City Council Agenda Packet 12-10-1990 (2)AGENDA FOR THE SPECIAL MEETING OF THE CITY COUNCIL
Monday, December 10, 1990 - 6:30 p.m.
Mayer: Ken Maus
Council Members: Fran Fair, Warren Smith, Shirley Anderson, Dan
Blonigen
10. Call to order.
22) Consideration of establishing 1991 salaries and wages for non-
union personnel.
3Q Adjournmen .
O�1K\
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Special Council Agenda - 12/10/90
Consideration of establishina 1991 salaries and waaes for non-
union personnel. (R.W. )
REFERENCE AND BACKGROUND:
For the past number of years, the Council has met in a special
session to establish the following year's salaries and wages
for non-union personnel . Lacking an established policy for
this procedure, the Council has used various methods of
adjusting non-union salaries, including:
straight across-the-board percentage raises
an across-the-board percentage raise plus
establishment of a pool of money (percentage amount)
to be used by the City Administrator for merit
raises
a basic percentage increase by class of employees
basing the actual percentage for each employee on
the highest current salary of an individual in that
category
While there may not be- an easy way of adjusting salaries
annually, it does appear that if the Council could establish
r a basic policy or method to use, it may be easier for all
�• employees to understand and even easier for the Council to
react to annually. While an extensive policy is not suggested
for adoption this evening, this will be one of my top
priorities for the beginning months of 1991. At this point,
I will have suggestions on methods to establish a wage policy
basad on methods used in surrounding communities such as Elk.
River, Buffalo, etc. A factor that compounds this problem is
that any wage policy the City has has to correspond to as
comparable worth plan to meet the pay equity guidelines
required by the state. In reviewing our present comparable
worth plan adopted in I986, it appears to me that although
salary ranges for general classes of employees were
astabl is had, no method was over determined for how an
individual would progress within that salary range in the
coming years. In the past, cost of living adjustments
actually did not move an individual within a salary range, as
typically the salary ranges were also adjusted by the cost of
IIving factor. In other words, if an individual was
provlously paid at the bottom of a pay range, they have
technically never movod off the bottom, and this could result
In complications In meeting the new comparable worth law by
December 31, 1991. This is really another subject which I
wi 11 got into at a future Council meeting once we are bottor
prepared to implement our plan.
Special Council Agenda - 12/10/90
In my research of how salary adjustments are handled in Elk
River and also Buffalo, it appears that a step system has been
used as a method to increase an individual's salary over a
length of time. The esinbiishment of a step system makes
sense, especially when considering new employees, but is more
difficult to utilize for existing employees. Under the step
system, an individual could have a starting pay at a
percentage such as 70% or 80% of a certain salary figure and
would automatically be adjusted annually on their anniversary
date until they reach 100% of this figure. In addition, as
the salary ranges are adjusted ai,nually by a method such as
cost of living adjustments, they would receive an additional
increase during those step years. The idea would be to reach
a certain level after four or five years which compensates the
individual for increased experience and knowledge of the job,
familiarity with the community, and also longevity/seniority.
Once we can agree on what appears to be a fair compensation
for each position or class in today's dollars, if a wage
policy established that these salary levels were adjusted to
reflect the cost of living annually, these could be an
automatic procedure done by myself; and the only issue the
Council would have to address annually is establishment of a
percentage or a dollar amount of money that could be used for
merit/performance increases. In addition to the cost of
4c living adjustment, I do feel that there should be some method
to recognize employee performance for doing a good job.
Without this incentive, employees may feel that it doesn't
matter how good a job they do or how much extra effort they
put into their position, as they would not receive any reward
for it. While I do not believe merit pay should be strictly
granted for seniority, it does help recognize an employee who
has committed a longer term employment to the City.
in regards to establishing a cost of living adjustment, I
believe we have tried to estimate the upcoming year's cost of
living, which can be hard to determine accurately. As a
result, I believe the Council should baso next year's cost of
living adjustment on the previous year's CFI index. In this
way, it's based on an actual cost of living adjustment and is
no longer guessing, which could result In the Council over-
estimating or underestimating the actual Increase. Most
communities I have talked with use the previous 12 months to
establish a COLA adjustment factor.
