FY2020 Budget

An adjustment to the merit pay schedule is recommended for implementation beginning in FY 2020 for performance evaluation rating based on 2019 fiscal year performance. The estimated average is 3.4% based on 100% projected distribution and historical ratings, trends which are not expected to be significantly different for fiscal year 2019 performance evaluations. This would represent an overall increase of 0.64%, less than 1% of overall payroll. The average actual merit increase in Fiscal Year 2019 was 2.76% based on Fiscal Year 2018 performance ratings.

4% Exceeds Expectations

6% Far Exceeds Expectations

2% Meet Expectations

3.4% Average Merit

Market pay adjustments authorized in the FY 2019 budget for public safety and inspections employees were implemented in January 2019 and produced immediate results in enhancing both recruitment and retention of staff and bringing those employee salaries more in line with tenured peer employees. These adjustments, in combination with the proposed adjustments in employee health care premiums proposed for FY 2020, have successfully enhanced total compensation for those employees. These one-time adjustments and the establishment of pay incentive adjustments for advance knowledge, training and experience will provide proactive mechanisms for retaining pay competitiveness. Pay adjustments for other hard-to-recruit and/or retain positions will be necessary throughout other job classifications and will be evaluated and recommended for adjustment during FY 2020. Projected costs of additional market pay adjustments for an average of between 3 – 5% adjustment to non-public safety salaries is $ 200,000 - $250,000; individual salary adjustments would be based on market review. Funding for these market adjustments is not included in the base budget but is being requested through an authorization to use lapse salary. An alternative approach to funding is provided in the tax increment budget enhancement scenarios, with an allocation of one-half of the estimated funds recommended in each of the two scenarios. A 2% adjustment to pay ranges is recommended to reflect rates of pay offered in the recruitment market and by competing jurisdictions to ensure the Town can continue to attract and retain qualified and skilled employees. This adjustment does not adjust existing employee salaries unless they fall below the adjusted beginning pay range and will have a minimal budgetary impact.

Total funds requested to support the merit and market pay proposals and related payroll costs is approximately $500,000 (total compensation).

Part-time pay plan rates were last adjusted for Fiscal Year 2017. No changes are recommended for Fiscal Year 2020 but will be evaluated in relation to work done to evaluate pay plan and policy recommendations for full-time employees. Part-time pay classifications and rates will be evaluated and streamlined as a part of the new payroll system, part of the Munis ERP upgrade.

Other Employee Benefits

At its meeting in January 2019, the Local Government Employees Retirement System (LGERS) Board amended its policy for employer contribution rates to LGERS. Effective July 1, 2019, the base employer contribution rate with respect to law enforcement officers (LEOs) will increase from 8.50% to 9.70% of reported compensation. With respect to all other employees, it will increase from 7.75% to 8.95% percent

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