Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

CC:

Cynthia Wagner, Assistant City Manager

 

Date:

 

May 28, 2013

RE:

History of Pay Plan Adjustments Since 2005

 

The City of Lawrence has three pay plans: one for police, one for fire and one primary pay plan.  The pay plans set forth the salary ranges for all of the City’s job classifications.  A range has a minimum and maximum rate of pay and employee pay is within this range.  Routine adjustments to the pay plans can typically be made in two ways.  First, the range itself can move.  A range adjustment means that the minimum and/or maximum amounts associated with each pay range may adjust, but employee pay within the range is not necessarily adjusted, unless the employee pay now falls under the new range, in which case employee pay is typically brought up to the new range minimum.  Another way to adjust the pay plan is to apply a wage and range adjustment.  This wage and range adjustment increases the actual wages that employees are paid and moves the minimum and/or maximum amounts associated with each pay range. Both wage and range adjustments have typically been made in response to market conditions in order to maintain competitive salaries and have been made at the beginning of the calendar year. 

 

Another component of employee compensation is the merit program, which provides compensation adjustments to employees based upon performance.  While the merit programs do not directly impact the pay plan structure, merit adjustments have provided additional movement within an employee’s salary range.  Merit pay has typically been awarded on the employee’s anniversary date of employment.  However, when the merit pool for employees covered by the primary pay plan was established in 2009, employees were awarded adjustments at the beginning of the calendar year. 

 

The following provides a history of adjustments to the City’s three pay plans since 2005: fire, police, and the primary pay plan.  Unless otherwise noted, the range adjustments indicated below were increases to both the minimum and maximum of the salary ranges.

 

2005:  During this year there was a reconstruction of the city’s pay plans, three pay plans were established (fire, police and primary) with the primary pay plan experiencing significant changes (from 7.7% between pay ranges to 12%, fewer pay ranges and several classification changes). A 4.5% range adjustment was made to the police, fire and primary pay plans.  Subsequently a 2% wage and range adjustment was made to all three pay plans.  Dependant on placement in the new pay plans, some employees received additional wage increases or experienced a wage freeze in order to move them inside their newly assigned ranges.  All city employees not at or above top of scale were eligible for a 2.5% or 5% pay adjustment on anniversary date based upon merit. A total amount of approximately $1.6 million in the General Fund was allocated to provide for the wage adjustment. Merit adjustments were an additional amount. 

 

2006:  A 3% range and wage adjustment was made to all three pay plans.  All city employees not at or above top of scale were eligible for a 2.5% or 5% pay adjustment on anniversary date based upon merit. 

 

2007:  A 3% range and wage adjustment was made to all three pay plans.  All city employees not at or above top of scale were eligible for a 2.5% or 5% pay adjustment on anniversary date based upon merit. 

 

2008:  A 2% range and wage adjustment was made to all three pay plans. All city employees not at or above top of scale were eligible for a 2.5% or 5% pay adjustment on anniversary date based upon merit.  A total amount of approximately $1.5 million in the General Fund was allocated to provide for the wage adjustment and merit adjustments. 

 

2009:  A 1.5% range adjustment was made to the police and fire pay plans.  MOU-covered employees received a 1.5% wage adjustment.  A 1.5% range adjustment was made to the primary pay plan.  There was no wage adjustment applied to the primary pay plan and non-MOU positions in the police and fire pay plans.  Compensation programs for MOU-covered employees provided for 2.5% or 5% pay adjustment on anniversary date based upon merit.  A 2% merit pool was provided for employees within the primary pay plan and all non-MOU employees.  The merit pool offered opportunities for increases ranging from 0%-5%.  The total cost for MOU-covered employee compensation adjustments (wage adjustment and merit program) was roughly equivalent to same amount as a 2% merit pool would have been for the MOU groups.

 

A total amount of $880,000 was budgeted for 2009 in the General Fund for compensation adjustments, representing a 2% merit pool.  Of that amount, the following was budgeted for MOU-compensation adjustments in the General Fund:  approximately $213,000 for the police MOU-group compensation adjustments, including the wage adjustment, merit program and new competency pay adjustments; approximately $185,000 for the fire MOU-group compensation adjustments, including the wage adjustment and the merit program.  

