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HomeMy WebLinkAboutMINUTES Town Board Budget Study Session 1999-11-19I BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Town Board Budget Study Session November 19,1999 Board Members: Attending: Also Attending: Absent:: Mayor Dekker, Trustees Barker, Baudek, Doylen, Gillette, Mix and Jeffrey Mayor Dekker, Trustees Barker, Doylen, Gillette and Jeffrey Town Administrator Widmer, Ass’t. Town Administrator Repola, Clerk O’Connor Trustees Baudek and Mix Mayor Dekker called the meeting to order at 9:00 a.m. PROPOSED YEAR 2000 PAY PLAN. Assistant Town Administrator Repola presented the 2000 Pay Plan that contains 4 components, and reported that the Mountain States Employers Council finds that the average, or typical employee, is projected to receive a 4.4% increase in pay for year 2000. The average increases by region range from 4.3% in Northern Colorado to 5.1% in the Boulder/Longmont region. Staffs merit pay plan recommendation for 2000 is slightly more aggressive than past years by increasing the average 1999 merit by 20%. In the interest of retaining good employees, and attracting quality applicants for current and future openings, a two-part proposal is offered. The pay plan provides for competitive merit increases for superior performance. In an effort to be competitive with the front-range labor market, an increase to the pay grades is included. 1. Merit Pay: Merit awards will range from 2% to 6%: Average 2% Above Average 2% - 6% Below average reviews will not receive increases, and Dept. Heads will have the ability to award up to 6% to top performers in their respective departments, however, staff cannot exceed 4.5% of their respective payroll. The cost of this pay plan is 4.5% of the 1999 payroll. Staff confirmed that the private sector is included in the Employer Council’s report, and that the CML study does include total compensation—the Town’s benefit package is competitive. 2. Re-graded Positions: Based on CML data, two positions are substantially below the market average, and staff is recommending the following: Museum Curator — Current Pay Grade is 8 — Re-grade to 11 Water Supt. - Current Pay Grade 21 - Re-grade to 23. Employees in these two positions are stiii eligible for merit pay increases. The cost to re-grade these positions is .24% of 1999 payroll. 3. Seasonal Pay Rate: Currently, the entry level rate for seasonal employees is $7.50/hr., and this rate has not been increased since 1996. In addition, employees who stay on the job for ten weeks are eligible for a bonus of $400. At the end of ten weeks, the employee receives an additional 750/hr. for the remainder of the year. Returning employees can earn an additional 5O0/hr./yr. in addition to the $400 bonus. BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Town Board Budget Study Session - November 19,1999 - Page 2 In 1999, at least two departments did not receive enough applications to fill seasonal positions. Departments either had to accept otherwise unqualified applicants or recruit additional candidates. Therefore, staff is recommending that the hourly rate for seasonal employees be increased to $8.00/hr., maintaining the current bonus program. Seasonal employees are vital to the Town’s summer operations. In order to ensure that departments can staff seasonal jobs and be prepared for summer activities, it is important to attract quality applicants. 4. Compensation Study: Annually, staff performs a salary comparison utilizing data provided by CML. The comparison is very simple and only addresses actual salaries and compensation as compared to similar positions in selected municipalities. Due to the size and complexity of our organization, it is necessary to periodically review our compensation system for accuracy and compatibility with the market. The most recent independent compensation study was conducted in 1994. Thus, staff is recommending the Town retain a qualified firm to perform a thorough review of the compensation structure and system in 2000. The 1994 study was approximately $7,800. The cost estimate for a study is approximately $10,000 (assuming a 5% per year cost increase). The 2000 Budget contains $30,000 for Human Resource services. This project would be funded from that line item. Town Administrator Widmer reported that Trustee Baudek had previously expressed support for making mid-year adjustments if the Compensation Study shows the need. Town Administrator Widmer confirmed that if adjustments are necessary, staff could make mid-year adjustments. In addition, staff does not anticipate wholesale changes, however, certain positions are difficult to compare due to their technical nature. Mayor Dekker stated that employees are the Town’s most important resource, noting the importance of deferred income plans and financial future planning. Assistant Town Administrator Repola commented that there is trend toward not investing as much in a benefit package and putting the money into salaries—this is a question that could be posed in the Study. Town Administrator Widmer stated that with the Study, the Town Board would have the opportunity to set standards for future salary decisions. Trustee Doylen added that the entire world has changed significantly, particularly with long-term employees. Trustee Barker confirmed that Town employees do understand customer service, they are respectful to customers, and they display pride in their jobs. \ There being no further discussion, the Board recommends adoption of all 4 points of the 2000 Pay Plan as presented. The study should be completed mid-year. INSURANCE UPDATE. Town Administrator Widmer advised that Blue Cross/Blue Shield has notified the Town of a 10% increase next year and staff is in the process of taking bids. An Insurance consultant is assisting with evaluation of the bids, and information is expected in the near future. Other agencies are experiencing similar increases. There being no further business. Mayor Dekker adjourned the meeting at 9:35 a.m. (O' Vickie O’Connor, CMC/AAE, Town Clerk