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Payson staff recommends using Employment Cost Index, not COLA, for FY26 pay adjustments; no recommended salary increases tonight

3220846 · April 1, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Human resources presented the town—s compensation philosophy April 1, explaining use of the Employment Cost Index (ECI) and a market analysis to set pay grades and describing a separate step-plan approach for police and fire; staff did not present a recommendation for FY26 salary increases and asked council for input ahead of open enrollment.

Human resources presented Payson—s compensation philosophy and pay-plan process at the April 1 budget work study, explaining how the town uses a market comparison and the federal Employment Cost Index to set periodic adjustments to town pay grades.

Key points: - Method: The town performs a market analysis (most recently in 2024) comparing Payson—s pay grades with a set of similarly sized Arizona agencies and uses the midpoint of the market as the benchmark. Where no direct market comparable exists, staff uses internal equity to place unique positions. - ECI vs. COLA: Human resources recommended…

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