HomeMy WebLinkAboutRES2023-055 2023 2024 Pay Plan - Retro to Dec 12 2022 CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2023-055
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,ADOPTING THE 2023 AND 2024 PAY PLANS
WHEREAS, Seward City Code 3.15.020 B requires the city council to approve, by
separate resolution, the Pay Plan at the time the operating budget is approved; and
WHEREAS, the attached Pay Plans were approved by the city council at the time the
SPEA contract was approved; and
WHEREAS, the city council adopted the 2023/2024 budget which included a 2.5%
COLA and a 2.5% step increase for all employees in 2023; and
WHEREAS, the city council further adopted and appropriated a 1..5% COLA and a
2.5% step increase for all employees in 2024; and
WHEREAS, while technically, the Pay Plans could be considered adopted, to ensure
transparency and adherence to the Seward City Code,this separate resolution is brought before the
council for adoption.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The Seward City Council adopts the attached Pay Plans, including the
addition of the Longevity Steps.
Section 2. This resolution is retroactive to the date the council adopted the
2023/2024 budget which was December 12, 2022.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th
day of May, 2023.
THE CITY OF SEWARD,ALASKA
Sue McClure,Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2023-055
AYES: Osenga, Calhoon, Wells, Barnwell, DeMoss, Finch, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou MC
City Clerk
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City Council Agenda Statement
Meeting Date: May 8, 2023 t!
To: City Council
Through: Janette Bower, City Manager
From: Tammy Nickell, Human Resources Manager
Subject: Resolution 2023-055:Adopting the 2023 and 2024 City of Seward Pay Plans
Background and justification:
Seward City Code 3.15.020(B) states,"The City Council shall, by separate resolution, approve
the pay plan at the time the operating budget is approved."
The attached Pay Plans were approved by the City Council at the time the SPEA contract was
approved. The city council adopted the 2023/2024 budget which included a 2.5% COLA and a
2.5% step increase for all employees in 2023. The City Council further adopted and
appropriated a 1.5% COLA and a 2.5% step increase for all employees in 2024.
While technically, the Pay Plans could be considered adopted, to ensure transparency and
adherence to the Seward City Code, this separate resolution is brought before the council for
adoption.
The city manager considered restructuring the entire pay plan by removing grade 1 and moving all
positions and grades down a grade on the pay plan. Also considered was applying the same
percentage increase between grades 4 and 5. Currently the percentage increase between grades 4
and 5 is just over 4%. This would result in one consolidated pay plan using normal grade rules —
grades 1 through 9, 10% and grades 10-13, 7.5%.
The city manager requested MC Pehle, CPA, Carmen Jackson, CPA run the scenario and identify the
budgetary impact. This is the identified impact:
• Employees currently in Grade 1 receives a decent increase of around 10%, as intended.
• Employees currently in Grades 2-4 receive no increase.
• Employees currently in Grades 5-9 receive around a 5.75% increase due to the jump
between grades 4 and 5.
• Employees currently in Grades 10-13 receive around a 7% increase with the additional jump
between 9 and 10.
"I ran the numbers on a couple of payroll runs and for the year it looks like it would be around a
$400K-$500K salary impact with an additional $150K or so in benefits."
Due to the large impact on the budget, the complete pay plan restructure is not moving forward at
this time. However, longevity steps have been added to the plan. The addition of the steps is
intended to provide an opportunity for increases for those employees who are"maxed out"at Step
P.
156
The longevity steps parameters are:
• When an employee reaches the longevity steps of their assigned pay level, the employee
shall remain at each step for two (or more) years.
• When the employee completes two (or more) years at each step, the employee moves to
the next step, provided the employee received an overall rating of"satisfactory"or higher
on the employee's performance evaluation and worked continuously as a regular or part-
time employee.
• Employees in longevity are prohibited from skipping steps and must remain at each step as
indicated.
Each step provides a 2% increase,with the overall budgetary impact being approximately$12,000
in 2023, which will be absorbed by the current budget. In 2024, the approximate impact will be
$15,000,which will also be absorbed by the budget.The budget impact will continue to compound
and there will start to be a larger impact as employees move into longevity, however, the value of
retaining long-term employees outweighs the financial impact.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 12,000 (approximate in 2023)
15,000 (approximate in 2024)
This legislation (✓):
Creates revenue in the amount of: $
✓ Creates expenditure in amount of: $ 12,000 (approximate in 2023)
15,000 (approximate in 2024)
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
✓ Budgeted Line item(s): All salary accounts
Not budgeted
Not applicable
Fund Balance Information
Affected Fund (✓):
✓ General ✓ SMIC Electric Wastewater
Boat Harbor Parking 11q/ ✓Water Healthcare
Motor Pool Other
Note: amounts are unaudited
Fund Balance/Net position — unrestricted/unassigned $ N/A
Finance Director Signature:
157
Attorney Review
Yes Attorney Signature:
✓ Not applicable Comments:
Administration Recommendation
✓ Approve Res.
Other:
158
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