Spring Hill board directs staff to pursue a 60th-percentile compensation step plan; staff outlines costs

City staff presented a proposed employee compensation framework at the April 6 work session, and the board gave direction to pursue a conservative, implementable approach ahead of the May budget process.

Mr. Napier outlined a 13-step plan with 3% increments (step-to-step) and presented three market benchmarks (60th, 65th, 70th percentiles). Staff estimated an enterprise-wide recurring cost of about $930,000 for the 60th‑percentile scenario, with a one-time true-up payment of $315,000 to ensure every employee receives at least a 3% increase during implementation. Staff noted many of the positions that see the largest initial impact are in mid-range grades (permit techs, engineering techs, accounting clerks, streets operators and inspectors).

Board members debated affordability and timing. Several aldermen and the mayor cited constraints from the current sewer moratorium and the potential impact on fund balances; some favored a more aggressive 65th or 70th percentile if budget capacity allowed. After discussion the board generally directed staff to plan toward a 60th‑percentile implementation for FY27 while preparing phased options and cost detail in time for the May 5 budget review.

Mr. Napier and staff committed to provide the heat-map breakdown showing which pay grades receive the largest adjustments, the expected recurring annual maintenance cost under the chosen percentile, and a more detailed breakdown of the $315,000 one-time true-up across pay grades. Any final adoption will require the board to appropriate funds during the FY27 budget process.