Onalaska council approves reserve transfer for internal pay-equity review amid councillor concerns

The Onalaska Common Council approved a resolution to amend the 2025 budget and authorize use of reserve funds to pay for an internal equity and pay-plan review, a measure proponents said will inform future staffing and compensation discussions.

The resolution — identified at the meeting as Resolution 1-2025 — was moved by Alder Sean McAllister and seconded by Alder Diane Wolf. The council approved the measure by roll call; the chair announced the motion passed 5 to 1.

Why it matters: Councilors and staff said the review is intended to provide information about internal pay equity for nonrepresented employees. Supporters said the study will help the city understand whether current classifications and recent reclassifications align internally and whether staffing and pay practices hamper recruitment and retention.

How the council described it: Rick (staff member) told councilors the resolution would move money from reserve funds into the human resources budget to pay for the review. He said the city previously discussed options after an earlier proposal failed in the summer and that staff had considered internal workarounds but concluded an external review was warranted given the city’s 2025 workload and timeline. He said the $16,000 cap reflected a quote from a vendor that had provided pricing.

Dissent and budget concerns: Alder Dan Stevens strongly questioned whether the city should commission a study that could produce recommendations requiring significant new spending. "My fear is that we're potentially going to open up a Pandora's box," Stevens said, noting a concern that the study could identify a large shortfall in total pay that the city would then have to fund. He asked whether the city has a plan if the consultant recommends large wage increases and warned about limited revenue capacity.

Supporters’ view: Other councilors said the study is primarily informational and would aid the council’s ongoing conversations about funding options. Alder Mike Milkey said the review would be “beneficial” to assess recruitment and retention pressures and clarified the review would be for nonrepresented employees only. Alder Diane Wolf asked about timing and the vendor; Rick said staff planned to meet with vendors in February and expected a review to take a couple of months, with a tentative return to council around May or June depending on contractor timelines.

Next steps: Staff said they will seek vendor proposals (Baker Tilly provided the quote that produced the $16,000 figure but staff may solicit additional quotes) and return with the study results for council consideration. The resolution authorizes the appropriation of reserve funds into the HR budget to pay for the review; it does not itself change wages or benefits.