FY23 FULL BUDGET REPORT ADOPTED

investment plan management. The Assistant Town Manager position is funded through the General Fund and the stormwater position is funded through the Stormwater Enterprise Fund.

Other position requests received from various departments were reviewed and deferred for consideration until long-range forecast models demonstrate the capacity to sustain the positions long- term and incorporate all requests into a long-range plan and budget capacity model. Town senior management is committed to working with departments to assess and evaluate strategies and alternative mechanisms to manage workload capacity during FY 2023, which may include use of part- time resources available through lapse salary or consideration of some requests at mid-year, with Town Council approval.

Employee Compensation/Merit Pay

Town Council has affirmed its desire to be at or near the top of the market for employee compensation to be able to effectively recruit and retain quality employees. A comprehensive strategy to support competitive market compensation is recommended for implementation in FY 2023. The FY 2023 proposed budget recommends the same merit pay schedule as used in FY 2022 for full-time and part-time regular 30-hour employees. Job Classification pay grade reclassifications are recommended for several staff positions. The proposed budget also incorporates the additional state required LGERS (Local Government Employees Retirement System) employer funding contribution increase and health care cost adjustments.

Proposed merit awards for FY 2022 performance evaluation ratings are recommended to be:

Meets Expectations 3%

Exceeds Expectations 4.5%

Far Exceeds Expectations 6%

In addition to merit pay awards, a 2%market conditions pay adjustment is recommended for all full-time and part-time regular 30-hour employees to reflect significant inflationary changes in the economy and maintain market competitiveness within the regional employee market. A review of projected market adjustments across Wake County will be shared during budget workshops. Inspections, Planning, and Parks and Recreation Department position classifications were reviewed in this year’s job classification study. As we have been experiencingwithmany of our professional positions, market and pay grade classifications for many of the positions in these departments need to be upgraded by 1-2 pay grades to reflect current economic conditions and recruitment competitiveness. These recommended changes and associated salary adjustments have been incorporated into the proposed budget and the updated Pay Grade Classification Schedule. In addition to the pay grade classification changes described above, a 3% adjustment to all pay ranges is recommended to reflect rate adjustments to starting pay levels. Salaries for employees that fall below the newminimum pay for any pay grade will be automatically adjusted to the minimum prior to adjustments for pay grade classification changes and merit pay awards.

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