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8.e Classification and Compensation StudySCANDIA
DATE: April 14, 2020
TO: Honorable Mayor and City Council Members
FROM: Ken Cammilleri, City Administrator
RE: 2019 Wage Study Implementation
The first iteration of the 2019 wage study was presented to the City back in April of 2019. At that
time there were three principal omissions that prevented the study's potential implementation. The
first issue was that Fire Chief Position was not included in the study. It is unclear why this was done
as City records indicate that as of July 1, 2018, this position was established as a regular part-time
position with 1,248 hours per year. The second issue centered on the evaluation of job duties and
responsibilities of the Deputy Clerk position. I completed an evaluation of the duties and
responsibilities of the deputy clerk over the last 5 years. My conclusions indicated that this position
was misclassified at a grade much lower than it should be placed at. Rather than a class of Deputy
Clerk, the position is most reflective of the duties and responsibilities of a City Clerk (a job
description has been included for your consideration). Last missing piece of information was the
calculated employer costs towards retirement, Medicare, and Medicaid, which in select cases were
significantly impactful on budgeted expenses. The calculations were completed on April 4 of 2020.
On February 28th of this year, I received updated information regarding the Fire Chief and City Clerk
positions.
Both the reevaluated job description indicated that the Deputy Clerk position should be re -classed to
City Clerk which will also include a significant change in grade. The new City Clerk class points at
342.5, or a Grade 12 on the pay plan previously recommended for the City in 2019 as part of the
study, which is a significant change in grade from 8 as the first version of the study suggested. With
approval of the job description change, this position will fall under FLSA Exempt status which will
shift from hourly to salary. This grade placement was also verified by our consultant against select
comparable wages available in the League of Minnesota Cities' (LMC) database for 2020.
The Fire Chief position after being evaluated received 593 points. This places the position at Grade
18 on the pay plan included in the study. The position will continue as FLSA Non -Exempt or at an
hourly rate. This grade placement was also verified by our consultant against select comparable
wages available in LMC's salary and compensation database for 2020.
As a result of updates to the wage and compensation study, the study's findings now indicate that
adjustments are likely needed for the following positions: Fire Chief, City Clerk (formerly Deputy
Clerk), and Public Works Director. The City's other position remain within 5% of the compensation
levels of the study and do not require the City to consider adjustments.
Implementation of this study would require the City Council to approve budget amendments
including a transfer from the City's General Capital Fund to cover the difference that was not
originally included within the 2020 operational budget. The following is breakdown of the options
and costs associated with implementation.
City of Scandia
14727 209th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us
Page 1 of 3
All of the following options include $6,100 which was omitted from the 2020 budget for the city's
share of retirement contributions to the Public Employee's Retirement Association (PERA) for the
Fire Chief Position. This cost has been included in the above figures as the City is still responsible to
make this contribution regardless of a change in compensation.
Option 1
Option 1 involves implementing the study results by adjusting employee wages which currently fall
below the minimum of the proposed range for their position to the minimum of the wage schedule
range. Or, more simply moving the affected employee's wage to the first step within their respective
grade. Implementation may be done retroactively to calendar year or the employee's anniversary
date that is currently being used on the existing step scale. This strictly includes adjustments for the
3 positions.
The cost of implementation at calendar year (or January 1St) for 2020 is $47,600 of which $45,200
would impact the General Fund 101 (and will require a transfer from the General Capital Fund
(401).) The impact on the enterprise fund will be $2,400 and will not require a budget amendment.
or
The cost of implementation at this year's anniversary date is $17,800 of which $17,700 would impact
the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $100 is the
anticipated impact on enterprise funds.
Option 2
Option 2 assumes the implementation of Option 1 and moves the 3 positions that are out of range
to their next closest step based on the relationship with their current wage.
The cost of implementation at calendar year (or January 1st) for 2020 is $45,900 of which $43,500
would impact the General Fund 101 (and will require a transfer from the General Capital Fund
(401).) The impact on the enterprise fund will be $2,400 and will not require a budget amendment.
or
The cost of implementation at this year's anniversary date is $17,900 of which $17,700 would impact
the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $200 is the
anticipated impact on enterprise funds.
City of Scandia
14727 2091h St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us
Page 2 of 3
Option 3
Option 3 assumes the implementation of options 1 and 2, but also places employees at their
corresponding years of service on the pay scale.
The cost of implementation at calendar year (or January 1st) for 2020 is $53,000 of which $49,000
would impact the General Fund 101 (and will require a transfer from the General Capital Fund
(401).) The impact on the enterprise fund will be $4,000.
or
The cost of implementation at this year's anniversary date is $19,600 of which $19,300 would impact
the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $300 is the
anticipated impact on enterprise funds.
