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Council approves retroactive step increases alongside existing COLA after debate over policy and part‑time staff
Summary
The council voted Jan. 13 to add step increases for full‑time employees in conjunction with an already approved cost‑of‑living adjustment (COLA), approving an additional expenditure the administrator described in discussion as roughly an added line item (figures discussed ranged between a 41% budgetary impact and a $41,000 estimate). A work session was scheduled to refine implementation and part‑time treatment.
The City Council voted Jan. 13 to approve step increases for full‑time city employees in addition to a previously approved 3% cost‑of‑living adjustment, after extended discussion over whether step increases should be guaranteed or tied to performance. The council’s action followed discussion led by City Administrator Scott Liner about how the two measures would be implemented and paid.
Liner told the council the budget included a 3% COLA but personnel had proposed adding step increases tied to performance. He described two possible approaches and said, “If we were going to add the step increase to the COLA increase, it's gonna roughly be about additional 41%,” and cautioned that precise costs depend on how the policy is written and whether steps are applied retroactively. He also said any approved increases would be retroactive to Jan. 1 if the council authorized them now.
Council members pressed on mechanics and fairness. One council member argued the step increase should be performance‑driven, not automatic, saying steps “should be based on performance” rather than guaranteed each year. Several members raised concerns that part‑time staff — some of whom have worked locally for many years — would be left out under the current personnel policy and urged that future policy drafts consider longevity for part‑timers.
After debate, a council member moved to provide the step increases in conjunction with the COLA; the motion was seconded and the chair announced the motion passed. During the motion discussion, an estimate of the immediate additional cost was described as an “additional $41,000” in the staff presentation materials; the council directed staff to finalize calculations and performance‑evaluation language and scheduled a work session to draft the new policy and address part‑time employee treatment.
Liner also reported other personnel‑related items: paperwork for Minnesota family leave is complete and performance evaluations have been collected; he said evaluations will be distributed and discussed with employees once pay changes are finalized.
What the vote means: the COLA already approved by the council will appear in pay, and the step increases approved Jan. 13 will be processed so they are retroactive to Jan. 1, subject to final payroll calculations and the policy language the council develops in the scheduled work session.
Votes at a glance: the council approved the motion to provide step increases for staff during the Jan. 13 meeting; recorded speakers and motions are reflected in the meeting record and staff will return with final numbers and policy language.
The council scheduled a work session to refine the step‑increase policy, discuss anniversary vs. calendar application, and consider options for part‑time staff; the administration will return with final payroll numbers and proposed personnel‑policy language for council review.
