City Council Agenda Packet 12-07-1987AGENDA
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, December 7, 1987 - 6:30 p.m.
Mayor: Arve A. Grimsmo
Council Members: Fran Fair, Bill Fair, Dan Blonigen, Warren Smith
1. Call to Order.
2. Consideration of Establishing a Pool for 1988 Salaries and Wages for
Non -Onion Personnel.
Adjournment.
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Special Council Agenda - 12/7/87
Consideration of Establishing a Pool for 1988 Salaries and Wages for
Non -Union Personnel. (R.W.)
A. REFERENCE AND BACKGROUND:
For the past four years, the Council has met in special session to create
a pool of money based on a percentage of the current year's total
payroll. That pool of money has then been available for the
Administrator's use in negotiating and setting salary proposals for the
upcoming year with the staff. Previously, the Administrator's salary has
been excluded from the initial pool and considered separately. It has
been my understanding that the Council has used predictions and/or
forecast for the upcoming year's inflation as a guideline in establishing
a cost of living adjustment. In addition, an additional percentage
usually has been allowed as part of the pool that could be used as
additional adjustments for performance or merit increases. Straight
salary adjustments that do no more than match the inflation expected do
nothing for an employee in improving his buying power and living
conditions but merely keep him equal to where he was at the beginning of
the year.
I believe at this point, the City of Monticello is in compliance with the
comparable worth plan as recently adopted, and no major adjustments are
anticipated. In 1987, the Economic Development Director's position was
adjusted slightly above other employees to establish the pay for this
position within the comparable worth guidelines. At this point, no other
City employee falls outside of the comparable worth guidelines, and
adjustments for 1988 would not need to vary greatly from employee to
employee.
In 1986, a coat of living adjustment of 4 percent was established by the
Council and an additional 2 percent merit pool was also included. The
total amount equaled approximately $21,150 with actually $17,463 in
raises distributed. This amounted to an excess of approximately $3,700
that was not used by the previous Administrator. In 1987, the Council
granted a 4 percent cost of living adju stmpnt pool and, I believe, an
additional merit pool up to 1 percent for a total of $15,020. Of this
amount, $13,833 was issued in pay raises without an increase being
granted to the Senior Citt2en's Director. The actual pay increases for
the staff employees ranged from a low of alightly over 4 percent to
approximately 5 percent in 1987, with all employees receiving at least
the 4 percent cost of living adjustment. As I indicated earlier, the
only person who was above this amount was 011ie, who received an
8.3 percent adjustment to fall within the guidelines of the comparable
worth plan.
The Kiplinger Letter published in Washington has estimated recently that
the 1987 CPI should run around 5 percent, and for 1988, an additional
5 percent increase is expected. The 1988 salary adjustments for private
Special Council Agenda - 12/7/87
sector, non-union, white collar, and clerical workers is expected to
average approximately 5 percent according to their publication. Assuming
the Council continues the practice of using next year's forecasted
inflation factor as a guideline in establishing the amount of adjustment
that should be granted, it appears that a 5 percent figure is the best
estimate at this time. If the Kiplinger Letter is at all accurate, their
estimated 1987 inflation of 5 percent will be close to what all employees
received last year in raises of 4 1/2 to 5 percent, including merit and
performance increases. As a result, although minor adjustments were
granted to most of the employees above 4 percent CPI last year, in
reality, they have not actually received a merit or performance increase,
as the total amount received will probably just equal inflation.
The total payroll for non-union personnel in 1987, excluding the
Administrator's salary, was $335,701. I have enclosed a chart which
shows what the pool amount would be based on the existing payroll ranging
from 3 percent to 7 percent. The 1988 budget for all salary
classifications included a 6 to 6 1/2 percent of total payroll built into
the budget. In an unrelated matter at this time, the budget also
included sufficient funds for an additional staff member in the Planning
and Zoning Department and also as a replacement for my previous position.
Assuming that the Council wishes to continue with the practice of
establishing a pool of money to be allocated by the Administrator, the
salary pool must reflect what the Council feels is the limit for salary
increases next year. 7be salary pool established along with any merit or
performance increases, if allowed, should reflect the maximum amount the
Council is willing to have awarded in 1988 by myself. I would hope that
once a pool is established and if it has been distributed by myself to
the individual employees that the Council ratifies the salary increases.
In essence, if the Council establishes a $20,000 pool but does not expect
me to use all of it, then it may be better to revert to a different
system. I have also enclosed a listing of all the employees and their
base salaries for the past few years as a reference. Additionally, for
informational purposes, I have included a summary of the latest salary
adjustments granted by the school district for the years 1986-1987 and
1987-1988 for various classes of employees.
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TOTAL 1987 STAFF PAYROLL (Non-union)
(excluding Administrator) 6 Part-time Liquor - $335,701
39 48 4 1/29 58 5 1/28 69
$10,071.03 $13,428.04 $15,106.55 $16,785.05 $18,463.56 $20,142.06
6 1/29 79
$21,820.56 $23,499.07
ADMINISTRATOR'S SALARY - $43,000
39 49 4 1/29 5% 5 1/29 69
S 1,290.00 S 1,720.00 S 1,935.00 $ 2,150.00 $ 2,365.00 5 2,580.00
6 1/21 19
S 2,795.00 S 3,010.00
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REFERENCE EXAMPLES
LATEST SCHOOL DISTRICT SALARY ADJUSTMENTS
Administration - All administration received increases of $2,000 or $2,400
annually depending on education or experience plus additional $900/year for
those with 13 years or more of service.
Examples:
Annual Increase 86-87 87-88
Superintendent $3,300 v 3T%— 3T
Athletic Director $2,900 a 7.7% 7.16
Business Manager $2,900 a 7.88 7.28
Teachers Aides 8.19 5.638
Admin. Secretary $1,768 9.88 8.99
Other Secretarial Staff $1,352 7.99 7.38
SALARY HISTORY
*No 1987 salary adjustment made at this time.
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1985
Base
Name
Title
Salary
1986
1987
Tom Eidem
C. A.
$40,052
$42,452
$44,575
Rick WolEsteller
CA
$32,538
$34,530
$43,000
John Simola
PW Director
$31,475
$33,470
$35,155
011ie Koropchak
Econ. Develop. Dir.
$22,900
$22,900
$24,800
Roger Mack
Sts/Pks Supt.
$25,010
$26,550
$27,830
Gary Anderson
Zoning/Bldg/Assng
$25,205
$26,755
$27,825
Walt Mack
Water/Sever Supt.
$24,729
$26,250
$27,355
Joe Hartman
Liq. St. Mgr.
$25,500
$25,500
$26,570
Lynnea G111ham
Recept./Sec.
$17,409
$19,885
$20,800
Marlene Hellman
Bkkpr/Sec.
$16,224
$18,970
$19,885
Diane Jacobson
Dep. Reg.
$16,910
$19,385
$20,300
Karen Doty
Exec. Sec.
$15,121
$18,512
$19,427
Cindie Erickson
Liq. St. Clerk
$12,480
$13,278
$14,435
Tom Schumacher
Grounds Maint.
$12,833
$13,353
$14,019
Karen Hanson
Sen. Citz. Ctr.
$13,280
$14,300
$14,300•
*No 1987 salary adjustment made at this time.
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