Committee recommends village board approve merit pay that will put some employees above current pay bands

The committee considered a request from the administrator to authorize merit-pay increases that would place 19 employees—15 of them in police command roles—above their current pay-range maxima. The administrator said the increases reflect compression issues created by negotiated union increases and high starting salaries for several management hires.

Trustees questioned whether the increase should be paid as a temporary stipend until pay ranges are formally adjusted. The administrator and some trustees opposed a stipend approach, arguing it harms morale and creates uncertainty; staff proposed instead to approve the merit adjustments now (to be implemented as of pay period 1) and then update pay ranges in the coming quarter with retroactive adjustments as necessary. The administrator said the $229,000 merit-pay pool in the approved budget would cover the increases overall and estimated $40,000–$50,000 of the total would be the portion that goes beyond pay-range caps.

After discussion, the committee voted 3–1 to forward a recommendation to the village board to allow the merit-pay increases that may put some employees above the current pay bands. The committee noted it expects staff to return with pay-range adjustments and longer-term planning to reduce the frequency of ad-hoc over-range approvals.

What happens next: The committee recommendation will be considered by the full village board; staff will proceed with pay-range updates and follow-up reporting to the committee.