Consideration of Approving Reclassification of Deputy Clerk to City Clerk
All of the options above have been calculated based on the reclassification of this position.
After a complete review of current and historical responsibilities of Deputy Clerk position, it is clear
that this position has evolved over time to essentially fulfill the City Clerk functions of the City over
multiple administrations of the City. Although the City Administrator retains this title, nearly all of
these functions have been fulfilled by the Deputy Clerk. The Administrator and our consultant
recommend the Council consider approval of the attached amended job description and the
reclassification of this position.
Should the Council opt to not proceed with the reclassification of this position, calculations are
prepared to implement each step by calendar year or anniversary date at the deputy clerk grade. If
this option is taken, the deputy clerk position should be at a grade that matches a public works
maintenance worker. This finding was also provided by the consultant. This would result in a grade
adjustment from 8 to 9.
Administrator's Recommendation
I recommend the Council implement Option 2 at anniversary date. I believe this is the best option
because it is most consistant with existing practice and has the least fiscal impact on this fiscal year.
City of Scandia
14727 209th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us
Page 3 of 3
Proposed 2020 Grade and Step Scales
Title !Anniversary
Date 1
Yrs of 1
Service
% of Year Adjusted @ 1 Current Pay 1
Ann Date Rate
i
Hours;
i
Cur Est. Sal 1 S
i
FTE 1
Points
Grade;
1;
2;
3;
Step @ Hourly
4; 5;
Rate
6;
7;
8;
9
Office Assistant - PT
19/17
i0.521
33.43
28.77%1
16.101
9801
15778.001
33488.001
127.5
41
16.651
17.231
17.841
18.461
19.111
19.781
20.471
21.181
21.93
Fire Chief 50179.82
Treasurer - PT
11/12
i8.001
66077.24
96.71%1
21.981
7501
16485.001
45718.401
170
61
18.891
19.551
20.231
20.941
21.671
22.431
23.211
24.031
24.87
0 T
Deputy Clerk
110/1
i6.001
404.42
24.93%1
24.421
20801
50793.601
50793.601
242.5
91
22.811
23.611
24.441
25.291
26.181
27.091
28.041
29.021
30.04
12.63
Maintenance Worker
1003.03
Fire Chief
1 50179.82
36004.80
i20801
0
i
i250
8505.48
91
22.811
23.611
24.441
25.291
26.181
27.091
28.041
29.021
30.04
1
City Clerk
i1
-Oct 1
-57.71
24.93%1
24.421
20801
50793.601
50793.601
342.5
121
27.561
28.521
29.521
30.551
31.621
32.731
33.871
35.061
36.29
-930.82
Director of Public Works
112/6
i4.001
-13.50
6.85%1
31.641
20801
65811.201
65811.201
540
171
37.751
39.081
40.441
41.861
43.321
44.841
46.411
48.031
49.72
Fire Chief
17/1
7.001
50.14%1
28.851
12481
36004.801
60008.001
593
181
40.211
41.621
43.071
44.581
46.141
47.751
49.431
51.161
52.95
Ci Administrator
110/1
0.481
24.93%1
43.271
20801
90000.001
90000.001
683
191
42.821
44.321
45.871
47.481
49.141
50.861
52.641
54.481
56.39
VvUr pomq
Diffrence to Est. Salary at step points
Title Min % Diff Mid % Dif Max % Diff
Office Assistant - PT 16317.22
-3.42%
18724.38
-18.67%
21486.66
-36.18%
Treasurer -PT 14163.82
14.08%
16253.31
1.41%
18651.05
-13.14%
Deputy 47449.47
6.58%
54449.36
0
62481.8
155.12
Maintenance Worker 47449.47
33.43
54449.36
11.63 9.62
62481.89
620.91
City Clerk 57316.57
-12.84%
65772.08
-29.49%
75474.98
-48.59%
Director of Public Works 78528.67
-19.32%
90113.45
-36.93%
103407.26
-57.13%
Fire Chief 50179.82
-39.37%
57582.50
-59.93%
66077.24
-83.52%
Citv Administrator 89069.181
1.03%1
102208.93
-13.57%
117287.10
-30.32
Option 1 Difference Move to Step 1 from Current Salary
Step Est
Title Ste(yrs-) Salary
Cur Est. Sala
% Dif Hold Yrs.
Imp.
