HomeMy WebLinkAboutR-2020-053 Authorizing Payment of Annual Compensation Increases to All Employees at the Top End of Pay Range RESOLUTION NO. R-2020-053
A RESOLUTION AUTHORIZING PAYMENT OF ANNUAL COMPENSATION
INCREASES TO ALL EMPLOYEES AT THE TOP END OF THEIR CURRENT PAY
RANGE
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, AS
FOLLOWS:
THAT the Board of Aldermen authorizes the payment of the generally applicable, annual
compensation increases to all employees who, upon factoring in such increases, will exceed the
bounds of their current pay range; and
FURTHER THAT the Mayor, City Administrator, HR Manager, and all other
appropriate City officials are authorized to take such other actions and/or execute and deliver for
and on behalf of the City all certificates, instruments, agreements and other documents as may be
deemed necessary or convenient to carry out and comply with the intent of this Resolution; and
FURTHER THAT this Resolution will be effective from and after the date of its
1 approval.
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PASSED AND ADOPTED by the Board of Aldermen of the City of Riverside, Missouri,
the Z day of July 2020.
Katlifeen L. Rose, Milyor
ATTEST:
Robin Kincaid,.City Clerk
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CITY OF
RIVERS UQsveam fro
MEMORANDUM MISSOURI
7 m ordinary.
To: Mayor& Board of Aldermen
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I CC: Brian Koral, City Administrator & Nate Blum, Finance Director
From: Amy Strough, Human Resources Manager
Date: 7/1/20
Re: Employee Pay Adjustments
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After the adoption of the pay raises for the upcoming fiscal year, it was determined that 5 employees
will now have a base pay that exceeds the upper bounds of their pay range. According to policy, no
employee will be paid above the bounds of their pay range without Board of Aldermen approval.
Pay Ranges
All positions within the City will be properly analyzed, evaluated and classed into
corresponding pay range classifications. It is the policy of the City of Riverside to
establish compensation guidelines which incorporate midpoint pay for all pay ranges
at or above the local and regional market median for comparable or benchmarked
positions. Starting pay will generally be at or below midpoint level. No employees will
be paid below or above the bounds of their current pay range without Board of
Aldermen approval.
It is also the policy of the City to evaluate all pay ranges and compensation guidelines
in the context of like positions in the regional marketplace to ensure competitiveness
for hiring and attracting talent. All pay ranges and compensation guidelines will be
evaluated no less than every two (2) years to ensure all positions are classified
property and competitively.
Red Circled Rates
Pay rates of individual employees who have exceeded the pay range maximum will be
i "red circled" until such time as adjustments to the pay ranges are made so that the
employee's pay falls within the pay range. To be "red circled'means the employee is
"grandfathered" until the employee leaves the position (i.e. the pay plan does not
require the `red circled" employee's pay to be reduced to tart the maximum normally
allowed for the range). When an employee is"red circled,"their base pay rate is frozen,
but annual merit increases, if given, will be provided as supplemental pay and
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distributed quarterly.
The policy also states that the ranges should be evaluated every 2 years. Since the 2 year mark hit
at a time of administrative transition, this did not occur. We would like to evaluate the compensation
system over the course of this fiscal year and address all compensation issues with next year's budget
cycle. Issues to be addressed include: revision of the compensation philosophy, pay plan
s administration & maintenance, internal equity comparisons & placement adjustments, and revision of
procedures for topped out employees.
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We are seeking your approval to pay the 5 affected employees above the bounds of their current pay
range for this fiscal year only. We feel that it would be a much simpler administrative process than
utilizing the "Red Circled Rates" method for just one year. We are confident that an evaluation of the
compensation system will correct this issue next year.
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