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1993 WAGES AND BENEFITS FOR EXEMPT EMPLOYEES By: Ryan Schroeder, City Administrator CASE #1 Background: During the Special City Council meeting held on January 6, 1993 there were discussions regarding the 1993 wages and benefits for Exempt employees. Concerns were raised during the meeting regarding the correct market comparison for Auspos, Gomez, Gustafson, and Jankowski. Since that meeting I have reviewed the job number of each of the Exempt personnel. A meeting was held with the Exempt personnel on Monday, February 8, 1992 to discuss my new recommendation. A meeting with the Negotiating Committee was held on February 9, 1993 at which time it was noted that there may not have been sufficient time for proper review and comment by all of the exempt personnel and that the Negotiating Committee would discuss in another two weeks. At the last meeting it was suggested raising the minimum to 3% (added to the base) as opposed to 2.25% (lump sum). This table is included with a 4.24% payroll cost. We also discussed wage compression. The last table speaks to this issue. The top of the table shows projected wage disparity between supervisor/subordinate in total and by class. For instance between Sandra and me there is a total of 10.85% wage differential. Because there is also a three class differential in the pay plan, this equals 3.62% for each class level. The bottom half of the table compares projected 1993 wages to market midpoints and class midpoints for selected personnel. You will note that on average the City will pay in 1993 at about market midpoint for these positions (taken as a whole) but the pay ranges from 84% to 130% of the 1992 Stanton market. Similarly, the City pays "on average" 109% of class midpoint for this sample of positions ranging from 91% to 146%. I have noted in the past that due to this relationship the City should increase the pay within its classes {but not this year). Further, that while persons with long tenures in their position are not recommended for large percentage increases, typically pay relationships for these positions appear to be more positive than others which are scheduled for greater percentage increases. All exempt personnel have received a copy of the Stanton job title and number that each person's market range is compared to with a description of the duties, qualifications and salary information for each position. Attached is a copy of the memo that was distributed on February 17, 1993 stating that my proposal for the Exempt personnel is the same as presented at the February 9, 1993 meeting and to state times available to discuss concerns, questions, etc. My recommendation would be an increase in payroll of 3.88%, with a minimum increase of 2.25% - with the difference in lump sum, and an increase in the monthly contribution for health and life insurance of $15.00 from $250 to $265 monthly.