Dif
Imp Dif @ anniversary day
Additional Costs
Calendar Year
PERA FICA
MEDFICA
Additional Costs
Anniversary Date
PERA FICA
MEDFICA
Total Comp
Calendar
Anv
Office Assistant - PT
1 16317.217
15778.00
-3.42%
0
539.22
155.12
40.44
33.43
7.82
11.63 9.62
2.25
620.91
178.62
Treasurer - PT
1 14163.823
16485.00
14.08%
5
-2321.18
-2244.86
20.91
4.89
24.46 20.22
4.73
388.26
375.50
Deputy Clerk
Deputy Clerk
7 58327.513
50793.60
-14.83%
3
7533.91
1878.32 (Pay equity adto
ad e) 565.04
467.10
109.24
140.87 116.46
27.24
8675.30
2162.88
City Clerk
1 57316.572
50793.60
-12.840/,
0 T
6522.97
1626.28
489.22
404.42
94.58
121.97 100.83
23.58
7511.20
1872.66
Director of Public Works
1 78528.67
65811.20
-19,32%
0
12717.47
871.06
953.81
788.48
184.40
65.33 54.01
12.63
14644.17
1003.03
Fire Chief
1 50179.82
36004.80
-39.37%
0
14175.02
7106.93
8505.48
878.85
205.54
7307.44 440.63
103.05
23764.89
14958.05
City Administrator
1 89069.181
90000.00
1.03%
1
-930.82
-232.07
-69.81
-57.71
-13.50
-17.41 -14.39
-3.36
-1071.84
-267.23
Option 2 Move to Next Closest Step
Title Ste s.
Cur Est. Salary
% Dif Hold Yrs.
Imp. Dif
Imp Dif @ acruversairy, day
Additional
Calendar Year
PERA
Costs
FICA
MEDFICA
Additional Costs
Anniversary Date
PERA FICA
MEDFICA
Total Comp
Calendar
Anv
Office Assistant - PT
1 16317.217
15778.00
-3.42%
539.22
155.12
40.44
33.43
7.82
11.63 9.62
2.25
620.91
178.62
Treasurer - PT
6 16822.178
16485.00
-2.05%
337.18
326.09
25.29
20.91
4.89
24.46 20.22
4.73
388.26
375.50
Deputy Clerk
7 58327.513
50793.60
-14.83%
7533.91
1878.32 (Pay equity ad' to ade)
565.04
467.10
109.24
140.87 116.46
27.24
8675.30
2162.88
City Clerk
1 57316.572
50793.60
-12.840/,
6522.97
1626.28
489.22
404.42
94.58
121.97 100.83
23.58
7511.20
1872.66
Director of Public Works
1 78528.67
65811.20
9.87%
12717.47
871.06
953.81
788.48
184.40
65.33 54.01
12.63
14644.17
1003.03
Fire Chief
1 50179.82
36004.80
-39.37%
14175.02
7106.93
8505.48
878.85
205.54
7307.44 440.63
103.05
23764.89
14958.05
Ci Administrator
1 89069.181
90000.00
1.03%
-930.82
-232.07
-69.81
-57.71
-13.50
-17.41 -14.39
-3.36
-1071.84
-267.23
Option 3 Difference to current
wage at anniversary step
Additional
Costs
Additional Costs
Total Comp
Step Est
Calendar Year
Anniversary Date
Title
Ste s. Salary
Cur Est. Sal
% Dif Hold Yrs.
Imp. Dif.
