Council reviews $4.2M compensation package proposal: 3% general wage increase plus bonuses and targeted range adjustments

Human Resources Director Nicole Clark presented a multi-part compensation proposal to the council that combines a competitive general wage increase with targeted market and compression adjustments and a one-time performance-bonus pot.

Clark explained the components of a proposed $4.2 million package: a 3% general wage increase (staff estimate ~$3.1 million), compression adjustments (~$636,480), range adjustments across unified and public-safety pay scales (~$212,453), minimum-wage implementation costs (~$121,678), and a $300,000 one-time performance-bonus pool. "We have $4,200,000 and $4,200,000 will not cover and address all of these items listed here," Clark said, asking council for direction on priorities.

Clark also gave staff calculations for a 'living wage' in the city, noting "the annual living wage for a full time employee is $28,246 or if you equate that to an hourly rate, it's $13.58." Council members debated whether to prioritize a larger general wage increase (some argued for moving toward the school's 5% proposal) or to use funds instead to add staffing to relieve workload pressures; several members also supported increasing the one-time bonus pot and conducting process reengineering to reduce staffing stress.

Staff recommended phasing the state's minimum-wage increases (already partially implemented) and proposed specific range moves for public safety and benchmark positions so the city remains competitive in recruitment. Council tasked staff with returning with a manager's recommended budget that reflects council direction.