As I indicated previously, the City has hired some now
employees and created now positions which did not exist a
number of years ago, and an in-depth evaluation of each
position has not yet taken place. A job value will be
established for these now and changed positions, and it is my
intention to have all positions re-evaluated since last done
in 1985. While this may take a few months to accomplish, I am
Special Counci 1 Agenda - 12/10/90
expecting that some positions will require further adjustments
early next year to coincide with the eventual pay equity plan
the City must implement by the end of next year. I think a
number of years ago, Monticello was considered very
progressive as a growing community, including the wage base of
its employees. While I still feel Monticello is a growing and
progressive community, in comparing wage scales for a number
of positions with communities like Elk River and Buffalo, also
expanding communities, Monticello's salaries for its employees
is certainly not to be considered excessive. I have enclosed
an example of current salaries in Elk River and Buffalo for
your comparison; and although some of the positions are
labeled differently, Monticello is certainly not at the high
end of the wage scale compared to surrounding communities. I
believe the City has good employees who should be recognized
for their dedication and work performed with adequate
compensation. I still believe that cost of living adjustments
only are warranted to keep an employee equal to where he was
last year and is not really a raise. In the long run, we do
need to be competitive with other municipalities if we wish to
retain our existing employees or attract new ones when
vacancies occur.
If the Council creates an additional merit/performance
percentage or dollar amount that could be used for this
purpose, I believe a plan could be established that would
grant these merit increases on a basis of a larger increase
for those employees currently paid less than a mid -point range
and a lesser increase for those above the mid -point. By mid-
point, this could be a salary established in the middle of the
range or at any point the Council felt was appropriate for a
qualified individual in that position. This would help got
those individuals paid less than the average to be increased
faster while those above a certain point may still receive a
merit increase but not as large as those below an average
line. While I believe this would be a fair method to utilize
In the future, I have spent many hours reviewing our present
comparable worth scale and those of surrounding communities to
arrive at what should be considered an average salary for each
position. It appears that this will take more study before
I'm able to recommend each salary category for the Council.
I'm sure that the majority of the Council members are more
confused now than they were before; and with only one-half
hour to discuss salary adjustments for next year, we will not
be able to got into too much depth on establishing a now plan.
In the long run, I believe the establishment of a good policy
and an adequate wage baso for each class of employee will be
beneficial for future Councils and will make the special
I( meetings to consider wage increases a thing of the past.
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SUPPORTING DATA:
Special Council Agenda - 12/10/90
Salary history; Kiplinger News Letter; Examples of positions
in surrounding communities and school district; Recent salary
adjustments.
As an additional note, the upper midwest cost of living index
has increased 5.48 from this past October to October 1989.
The average for the U.S. for the past 12 months is 6.38.
11
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THE KII'LINGEE2 WASHINGTON LETTER
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/ 171911'.1.. NW,. Waxiiiip". n C. ionaa939 Itt: 101,1117bma
Dear Client: Washington, Oct. 19, 1990
Late; Of thinaa Roina on besides budget 6 taxes:
The embargo is startlne to bite ... not much getting in OR out.
But it may take until early next vear before Saddam buckles.
Ile' 11 olav for time, for the bast deal that its can wangle...
figuring we' 11 grow impatient and start looking for an easy way out.
Chances for war increase the loneor he stonewalls.
Several bia batiks may ao under in the next year... dragged down
by real estate commitments, foreign loans, junk bonds, other bum deals.
But they won't disopnenr...railed banks will probably be merged
Into healthier institutions or rescued by the gov't through other means.
Conrtress and FDIC will du what's headed to prevent a collapse.
Commercial real estate will stay In the bankers' doghouse...
At LEAST for next throe years or so in most parts of the country.
Bankers think that it will take that long to absorb the current glut,
Besides , they have investors and regulators looking over their shoulders.
So thav'll avoid such loons, and MORE developers will go under.
Developers will hove to out ug more euulty In the years ahead
to get loans. Bankers wish t1tay tied Insisted on that in recent years.
61, i���} :hi_r Yi r ..i 17��, 'measured by Consumer Price Index
from as see, thrauglr this Dec. Huchhigher then we thought'rarller...
before the Hideast tensions. .Even if crude oil doesn't keep climbing,
increases I» all products wilt still work their way through the market.
But inftatiar will cool off In 191, Clow MUCH depends on mil,..
when war worries will subside. For planning purposes, figure on 441.
Reminder on social security wage bane., jt will rise to $57,400
$text yenr from 051,300 lilts year. Hnxlmum payroll tax will be $4085,10.
Interest rates will Alin Into this year and first half of next.
Ilere nre the rensous: The recession will curtail borrowing.
Federal Reserve w1ti anon credit, plus some headway on budget control.
Prime rate wilt fall to 842.92 by next summer, from 102 now.
Fixed-rate laortanAes, about SIM. Adjustable rates look better.
Tromxury bills, down to 62-641. A safe haven In troubled times.
T•bonda will drop a little below 8% ... good long-term investment.
Corporsta and municlDat bonds, down 12. Stick to high quality.
