A

An adjustment to the merit pay schedule is

recommended for implementation beginning in FY

2020 for performance evaluation rating based on 2019

fiscal year performance.

The estimated average is 3.4% based on 100% projected

distribution and historical ratings, trends which are not

expected to be significantly different for fiscal year 2019

performance evaluations. This would represent an

overall increase of 0.64%, less than 1% of overall

payroll. The average actual merit increase in Fiscal Year

2019 was 2.76% based on Fiscal Year 2018 performance

ratings.

Market pay adjustments authorized in the FY 2019 budget for public safety and inspections employees were

implemented in January 2019 and produced immediate results in enhancing both recruitment and

retention of staff and bringing those employee salaries more in line with tenured peer employees. These

adjustments, in combination with the proposed adjustments in employee health care premiums proposed

for FY 2020, have successfully enhanced total compensation for those employees. These one-time

adjustments and the establishment of pay incentive adjustments for advance knowledge, training and

experience will provide proactive mechanisms for retaining pay competitiveness.

Pay adjustments for other hard-to-recruit and/or retain positions will be necessary throughout other job

classifications and will be evaluated and recommended for adjustment during FY 2020. Projected costs of

additional market pay adjustments for an average of between 3 – 5% adjustment to non-public safety

salaries is $ 200,000 - $250,000; individual salary adjustments would be based on market review. Funding

for these market adjustments is not included in the base budget but is being requested through an

authorization to use lapse salary. An alternative approach to funding is provided in the tax increment

budget enhancement scenarios, with an allocation of one-half of the estimated funds recommended in each

of the two scenarios.

A 2% adjustment to pay ranges is recommended to reflect rates of pay offered in the recruitment market

and by competing jurisdictions to ensure the Town can continue to attract and retain qualified and skilled

employees. This adjustment does not adjust existing employee salaries unless they fall below the adjusted

beginning pay range and will have a minimal budgetary impact.

Total funds requested to support the merit and market pay proposals and related payroll costs is

approximately $500,000 (total compensation).

Part-time pay plan rates were last adjusted for Fiscal Year 2017. No changes are recommended for Fiscal

Year 2020 but will be evaluated in relation to work done to evaluate pay plan and policy recommendations

for full-time employees. Part-time pay classifications and rates will be evaluated and streamlined as a part

of the new payroll system, part of the Munis ERP upgrade.

Other Employee Benefits

At its meeting in January 2019, the Local Government Employees Retirement System (LGERS) Board

amended its policy for employer contribution rates to LGERS. Effective July 1, 2019, the base employer

contribution rate with respect to law enforcement officers (LEOs) will increase from 8.50% to 9.70% of

reported compensation. With respect to all other employees, it will increase from 7.75% to 8.95% percent

3.4%

Average

Merit

6% Far

Exceeds

Expectations

4% Exceeds

Expectations

2% Meet

Expectations