Imp Dif @ anniversary day
PERA
FICA
MEDFICA
PERA FICA
MEDFICA
Calendar
Anv
Office Assistant - PT
1 16317.217
15778.00
3.30%
539.22
155.12
40.44
33.43
7.82
11.63 9.62
2.25
620.91
178.62
Treasurer - PT
8 18020.337
16485.00
8.52%
1535.34
1484.86
115.15
95.19
22.26
111.36 92.06
21.53
1767.94
1709.82
Deputy Clerk
6 56355.085
50793.60
9.87%
5561.49
1386.56 (Pay equity adj to grade)
417.11
344.81
80.64
103.99 85.97
20.11
6404.05
1596.63
City Clerk
111w r 57M.572
50793.6
0
6522.97
1626.28
489.22
404.42
94.58
121.97 100.83
23.58
7511.20
1872.66
Director of Public Works
4 87066.137
65811.20
24.41%
21254.94
1455.82
1594.12
1317.81
308.20
109.19 90.26
21.11
24475.06
1676.37
Fire Chief
2 51936.113
36004.80
30.67%
15931.31
7987.48
3895.21
987.74
231.00
7432.57 495.22
115.82
21045.27
16031.10
City Administrator
1 89069.181
90000.00
-1.05%
-930.82
-232.07
-69.81
-57.71
-13.50
-17.41 -14.39
-3.36
-1071.84
-267.23
Employer Contribution Rates
Allocation %
PERA GENERAL. 7.50%
Dr. Clerk City Clerk PWD
Fire Chief
PERA Pub Safety. 16.95%
101-41000
100.0% 100.0%
FICA 6.20%
101-42200
100%
MEDFICA 1.45%
101-43000
83.50%
602-43210
12.50%
612-43210
4.00%
Fire Chief Salary before/after adversary 7/1
Opt 1 Opt 2 Opt 3
Before
17953.0784 17953.07836 17953.07836
After
25158.6497 25158.64967 25896.91137
Total
43111.728 43111.72803 43849.98973
PWD Allocation wage
Opt 1 Cal Opt 1 Anv Opt2 Cal
Opt 2 Anv
Opt3 Cal
Opt3 Anv
83.50%
10619.09 727.33 10619.09
727.33
17747.87
1215.61
12.50%
1589.68 108.88 1589.68
108.88
2656.87
181.98
4.00%
508.70 34.84 508.70
34.84
850.20
58.23
PWD Allocation PERA
Opt 1 Cal Opt 1 Anv Opt2 Cal
Opt 2 Anv
Opt3 Cal
Opt3 Anv
83.50%
796.43 54.55 796.43
54.55
1331.09
91.17
12.50%
119.23 8.17 119.23
8.17
199.27
13.65
4.00%
38.15 2.61 38.15
2.61
63.76
4.37
PWD Allocation FICA
Opt 1 Cal Opt 1 Anv Opt2 Cal
Opt 2 Anv
Opt3 Cal
Opt3 Anv
83.50%
658.38 45.09 658.38
45.09
1100.37
75.37
12.50%
98.56 6.75 98.56
6.75
164.73
11.28
4.00%
31.54 2.16 31.54
2.16
52.71
3.61
PWD Allocation MEDFICA
Opt 1 Cal Opt 1 Anv Opt2 Cal
Opt 2 Anv
Opt3 Cal
Opt3 Anv
83.50%
153.98 10.55 153.98
10.55
257.34
17.63
12.50%
23.05 1.58 23.05
1.58
38.52
2.64
4.00%
7.38 0.51 7.38
0.51
12.33
0.84
2020 Budget Amendments w/ new City Clerk Classification
2020
Option 1 - Move to Minimum Ste 1
Current
DIF
Added to Bud
% change DIF
Added to Bud
% change
Type
Dept.
Fun
Dept.
Item
Account
Description
Budget
Opt 1 Cal
Opt 1 Cal
Budget Entry
in budget Opt 1 Am,
Opt 1 Am,
Budget Entry
in budget
R
General Fund
101
41000
39200
101-41000-39200
Interfund Operating Transfer
0
45,204
45,200
45,200
100.0% 17,668
17,700
17,700
100.0%
E
Capital Fund
401
41000
720
101-41000-720
Transfer Out
45,204
45,200
45,200
100.0% 17,668
17,700
17,700
100.0%
E
admin
101
41000
101
101-41000-101
Regular Wages & Salaries
162,400
6,523
6,500
168,900
3.8%
1,626
1,600
164,000
1.0%
E
admin
101
41000
121
101-41000-121
PERA Coord. Employer Contribu.
12,000
489
500
12,500
4.0%
122
100
12,100
0.8%
E
admin
101
41000
122
101-41000-122
FICA Employer Contribution
10,100
404
400
10,500
3.8%
101
100
10,200
1.0%
E
admin
101
41000
126
101-41000-126
MEDICARE Employer Contribution
2,400
95
100
2,500
4.0%
24
0
2,400
0.0%
E
Fire
101
42200
101
101-42200-101
Regular Wages & Salaries
110,000
14,175
14,200
124,200
11.4%
7,107
7,100
117,100
6.1%
E
Fire
101
42200
121
101-42200-121
PERA Coord. Employer Contribu.
0
8,505
8,500
8,500
100.0%
7,307
7,300
7,300
100.0%
E
Fire
101
42200
122
101-42200-122
FICA Employer Contribution
7,300
879
900
8,200
11.0%
441
400
7,700
5.2%
E
Fire
101
42200
126
101-42200-126
MEDICARE Employer Contribution
1,700
1,906
1,900
3,600
52.8%
103
100
1,800
5.6%
E
DPW
101
43000
101
101-43000-101
Regular Wages & Salaries
186,100
10,619
10,600
196,700
5.4%
727
700
186,800
0.4%
E
DPW
101
43000
121
101-43000-121
PERA Coord. Employer Contribu.
