Human Resources Director Renee McMahon presented the first of two administrative briefings on the city’s proposed pay plan, a multi‑step package intended to make compensation more internally equitable, externally competitive and legally defensible.

McMahon said the project rested on three components: foundational work and market studies, the pay matrix itself, and the classification system to place positions on the matrix. The city contracted consultant CMS to perform market wage analyses (2023 and 2024). McMahon explained the current proposal uses a five‑step system with step 3 set near the market midpoint; between‑step differentials are 5% and there are about 73 pay grades with ~2.5% between grades.

“Step 3 is the midpoint,” McMahon said, noting the market‑anchoring approach brought many positions closer to competitive pay; she said prior adjustments over 2015–2024 totaled roughly 17.13% in cumulative increases for employees and that most positions currently land near 91% of market at step 3 after recent adjustments. The proposed structure also adds procedures for job‑evaluation reconsiderations via a compensation committee and intends to value job content, retention and career advancement.

Commissioners pressed staff on funding and classification mechanics. Finance staff said the plan spans multiple funds and that enterprise funds can offset costs by rate adjustments while general‑fund impacts would need careful budgeting given recent property‑tax changes. McMahon said testing and phased implementation would be necessary and that additional implementation‑year tradeoffs — such as balancing initial pay adjustments against future cost‑of‑living adjustments (COLAs) — will be analyzed in the budget process.

Next steps: staff will return with a second administrative presentation focused on the pay matrix mechanics and a later regular meeting item that would include funding implications and an implementation schedule for commission consideration.