Forest Lake council approves up to $20,000 contract for classification and compensation study

The Forest Lake City Council voted June 13 to authorize execution of a contract with McGrath Human Resources Group for a classification and compensation study at a cost not to exceed $20,000.

City staff said the study, commonly used by governments, will score and compare jobs against the market to identify where classifications and pay may differ from peers. Staff emphasized the study's role in informing compliance with Minnesota pay-equity reporting and in guiding wage decisions during upcoming union negotiations.

Mark (councilmember) and other councilmembers discussed the timing and implementation approach. Staff said the study would produce recommendations only; council retains discretion over any changes. The city plans to phase implementation to avoid budget shocks and align changes with contract expirations.

A labor-management committee reviewed proposals and recommended McGrath after evaluating six finalists and checking references, staff said. The motion to authorize the contract carried.

Council discussion noted the pay-equity reporting requirement occurs every three years, though an outside third-party study is customary rather than mandatory; staff said roughly a 10-year cadence is common for full classification reviews. The contract will be used to evaluate job scoring factors such as responsibilities, education and experience and to propose market-aligned pay ranges for the council to consider during bargaining and budget planning.

The council did not specify implementation details or a phased schedule at the meeting; staff will return with recommendations and next steps.