Committees favor of 1.5 percent across the board pay increase
By Kellen Olshefski
Editor
City of Elkhorn representatives agreed to a 1.5 percent across-the-board pay increase for city employees, with an additional 1 percent performance-based adjustment, during a joint meeting Monday between the city’s finance and human resources committees.
With several issues unresolved, Finance Committee Chairman Scott McClory suggested the officials take the issue in pieces, approving the pay increase, and then determining whether “red-circled” employees would be included.
Based on a recommendation from the Human Resources Committee, McClory made a motion to support the pay increase and additional performance-based bonus.
The joint committees unanimously supported the motion. Alderman James Boardman was not in attendance at the meeting.
With the 65th percentile being set as a median range for city employees by the HR committee, about 17 employees were “red-circled,” creating a concern for the committees.
“Red-circled” positions are considered positions with a pay rate outside of the range of the determined percentile. In essence, red circling a position freezes the pay rate until such time that market conditions lead to a pay range adjustment that would bring the employee back into the designated pay range.
According to McClory, under the current wage and salary plan, red-circled employees would not be eligible for the across-the-board pay increase.
City Administrator Sam Tapson said these employees are eligible for the performance-based bonus, however, as it would be paid in a lump sum on the employee’s anniversary date of employment occurring in 2014 and would not affect the employee’s base pay.
The committees essentially had three options to consider – leave the 17 employees red-circled; increase the maximum pay rate by 5 percent to include 16 of the employees in the pay rate increase; or increase the pay rate enough to include all 17.
“To me, either we’re going to red-circle all 17, or we’re going to red-circle none,” Alderman Hoss Rehberg said.
Rehberg said based on his research, he didn’t feel the one employee wasn’t that far out of the pay range that the city could single that employee out.
According to McClory, nothing would preclude the board from making an additional pay increase in 2015 under the new wage and salary plan.
“My point being, next year we could decide nobody gets anything,” he said. “This is a one-time thing, it’s a snapshot of where we are with our current economy and the current financial situation … in the city.”
In light of this information, McClory said he wasn’t opposed to giving all red-circled employees the pay increase.
“I’m with Hoss, I don’t think we need to single these other people out for a 1.5 percent across-the-board,” he said.
Tapson suggested if the city is going to open it up for red-circled employees to go beyond the maximum pay rate, the maximum should be changed to keep those employees in range.
“The problem you run into is you get lots of folks out of range, and how do you explain out range, how do you get out of range?” he said.
Tapson continued, questioning whether committee members would like to do a 5 percent increase, or even a 2.5 percent increase, which would be the maximum year availability.
“Move it 2.5 percent above that maximum and they’re still going to be within range at the end of the year,” he said. “If you don’t do that and you give them even the 1.5 percent, they’re going to be at least 1.5 percent out of range.”
With the implementation of the plan, McClory said he wanted to be able to do this as a one-time thing to get everyone on the same playing field and let everyone know what the rules in regards to the plan would be going forward.
Tapson said, coming out of Act 10, going forward with an increase in the maximum pay rate would provide a positive statement to employees, giving them a year to “learn the ropes,” and understand what it’s all about.
“They’re not going to feel like they’re penalized right out of the box,” he said. “They’re going to have some time to digest and say, ‘OK, I understand what’s going on.’”
Tapson said he would be meeting with employees to explain the new plan and discuss how it impacts them.
Alderman Brian Olson made a motion to implement the 1.5 percent increase, based on the fact all employees would receive it, for which a maximum pay rate adjustment would be determined by Tapson, and then move forward with the wage and salary plan.
Olson reaffirmed Tapson’s understanding the motion would make it so the group that would have been red-circled is being granted the 1.5 percent across the board, and their current pay would be adjusted so that with the 1.5 percent increase, they will be at their new maximum.
The committees unanimously approved the motion, agreeing upon the across-the-board 1.5 percent increase for all city employees.
