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Town manager proposes comprehensive pay study, suggests phased 3.5% merit placeholder
Summary
Town Manager Mikaela Garcia outlined a comprehensive compensation and job classification study to address pay compression and turnover, recommending a phased, data‑driven approach and a placeholder 3.5% merit pool while the study completes in 3–5 months.
Town Manager Mikaela Garcia told council she initiated a comprehensive compensation study that will include job evaluation based on compensable factors, peer selection and salary benchmarking using sources such as TML, the Bureau of Labor Statistics and industry data. She said the study will produce a pay plan, grade assignments, and a phased approach to remedy underpaid positions rather than abrupt across‑the‑board changes.
Garcia said she will include a placeholder 3.5% merit pool in the proposed budget and a 4% market pool as tentative placeholders, explaining "we're using the precision of a scalpel instead of a sledgehammer" to target the most egregious pay gaps. She told council the consultant‑led study will take an estimated 3–5 months and that any larger changes will be phased in over multiple years to align with tax‑rate impacts.
Council members asked whether the proposal replaces traditional cost‑of‑living adjustments. Garcia said many local governments are moving to performance‑based adjustments and the first year may include a merit‑ish placeholder until performance expectations and job classifications are set.
