Agenda - Council - 03/08/1994 - Laserfiche WebLink

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I CASE # 1994 COMPENSATION PLAN BY: Ryan Schroeder, City Administrator I I I I I I I I I Backgroun~t: Council will [recall that at the last Personnel Committee meeting I expressed concern about wage maxim,~as for senior management. My rationale was that if Council did not intend to ever provide~or wages at wage maximums as presented the compensation plan should not state that ye[u do. The concern is thc expectation of the public and employees with maximums ~yond attainment. The alternate position expressed was discomfort with a lack of visible makimums in that the public should be informed of wages and wage potential. Council will :,'e~all that pursuant to the 1985 Pay Equity Act the City has a responsibility to provide for "1 ~asonable pay relationships". This has been translated by local governments to mean eom 1992, 1993 surveyed so~ 1991 when ~ensation plans based upon a mathematical formula. It appears that Ramsey's ad proposed 1994 compensation plan falls within accepted standards. We te area communities to gauge level of changes in compensation plans since ~msey's most recent pay system was implemented. We found the following: Cityl Minimum Step as % Difference Annual Wage of r a % of Maximum Between Classes Class Maximum Elk River ! 81.13% 6.90% $64,213' Savage 71.25% 7.58% $64,452* Mounds View 80.00% 13.29% $67,462 New Hope ~ 77.86% 6.95% $85,696* Hopkins ,~ 74.03% 8.33% $85,764 Robbin sclale 76.12% 10.02% $86,174 Plymouth 72.73% 5.84% $98,413 Anoka ~ 49.05% 8.93% $105,019 Bloomington, 83.05 % 14.70% NA Average 73.91% 9.17% $82,149 ~-- Range 49.05 - 83.05% 5.84 - 14.70% 1994 Ramsey. 69.00% 7.53% $80,453 I ! I I I I I * 1993 Compensation Plans From the aboye you can see that 78% of the sampled cities use minimums which are 71% to 81% of makimums. Ramsey is at 69%, hence we inherently hire positions on a basis somewhat les~ than the sampled cities. You might recall in 1989, 1990, and 1991 our minimums w~e 56%. We improved that to 72% in the 1992 and 1993 contracts. This has dropped in tM 1994 - 1995 plan to 69%. The sample also shows 67% of cities using 7% to 10% pay di~_,' parity between classes. Ramsey is at 7.53% which is close to the median. It is expecte~ that the mean maximum class wage in 1994 for these cities will be at approximately, $83,000. (It should be noted that four of the sample cities sent 1993 compensation~lans.) The Ramsey 1994 - 1995 proposal is for $80,453. Committee Action: Motion to recOmmend/not recommend to City coUncil that the 1994 Compensation Plan be approved. Review Che City Adminisa Personnel Coo PC:3/8/94 :klist: Also distributed to: ator Finance Officer rdinator Police Chief City Engineer I