Chaim Hertz, the city's HR director, presented market and inflation data and asked the council for guidance on the city manager's wages. Hertz said the city's comparison group showed the city manager's salary ranks seventh of seven similar agencies and is about 10.5% below the market median.

Hertz provided an inflation figure staff used in analysis (about 2.93%) and estimated that a full inflationary adjustment for the prior year would equate to roughly 75'80 hours (about two weeks) of pay. Councilors discussed how to reconcile last year's decision not to award a raise and whether to provide time-off credit or an adjustment to pay going forward.

Council consensus at the work session was to credit two weeks into the city manager's PTO bank to account for last year's foregone adjustment and to ask HR to return on Monday with a recommendation for future salary adjustment options. Several councilors supported a phased approach to reach market alignment while balancing the city's current budget constraints; one councilor suggested beginning with a 5% increase as a practical step.

During discussion councilors emphasized both fiscal prudence and the need to remain competitive to retain senior staff. HR confirmed the city policy allows employees to maintain up to two years of annual accrual balance in their PTO bank and staff will prepare recommendations for the upcoming regular meeting.

Next steps: HR will return recommendations at the next meeting (Monday) reflecting the council's guidance (PTO credit and options for phased pay alignment).