Albany council adopts revised city manager pay range, phases in raises and converts severance to lump sum

The Albany City Council on July 6 voted to adopt staff and consultant recommendations to establish a formal salary range for the city manager position, set the midpoint at $250,000 and phase the current manager’s placement up to market over the next 18 months.

The council’s action implements a consultant (Raftelis) finding that Albany’s city manager pay is roughly 15% below the median of five Oregon comparators and directs staff to update the city manager contract to reflect new COLA language, severance terms and evaluation timing. HR recommended placing the current manager, Peter, at a phased set of steps rather than one large increase.

“Our recommendation is that the city establish a salary range for the city manager position, consistent with the recruitment trends, with the midpoint at the median,” the consultant said during the presentation of the compensation study. HR Director Holly Roten told the council staff concurs that the city manager’s pay is about 15% below the comparator median and that the midpoint recommendation aligns with the city’s proposed salary schedule.

Council discussion focused on timing and optics. Several councilors supported a phased approach rather than an immediate, single-step increase. One councilor said the proposed jump “does make me a little uncomfortable” given the gap between executive pay and typical local wages; another argued the manager supervises a large operation and the role justifies competitive pay. After debate, the council amended the staff recommendation to place the manager at step 4 as of July 1, 2026; step 5 on Jan. 1, 2027; step 6 on July 1, 2027; and step 7 on Jan. 1, 2028, and approved the motion as amended.

The council also approved converting severance payouts to a lump-sum payment — a practice HR said is common among comparators — and adding 60 days of COBRA premium coverage at the city’s standard contribution rate. Council members raised tax implications of lump-sum severance, and staff noted the agreement can allow the city manager to elect the payout form at the time separation occurs.

On performance reviews, the council set the manager’s evaluation frequency in his contract to annual but left discretion for the council to hire third-party consultants as needed; some members suggested alternating consultant-facilitated reviews and internal reviews every other year.

Finally, the council authorized HR and the city attorney to prepare a revised agreement incorporating the adopted salary range, placement schedule, severance and COBRA language, updated COLA provisions and other contract cleanup items for the mayor’s signature.

Staff provided figures during the discussion: the consultant recommended a $250,000 midpoint; HR said the manager’s base pay, after applying the adopted 2.4% COLA, was about $218,000 and that a 10% deferred compensation benefit brings total compensation closer to $237,000 (figures described by staff as approximate). The contract’s existing severance provision was reported as 12 months, which staff said is within market range. The council and staff emphasized that specific contract language and effective dates will be finalized in the revised agreement prepared by HR and the city attorney.

The council’s actions are administrative updates to the city manager’s compensation and contract; no changes to council procedures or broader compensation schedules for other bargaining groups were adopted at this meeting.

The HR director and city attorney were authorized to finalize the contract revisions and prepare the document for the mayor’s signature.