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Hot Springs staff proposes pay-table changes to deliver 3% raises, board questions short‑term inequities

December 31, 2024 | Hot Springs City, Garland County, Arkansas


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Hot Springs staff proposes pay-table changes to deliver 3% raises, board questions short‑term inequities
Finance Director Karen Scott presented a proposal to amend city pay tables so that nonuniform employees receive a total 3% increase (a 1.6% step plus a 1.4% cost‑of‑living adjustment), effective on the first paycheck in 2025. Scott said staff also recommends adjusting the public‑safety (police and fire) pay tables so each active step in those grades would reflect a total 3% increase.

"The 2025 approved budget included raises for all employees," Scott said. She explained that police and fire historically have different step schedules (police step annually until five years, fire step every other year or every seven years for rank progression), which created inconsistencies when the nonuniformed employees’ plan changed.

Several board members asked whether employees who have an upcoming scheduled step increase between now and when the uniformed plan is aligned would effectively receive an additional pay bump. Director Trustee summarized the concern: "So we make this adjustment — everyone gets a 3% raise January 1 — but those that step between now and the time we try to fix this, they're gonna get another step increase?" Staff replied that employees who step later in the year would move to a new step rate but would not also receive an additional COLA, and that staff expects the plan to be fully harmonized by the end of 2025.

Director Garcia said she viewed the measure as appropriate cleanup of previously adopted budget actions and that the board had anticipated employees would receive roughly 3% in the budget vote. Staff said no additional budget appropriation is proposed at this time and that salary savings should absorb the adjustments in most departments; staff also committed to provide details in the upcoming packet and to identify who will move steps during the year so the budget office can model impacts.

The pay-table amendment (Resolution R-2506) was introduced at the agenda meeting; no final board vote occurred on Dec. 31. Staff intends to return the item for formal consideration at the Jan. 7 meeting.

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