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<br /> <br />In February 2005, the Personnel Committee met ro review the pay equity issues. The <br />Committee is recommending to the City counCilfat the pay plan increase 1.7% and that a <br />pay increase of 1.7% be given to all employees, e cept the building inspectors, effective at <br />the beginning of the first full pay period in August. (This timeframe is one year from when <br />the wage increase was provided in 2004.) i <br /> <br />I support and agree that increasing the pay plan ajJ.d providing a pay increase is the most fair <br />and logical way to address our pay equity compliapce issues. I support this solution because I <br />believe that we can afford this increase and that i~ is appropriate when comparing Elk River <br />to other communities. However, I believe the increase should be 1.98% and not 1.7%. From <br />my point of view, this addition of .28% should eli!minate any concerns regarding fairness and <br />being in compliance with the comparable worth l~w. <br /> <br />Another option for the city to be in compliance ~ith the pay equity law is one which the City <br />Council has rejected in the past. Nonetheless, it isi an option, and this is to hold back the <br />housing/building inspectors and the lead and pluJ!nbing inspectors (by approximately 1.98% <br />and 1.704%, respectively) when the COLA is provided on January 1, 2006. <br /> <br />The cost to the city for the 1.98% for all city emp~oyees for five months is approximately <br />$35,000. This compares to approximately $29,500 if the increase was based on 1.7% for five <br />months. Funding for this expense in 2005 will cOJine from the allocation of the 2004 General <br />Fund Balance. City Council took action on this a4ocation on April 4, 2005 and reserved <br />approximately $114,500 for pay adjustments and q:apital equipment. This wage increase will <br />then have to be factored into the 2006 budget. This increase will slightly reduce our <br />flexibility in 2006 for adding staff and adding eq~pment into the General Fund budget. <br /> <br />Recommendation <br />It is recommended that the City Council adjust thb pay plan by 1.98% and provide wage <br />increases of 1.98% (or have employees go to the ~op of the pay range, whichever is less) <br />effective at the beginning of the first full pay peri~d in August. The housing/building <br />inspectors are excluded from the wage increase. <br /> <br />s: \ Council\pat\2005 \PayAdjust.doc <br />