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Smithfield council approves pay‑plan adjustment and merit increases; police hiring bonus discontinued for new hires
Summary
Council approved a 2% salary‑schedule adjustment, authorization for up to 2% merit‑based raises (average merit across evaluated employees 1.68%), and elimination of a $5,000 police hiring bonus for future hires; staff provided fund‑level cost breakdowns and council debated budgetary and policy implications.
The Town of Smithfield council approved a staff recommendation to implement a 2% adjustment to the town's salary schedule, authorize up to 2% merit‑based increases based on annual evaluations, and discontinue the $5,000 police hiring bonus for future hires.
Shannon (staff) presented the proposal and outlined the budget impact across funds. She said the average increase across the 171 full‑time employees evaluated was 1.68% and that the annual cost to the general fund would be $127,112.71 (with $68,852.72 remaining for the current fiscal year because 13 pay periods remain). She reported the water/sewer enterprise fund annual impact at $24,311.73 (remaining $13,168.85 for the fiscal year) and the electric fund impact at $18,591.74 (remaining $10,070.53). Shannon said total annual cost across all three funds is $170,016.81 with $92,092.10 remaining for the fiscal year; she emphasized that some utility positions are paid from enterprise funds and not general fund tax dollars.
"These actions are intended to support market competitiveness, recognize employee performance, and maintain fiscal responsibility," Shannon said in the presentation.
Council members asked for clarifications about the difference between the July 3% salary adjustment (described by staff as a salary adjustment/cost‑of‑living action), the current request to raise the salary schedule by 2% (affecting starting/minimum pay rates), and the merit increases tied to evaluations. Council members also questioned peer comparisons to towns such as Garner, Selma, Clayton and whether the town was using its salary study consistently. Staff said the salary study (completed March 2024) and the July salary adjustment were separate steps the council had previously authorized and that the current action implements the schedule adjustment and merit authorization following direction given during the budget process.
The council moved and seconded the motion to approve the staff recommendations. The motion passed by voice vote. Staff clarified the hiring‑bonus elimination applies to new hires only; conditional offers already extended will be honored and any pending bonus payments previously agreed remain in force.
(Provance: topic introduced SEG 644; presentation and discussion SEG 650–SEG 1696; motion and vote SEG 1447–SEG 1696.)