 

2010:  A 0.5% range and wage adjustment was made to the MOU-covered positions in the police and fire pay plans.  A range adjustment of 0.5% on minimum salaries and 1.25% on maximum salaries was made to the primary pay plan and non-MOU positions in the police and fire pay plans.  There was no wage adjustment applied to the primary pay plan and non-MOU positions in the police and fire pay plans.  Compensation programs for MOU-covered employees provided for a 2.5% or 5% pay adjustment on anniversary date based upon merit.  A 1.25% merit pool was provided for employees within the primary pay plan and all non-MOU employees. The merit pool offered opportunities for increases ranging from 0%-5%. The total cost for MOU-covered employee compensation adjustments (wage adjustment and merit program) was roughly equivalent to same amount as a 1.25% merit pool would have been for the MOU groups. 

 

A total of approximately $650,000 was budgeted for 2010 in the General Fund for compensation adjustments, representing the 1.25% merit pool.  Of that amount, the following was budgeted for MOU-compensation adjustments in the General Fund: approximately $101,000 for the police MOU group, including the wage adjustment, merit program and new competency pay adjustments; approximately $94,000 for the fire MOU-group compensation adjustments, including the wage adjustment and the merit program. 

 

2011:  During this year, the police officer pay range and police officer wages were adjusted 1.5% (no adjustment to detective positions). A standard percentage range adjustment was not applied to the pay ranges for detective in the LPOA pay plan or any of the sworn fire ranks in the IAFF pay plan.  An additional step (2.5%) was added to the range maximum for all sworn ranks in the IAFF pay plan.  A range adjustment of 0.5% on minimum and maximum salaries was made to the primary pay plan and non-MOU positions in the police and fire pay plans.  There was no wage adjustment applied to the primary pay plan and non-MOU positions in the police and fire pay plans.  Police and fire merit programs for MOU-covered employees provided for a 2.5% or 5% pay adjustment on anniversary date based upon merit.  A 1.5% merit pool was provided for employees within the primary pay plan and all non-MOU employees. The merit pool offered opportunities for increases ranging from 0%-5%. The total cost for MOU-covered employee compensation adjustments (wage adjustment and merit program) was roughly equivalent to same amount as a 1.5% merit pool would have been for the MOU groups. 

 

A total of approximately $586,000 was budgeted in the General Fund for 2011 for compensation adjustments, representing a 1.5% merit pool.  Of this amount, the estimated cost of the IAFF Local 1596 step program was $50,000 in 2011 and the addition of one step at the top of all MOU-covered employee pay grades within the fire pay plan was estimated to cost $65,000 in 2011. The estimated cost of the merit/step program, along with the competency program, for the LPOA was estimated at $107,000 in 2011.  The 1.5% wage adjustment for the police officer positions for the LPOA was estimated at $106,500 in 2011. 

 

2012:  A 1.0% range and wage adjustment was made to the pay ranges for MOU-covered positions in the fire pay plan and pay grade 301, Police Officer, in the police pay plan.  Pay grade 302, Detective, was excluded from the range and wage adjustment.  No range or wage adjustment was applied to the primary pay plan and non-MOU positions in the police and fire pay plans.  Police and fire merit programs for MOU-covered employees provided for a 2.5% or 5% pay adjustment on anniversary date based upon merit.  A 1.2% merit pool was provided for employees within the primary pay plan and all non-MOU employees.  The merit pool offered opportunities for increases ranging from 0%-5%.  The total cost for MOU-covered employee compensation adjustments (wage adjustment and merit program) was roughly equivalent to same amount as a 1.2% merit pool would have been for the MOU groups.

 

A total of approximately $635,000 was budgeted in the General Fund for 2012 for compensation adjustments, representing a 1.2% merit pool.  Of this amount, the estimated cost of compensation programs, including a range and wage adjustment for MOU-covered employees in the fire and police pay plans was $446,000.

 

2013:  A 1.5% range and wage adjustment was made to the pay ranges for MOU-covered positions in the fire pay plan and pay grade 301, Police Officer, in the police pay plan.  Pay grade 302, Detective, was excluded from the range and wage adjustment.  No range or wage adjustment was applied to the primary pay plan and non-MOU positions in the police and fire pay plans.    Police and fire merit programs for MOU-covered employees provided for a 2.5% or 5% pay adjustment on anniversary date based upon merit.  A 1.0% merit pool was provided for employees within the primary pay plan and all non-MOU employees.  The merit pool offered opportunities for increases ranging from 0-5%.  The total cost for MOU-covered employee compensation adjustments (wage adjustment and merit program) was roughly equivalent to same amount as a 1.0% merit pool would have been for the MOU groups.

 

A total of approximately $533,000 was budgeted in the General Fund for 2013 for compensation adjustments, representing a 1.0% merit pool.  Of this amount, the estimated cost of compensation programs, including a range and wage adjustment for MOU-covered employees in the fire and police pay plans was $375,000.