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Davis County budget committee weighs shifting pay strategy as benchmarks and benefit costs rise
Summary
County staff told the Budget Committee that switching more pay increases to a COLA and reducing merit could shrink the number of below‑market benchmark adjustments (29 benchmarks, ~367 employees) but would increase short‑term costs; commissioners debated trade‑offs, pension pickup limits and recruitment risks.
Davis County officials examined competing approaches to next year’s compensation plan on Tuesday, focusing on how to balance cost‑of‑living adjustments (COLA), market benchmark corrections and merit pay.
Staff presented analysis showing 29 benchmark job classifications currently fall below market, affecting about 367 employees, and said applying COLA before benchmark adjustments would reduce the number of benchmarks requiring market corrections. "From 29 benchmarks it drops to 18 and affects now only 122 employees," staff summarized in their slide deck.
Why it matters: compensation accounts for roughly two‑thirds of the county’s general‑fund expenditures, so committee direction on COLA versus targeted market adjustments will shape the 2026 budget and how departments prioritize services. Commissioners repeatedly framed the decision as an order‑of‑operations question: whether to apply a broad COLA first or target scarce, high‑turnover roles with benchmark increases.
Staff and commissioners debated the fiscal trade‑offs. One simulation in the presentation showed a 3% COLA would cost approximately $3,000,000 overall, while smaller COLAs (1% or 2%) materially reduced the number of positions needing benchmark adjustments. "If we are already going to do a 1% COLA, then do the 1% COLA first before the benchmark," a commissioner said during the exchange.
HR described how the county treats employees whose base pay sits above a new grade midpoint after restructuring: "We will allow a lump sum that does not add to their base pay," said Chris Bone (Human Resources). The county confirmed this 'redlining' practice affects only a few employees and that lump sums are moderated until ranges catch up.
Commissioners flagged recruitment risks in high‑turnover categories. "If you ignored an important benchmark, you could have the sheriff back at your door saying, I can't recruit deputies," staff warned, noting public‑safety roles are particularly sensitive to market gaps.
The committee also discussed statutory and administrative constraints: staff reminded members of Utah notification requirements for elected‑official pay and noted legal limits on employer 'pickup' of retirement contributions for some employee tiers.
What’s next: Staff will circulate slide decks and refined cost estimates; the committee scheduled a wrap‑up meeting on Oct. 10 to provide final direction before budget adoption. The committee did not take a formal vote during this session.
Ending: Commissioners asked staff to model several scenarios (varying COLA, merit and benchmark orders) so the committee can decide which combination best balances competitiveness, equity and fiscal sustainability before the next round of public hearings.
