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Assembly backs Gallagher pay study; administration to implement revised salary schedule
Summary
After a Gallagher Group presentation showing borough base pay roughly 11–12% below market median, the assembly moved a nonbinding motion of support for a revised 11-band, 15-step salary structure and directed staff to return the final report for budget inclusion. Staff estimates a roughly 9% one-time personnel cost impact for implementation.
The Denali Borough Assembly signaled support for a major revision to employee pay structures after a presentation by a Gallagher Group consultant on the borough's compensation study.
"The borough is showing to be 11% below what that market 50th is," Gallagher representative Charmaine Kohler said, summarizing the market comparison and the firm's recommendation to adopt an 11 pay-band structure with 15 placement steps per band. Kohler described the study's methodology—using Alaska Municipal League data, CompData and ERI for geo-adjustments and aging data to 07/01/2026—and said the proposal is intended to improve internal equity and make pay progression more gradual and meaningful.
Assembly members pressed the consultant and staff on several points: whether total compensation (benefits) was included (Kohler said the study measured base pay only), how the borough's 32-hour workweek was annualized to a 40-hour comparison, and the number of employees affected. Kohler said six employees would need adjustment to reach new minimums and seven would be affected by step-placement changes, and she recommended annual review of the structure.
Mayor Nolan and other members discussed fiscal timing and implementation. Staff said the administration plans to implement the changes at once starting in late October if the assembly supports the approach, and estimated a one-time budgetary impact of roughly a 9% increase in personnel costs tied to the reclassification and step placement. After discussion, the assembly made and seconded a motion "to support the revised salary schedule as presented by the Gallagher Group," which passed by voice vote with no recorded roll call opposition. The final Gallagher report will be provided to the assembly for review and included in next year's budget book if adopted.