CDs, heeding lower. lock in current rates for two to five years.
How much will the Fed cut short -teres rates?
Not much right ave ...about a quarter percent in next fav weeks.
More later.. cautiously, to protect the dollar and avoid worse Inflation,
,r Rates won't drop low enough or soon enough to hoed off recession
or bring fast recovery, but lower rates will sake the slump less Severs.
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pgn,ew rw�t Kwl..ea ww, n4 w. not b wwxaxrt To M swxr� 1� w hx. w wr ra+d nus molVxx
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COMPARISONS WITH SURROUNDING COMMUNITIES
City Administrator
Finance Director
Street Supt.
WWTP Supt.
Bldg. & Zoning Admin
Utilities Director
Public Works Dir.
Asst. Admin.
Elk River Buffalo
$60,234 $56,935
50,196
49,601
49,601
49,007
53,296
37,730
38,717
The above positions are examples of some of the salaried positions
in these communities. While each community may not have the same
title or exact duties for each job, it will give you an idea of the
administration positions.
For example, Elk River does not have a position called "Public
works Director," but you can assume that the duties of the Street
Superintendent or WWTP Superintendent would be comparable to our
classification of Public Works Director. In Buffalo's case, they
have both a Utilities Director and Public works Director, where we
have Public works only.
Again, Elk River doesn't have a position such as Assistant
Administrator/Community Development Director like Jeff's, but Elk
River's Building and Zoning Administrator may be similar to our
classification for many of the duties.
Total 1990 staff payroll: $475,579
(excludes union, part-time liquor personnel)
Total PR 4-1/28 51 5-1/2i 6% 6-1/28
Cost @ $21,401 $23,779 $26,157 $28,535 $30,913
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EXAMPLES
RECENT SCHOOL DISTRICT SALARY ADJUSTMENTS
For the 1990-91 and 1991-92 school year, the salary increases for administration and
clerical ranged between $2,500 to $4,000/year as follows;
d,_
1990-91
Annual
1991-92
Salary
1988-89%
1989-90%
Amount
%
Amount
%
1990-91
Superintendent
8.3%
7.74ob
$4.000
5.7%
$4,000
5.4%
574,100
Asst. Supt.
6.2%
5.94b
$3.000
4.9%
$3,000
4.7%
564,300
Business Manager
8.4%
9.7%
$2.500
4.8%
$2,500
4.6%
$54,415
H.S. Principal
5.5%
5.2%
$2.600
4.4%
$2,600
4.2%
$61,865
H.S. Principal
3.9%
5.4%
$2.700
4.7%
$2,600
4.3%
560,040
"omm. Ed. Dir.
5.3%
6.4%
$3.100
6.3%
$3,100
5.74b
$52,712
Asst. Comrn. Ed. Dir.
7.0%
6.5%
53.200
8,9%
$2,200
5.6%
539,200
Secretarial Staff
7.0%
6.5%
Approx.
8.5%
Approx.
6.5%
d,_
Mayor - $ 250/mo
Councilmembers - $ 195/mo
City Attorney - Foe basis (hourly)
Other Consultants - Foe basis
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CITY OF MONTICELLO
SALARY SCHEDULE
Pr.
VgI.u4
1998
--
jiL
City Administrator
$50,160
l07
Public Works Director
40,694
9t -/do
Assistant Administrator
38,221
go
Street/Park Superintendent
32,215
j,
Building Inspector/Zoning
31,905
-7g
Liquor Store Manager
30,610
g /
Water/Sewer Superintendent
29,485
73
Economic Development Director
28,707
7S
Senior Citizen Center Director
21,669
.57
Utility Billing/Receptionist
$ 9.35/hr
x7
Utility Billing/Secretary
10.35/hr
57
Bookkeeper/Secretary
11.05/hr
SS
Deputy Registrar Clerk
11.27/hr
Sf
Deputy Registrar Clerk
9.35/hr
S7
Executive Secretary
10.82/hr
yy
Liquor Stare Clerk
7.96/hr
yx.
Bldg./Grounds Maint. (union) P.T.*
5.35/hr
�ST-
Streets/Park Maint. Personnel (union)*
12.35/hr
S
Part-time Liquor Store Personnel
4.00-5.55/hr
*Union contract expires 4/1/92
Street/Park Buildinq
Maint,
1st 6 mo. - $ 9.88 $ 5.35
After 1 yr - $11.12 $ 6.02
After 18 me. - $12.35 $ 6.69
Mayor - $ 250/mo
Councilmembers - $ 195/mo
City Attorney - Foe basis (hourly)
Other Consultants - Foe basis
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