ITEM 1 Classification and Compensation StudyP
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MINNESOTA
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: January 8, 2016
SUBJECT: Classification and Compensation Study
On Wednesday, we will continue discussion of the Classification and Compensation Study results that
were first presented to the Council on December 14 by Ann Antonsen from Springsted. She presented
survey data, classification results, and a proposed pay plan that required time for the Council and staff
to review and absorb before taking action. Further, the Council requested review of the raw survey
data.
Below I have listed the steps to complete the process now that the study component of this project has
been completed:
Classification Study
o Approve Classification Study (Action item)
o Develop Appeal Process (for individual employee appeal of study result)
o Use Systematic Analysis and Factor Evaluation (SAFE) system to evaluate new positions
and to reevaluate existing positions that undergo change
Compensation Study
o Adopt 2015 Pay Plan (Action item)
o Adopt 2016 Pay Plan (Action item)
o Adopt implementation plan for study results (Action item)
■ Effective date
■ Placement on Pay Plan
An important outcome of the Council action is that there is an approved implementation plan to convey
to employees. At the last meeting, implementation options were discussed briefly and then only in
concept. As was stated, there are many implementation options. After additional analysis using the
actual proposed pay plan and current pay rates, the full implementation cost is estimated to be
approximately $30,000 more than the 2016 approved personal service budgets in the General Fund,
Water, and Sewer budgets. This includes the $10,000 identified in the Council Contingency for
implementation of the pay study. It does not take into account the additional $18,138 increase in the
Contingency made in December. Further, a portion of the increase would be funded by the Water and
Sewer Funds; this amount would not be funded entirely by the General Fund.
Full implementation means that all employees are moved to the step in the 2015 proposed pay plan that
is closest to their existing pay (without going below existing pay) and that all employees who are below
the minimum pay are brought up to the minimum, and that 2016 steps for eligible employees are made
on January 1, 2016. Of course, any implementation other than full implementation will cost less.
Ann Antonsen will be at Wednesday's meeting to answer your questions now that you have had a
chance to review the information presented in December, the raw data, and the full implementation
cost estimate. Council action to adopt the study results, pay plans, and implementation plan can take
place at this meeting or at the January 25 meeting.
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