Lindon staff propose market adjustments and 2.5% COLA; council debates merit and pay strategy

City staff proposed a set of pay-range market adjustments for selected positions and recommended a 2.5% cost-of-living adjustment for FY2026, prompting council discussion about merit, equity and budgetary trade-offs.

Human-resources and finance staff presented results from a market-comparison study that compares Lindon positions to peer cities. The staff recommendation would shift position pay ranges to improve competitiveness; staff estimated the total fiscal impact of the proposed range adjustments at roughly $220,670 for the next fiscal year (including benefits). The presentation also recommended a 2.5% COLA for all employees and a merit process to be applied later in the fiscal year (historically in January) tied to step increases in adopted pay ranges.

Council members raised questions about rewarding performance. Several members said they want to retain top performers and acknowledged turnover pressures in specialized roles (public works, police). Others emphasized the public optics of across-the-board increases and asked staff to model merit allocations and the long-term effect on personnel costs. Staff explained that Lindon has added or reclassified positions in recent years to meet service needs and that personnel costs have grown as a share of operating revenue, reflecting both wage pressure and new positions.

Why it matters: Personnel costs are the largest operating expense for most cities; adjustments affect operating budgets, service levels, and recruitment/retention.

What’s next: Staff will incorporate the market adjustments and recommended COLA into draft budget models and provide projections for merit pools and alternative approaches (targeted market moves vs. across-the-board increases) for council consideration during budget deliberations.

Evidence: Market study presentation and staff commentary during Lindon City budget kickoff work session.