Fair Oaks Ranch City Council adopted a resolution on July 3 to set the city's compensation‑market target at the 50th percentile (market median) of a defined set of peer organizations. The direction will guide final position alignment and the development of a new pay plan to be considered during the FY2025–26 budget process.
Human Resources Director Joanna Merrill and Evergreen Solutions consultant Carl Fieg presented benchmarking methodology, peer selection criteria (residents, employee counts, operating budgets, taxation and income metrics), and the survey results. The consultant reported that compared with the selected peers the city's current structure was, on average, about 2.5% below the 50th‑percentile midpoint; compared with the 66th percentile the city was further behind. Staff provided estimated implementation cost ranges based on a suite of implementation methodologies: moving to a 50th‑percentile target produced preliminary cost scenarios in a broad range (staff presented estimated annual payroll impacts from roughly $130,000 up to about $770,000 depending on the method); a 66th‑percentile target produced higher estimate ranges.
Council acted to adopt the 50th‑percentile market position by resolution; staff will develop detailed implementation options (internal equity adjustments, phased approaches and costing) and return with a recommended pay plan and costed scenarios in time for budget adoption. The motion to adopt the 50th percentile was moved by Jonathan, seconded by Dale, and approved by voice vote.