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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. 13 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. L 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 C 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. L 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. L