scales. The staff member said the city submitted a written response explaining the reasons for the result and noted that recent changes to the city’s pay structure — including expanding step progression from six to eight steps — affected the numbers.

The staff member said the city does not expect the state to impose daily penalties and that the more likely next step is a discussion and negotiation with the state to explain Rosemount-specific circumstances. The staff member also said failing that test could affect eligibility for some state funding, but added the city “doesn’t utilize [that funding] really anyway.”

Council Member Tyson moved to approve the report; Esler seconded. Roll-call votes recorded Esler, Klimpel, Weisensoe, Tyson and one other council member as voting “aye.” The motion passed 5-0.

The council did not adopt any immediate remedial steps at the meeting; staff said the city will engage the state Office of Management and Budget to discuss next steps and to explain the city’s compensation-study-driven pay structure changes.

The vote completes agenda item 6Q, approving the city’s pay equity compliance report for 2024.