Council adopts 2026 wage scale after classification and compensation study

Forest Lake City Council voted to adopt a new 2026 wage scale and position grading following a classification and compensation study by McGrath & Associates.

City leadership reviewed implementation options and recommended keeping each employee at their existing step on the newly adopted grade rather than moving employees to lower steps to save one year of budget. Staff said the council's proposed 2026 budget is structured to fund full implementation so employees reach market rates now rather than phasing increases over multiple years. Staff noted advantages for recruitment and retention, particularly for the police department, and said the phased option would defer costs this year but increase budget pressure next year by an estimated $200,000–$300,000.

Council discussed technical details — grades and steps, how employees move along the matrix, and the perception employees might have if a phased approach reduced their current step position. After discussion, a council member moved and the council adopted the proposed 2026 wage scale, the position grading and the guiding principles for implementation as the nonunion wage schedule and the basis for union negotiations.