Council signals support for nonunion pay-plan with 4% COLA; staff to update policy for Dec. 8 packet

Council reviewed proposals to rework the city's nonunion pay plan and discussed three options that vary by cost-of-living adjustment (COLA) paired with a 13-grade by 15-step pay grid. Paula (HR staff) described the job-evaluation process used to slot positions into grades, explained the three-piece design (pay level, pay structure, pay method) and reminded council of pay-equity reporting requirements.

Paula said pay equity reporting is required periodically and warned that failing to comply could reduce state aid or result in fines. She described typical market practice on steps and noted the city uses a third-party job-evaluation consultant rather than the state's job-match system.

Councilors debated employee morale, the effect of different COLA choices on individual incumbents (some employees could make slightly less under lower COLAs), and the budget impact. Staff estimated total implementation costs (salary portion and levy impact) for the options; the group discussed spreading costs across enterprise and general funds.

Mayor Whelan and several councilors signaled support for option 3 (4% COLA), and staff said the nonunion employee pay-plan policy (adopted 06/06/2022) will be updated with the new pay table and step increases for presentation in the Dec. 8 packet. The council agreed staff may place the update on the consent agenda.

Council also asked personnel committee staff to continue market monitoring and to revisit COLA choices in 2026 when additional data are available.

No final ordinance was adopted at the meeting; staff will update the policy and present it for action in December.