FY23 FULL BUDGET REPORT ADOPTED

Police and fire positions have also been incorporated into the job classification review annually to validate and benchmark entry and tenured salary levels. The Town’s early actions to adjust salary levels in FY 2020, other grade level adjustments that took effect in FY 2022 to address public safety market rates of pay, and the addition of related specialization and tenure adjustments have placed us in a favorable position for market competitiveness this year. No changes are recommended for FY 2023. As peer communities catch up and propose adjustments to their pay plans, we will remain vigilant in observing salaries in relation to our recruitment and retention needs. Continued investment in our employees through “front of class” compensation and benefits has been articulated by Town Council through its strategic plan and during budget previous meetings and remains vital to managing our workload through limiting turnover and attracting new talent when necessary. Total funds requested to support the merit and market pay adjustments, and adjustments to the minimum pay grades and related job classification adjustments are estimated to be approximately $1,493,000 (total compensation). Part-time pay plan rates have also been reviewed in depth. Pay rates were last adjusted in FY 2021 and current rates of pay are not attracting candidate pools to fill and maintain staff for positions needed to support core services and programs, especially Parks and Recreation facilities and programs. Rates for various positions have been adjusted based on peer community comparison and economic conditions. There is no anticipated additional budget impact for FY 2023 as existing compensation allocations have been underutilized the past several years due in part to facilities and programs operating at less than full capacity/projected levels. A comprehensive evaluation of staff utilization and associated costs for all Parks and Recreation programs (including cost recovery levels) will be undertaken during the fiscal year to better inform FY 2024 budget requests. Lapse salaries could be utilized if part-time staffing costs exceed budgeted allocations. The Local Government Employees Retirement System (LGERS) Board employer contribution rate for FY 2023 is 12.10% for non-LEO employees and 13.10% for LEO employees. This is an increase of .75% for non-LEO employees and 1% for LEO employees and represents the first year of reduced LGERS stabilization increases experienced over the past four years. The cost of this increase is estimated to be $132,000 and has been included in personnel total compensation costs. The Employer Contribution Rate Stabilization Policy (ECRSP) adopted by LGERS in July 2021 outlines the policy about how the LGERS Board will determine future required employer contribution rate for fiscal years 2023 through 2027. Other Employee Benefits

Health Care Costs

The Town belongs to the North Carolina Health Insurance Pool (NChip) which allows for the sharing (pooling) of medical claim costs over a certain amount to smooth and minimize the fluctuations in plan renewal based on a relatively smaller number of covered lives and large claims that sometimes occur. It

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