Forest Lake City Council adopted the 2026 classification and compensation plan developed from a consultant study and approved the staff‑recommended implementation strategy, staff said.

Mark, a city staff member, presented results from McGrath & Associates and explained staff’s recommendation to keep employees at their current step while placing jobs into the new grade matrix. Under the proposed approach, grades were adjusted and the city’s pay matrix moves from a five‑step to a six‑step system in the recommended schedule; employees would retain their existing step number so their relative position in a pay grade would not decline.

Staff said the alternative — moving employees to a lower step to save operating budget in the short term — would produce a one‑year savings estimated at about $200,000–$300,000 but would increase required budgetary adjustments in subsequent years. Mark said staff recommended the single‑year implementation to bring pay to market now, help employee retention and position the city better for upcoming union negotiations. The council moved, seconded and approved adoption of the 2026 wage scale and the guiding principles for implementation by voice vote.

Details to be addressed during implementation include specific step placements for individual employees, impacts to union negotiations and the degree to which future budgets will be adjusted to maintain market alignment.