No movement of positions to higher or lower pay grades are reflected in the proposed 2022 pay scale.

The pay scale was developed in 2017 in its current form.  It employs a standard distance between mid points of the pay levels and a standard range to establish a minimum and maximum pay for each level.  This is a basic structure employed by professionally developed pay scales.

Each year we review the pay scale, in concert with the budget development process.  In 2019 we employed Gallagher to complete a job duties and compensation analysis which resulted in a two year plan implementing significant movement of positions to higher pay grades, this was completed in 2021. Gallagher used Johnson County cities of similar size as their market comparison for a more specific comparison.

As in prior years the midpoint for each pay grade has been adjusted for inflation, for 2022 a $.55/hr. increase to the midpoint has been applied.  This annual adjustment is based upon two relevant indexes (Employment Cost Index- Wages Only and the Consumer Price Index).  This same approach has been employed since 2017.  Figure #1 attached reflects a three year weighted average of these two indexes (ranging from 2.14% to 1.26%).  Figure #2 applies these percentages to the average midpoint of the pay scale, resulting in a range of $.72 to $.42 per hour as a reasonable adjustment to the pay scale midpoints.  The average of this range is $.57/hr. therefore the proposed $.55 per hour adjustment is on target. Merit increases will be applied prior to the new pay scale taking affect, no adjustments in pay to bring an employee's wage up to the new minimum for their position are anticipated to be necessary and therefore the proposed 2022 pay scale has no fiscal impact on the 2022 budget.

The proposed 2022 pay scale maintains the City's "average" position in the market.