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New Prague adopts 15-step compensation plan, council votes 3-0
Summary
After debate over costs and retention, the council approved the final compensation study and its implementation plan, moving the city to a 15-step pay matrix with initial adjustments beginning Jan. 1 and phased step increases thereafter.
The New Prague City Council voted unanimously to approve the final 2025 compensation study and its recommended implementation, authorizing an updated pay matrix that expands the step structure to 15 steps.
A public commenter had urged the council to focus on low-end pay increases rather than broad expansion of the top end, arguing that data in the report showed smaller market gaps at the top. The commenter said the proposed 46% spread risks inflating pay at the top end relative to peer cities and recommended modeling after a nearby city's more restrained 9-step structure.
City staff and consultants answered questions from council members about cost differences between options. Staff said the 15-step plan would add roughly $7,800 to the general fund in the first year compared with an 11-step matrix and roughly $21,000 more in 2027 under a 3% COLA assumption; full citywide costs including enterprise funds would be larger. Supporters said the expanded step structure supports retention for long-tenured and specialized employees and keeps the city competitive in labor markets.
One council member noted that enterprise funds and certain job classes require higher maximums to retain experienced staff. After discussion the council approved staff's recommended implementation motion (motion and second noted in the record); the motion passed 3-0.
Staff will proceed with the implementation timeline discussed in the study, including a January 1 effective date for the initial adjustment and step placement guidance provided by the consultant.
