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City presents compensation and classification study recommending 2.5% COLA and targeted adjustments
Summary
Bolton Partners presented a city-commissioned classification and compensation study recommending the city's pay philosophy target at the 60th percentile, a 2.5% cost-of-living adjustment in FY2026 and capped adjustments up to 7.5% for positions below market; estimated cost roughly $1,000,000.
City staff and Bolton Partners presented the results of a city-wide classification and compensation study at the March 17 council meeting, offering recommendations to align Rockville pay and classification practices with regional peers.
Dan Ritberger, president of Bolton’s Total Rewards Practice, described the firm’s five-step review of job documentation, market benchmarking and total compensation. Bolton recommended a compensation philosophy targeting the 60th percentile of market pay and a modernization of the city's point-factor classification approach to a job-family and career-level framework.
Susan Seelig, presenting staff’s summary of budget implications, said the recommended FY2026 budget includes a 2.5% cost-of-living adjustment and targeted increases for employees identified as below the market midpoint, capped at 7.5% per employee. “The estimated total cost for the recommended salary adjustments is approximately $1,000,000,” Seelig said during the presentation.
Key findings and recommendations discussed: - Market standing: base pay ranges were modestly below market overall (city ranges about 96.6% of a 60th percentile aggregate), with variation across pay structures; police, union and administrative structures showed differing gaps. - Short-term budget actions: the FY2026 recommended budget includes a 2.5% COLA and range/individual adjustments capped at 7.5% for those below competitive pay points. - System changes: Bolton recommended updating job documentation, adopting a job-family/career-level approach to classification and replacing the outdated point-factor system. - Total compensation: Bolton’s review included medical, retirement and paid time off comparisons; retirement and welfare benefits were broadly competitive, with minor differences noted.
What happens next: staff said the compensation adjustments in the recommended budget will be allocated to departments as part of the final adoption process and that additional administrative work will be required to implement recommended classification changes.
Speakers quoted above spoke during the special presentation portion of the March 17 meeting.