2,600
796
800
3,400
23.5%
55
100
2,700
3.7%
E
DPW
101
43000
122
101-43000-122
FICA Employer Contribution
14,600
658
700
15,300
4.6%
45
0
14,600
0.0%
E
DPW
101
43000
126
101-43000-126
MEDICARE Employer Contribution
2,800
154
200
3,000
6.7%
11
0
2,800
0.0%
E
Anderson/Eric
602
43210
101
602-43210-101
Regular Wages & Salaries
20,100
1,590
1,600
21,700
7.4%
109
100
20,200
0.5%
E
Anderson/Eric
602
43210
121
602-43210-121
PERA Coord. Employer Contribu.
1,600
119
100
1,700
5.9%
8
0
1,600
0.0%
E
Anderson/Eric
602
43210
122
602-43210-122
FICA Employer Contribution
1,300
99
100
1,400
7.1%
7
0
1,300
0.0%
E
Anderson/Eric
602
43210
126
602-43210-126
MEDICARE Employer Contribution
400
23
0
400
0.0%
2
0
400
0.0%
E
Uptown
612
43210
101
612-43210-101
Regular Wages & Salaries
7,400
509
500
7,900
6.3%
35
0
7,400
0.0%
E
Uptown
612
43210
121
612-43210-121
PERA Coord. Employer Contribu.
550
38
0
550
0.0%
3
0
550
0.0%
E
Uptown
612
43210
122
612-43210-122
FICA Employer Contribution
300
32
0
300
0.0%
2
0
300
0.0%
E
Uptown
612
43210
126
612-43210-126
MEDICARE Employer Contribution
100
7
0
100
0.0%
1
0
100
0.0%
TOTAL COST INCREASE (DIFF) 543,750 47,620 47,600 17,834 17,600
TOTAL GENERAL FUND COST (DIFF 512,000 45,204 45,300 17,668 17,500
TOTAL ENTERPRISE FUNDS COST (I 31,750 2,416 2,300 165 100
Option 2 Move to Next Closest Step
Option 3 - Move to Step Ac ounting for Years of Service
DIF
Added to Bud % change
DIF
BUD TOTAL
% change
DIF
Added to bud
% change
DIF
Added to Bud
% change
Opt 2 Cal
Opt 2 Cal Budget Entry in budget
Opt 2 Anv
Opt 2 Anv
Budget Entry
in budget
Opt 3 Cal
Opt 3 Cal Budget Entry
in budget
Opt 3 Anv
Opt 3 Anv I Budget Entry
in budget
43,504
43,500 43,500 100.0%
17,668
17,700
17,700
100.0%
48,993
49,000 49,000
100.0%
19,319
19,300 19,300
100.0%
43,504
43,500 43,500 100.0%
17,668
17,700
17,700
100.0%
48,993
49,000 49,000
100.0%
19,319
19,300 19,300
100.0%
6,523
6,500
168,900
3.8%
1,626
1,600
164,000
1.01
6,523
6,500
168,900
3.8%
1,626
1,600
164,000
1.0%
489
500
12,500
4.0%
122
100
12,100
0.8%
489
500
12,500
4.0%
122
100
12,100
0.8%
404
400
10,500
3.8%
101
100
10,200
1.0%
404
400
10,500
3.8%
101
100
10,200
1.0%
95
100
2,500
4.0%
24
0
2,400
0.0%
95
100
2,500
4.0%
24
0
2,400
0.0%
14,175
14,200
124,200
11.4%
7,107
7,100
117,100
6.1%
15,931
15,900
125,900
12.6%
7,987
8,000
118,000
6.8%
8,505
8,500
8,500
100.0%
7,307
7,300
7,300
100.0%
3,895
3,900
3,900
100.0%
7,433
7,400
7,400
100.0%
879
900
8,200
11.0%
441
400
7,700
5.2%
988
1,000
8,300
12.0%
495
500
7,800
6.4%
206
200
1,900
10.5%
103
100
1,800
5.6%
231
200
1,900
10.5%
116
100
1,800
5.6%
10,619
10,600
196,700
5.4%
727
700
186,800
0.4%
17,748
17,700
203,800
8.7%
1,216
1,200
187,300
0.6%
796
800
3,400
23.5%
55
100
2,700
3.7%
1,331
1,300
3,900
33.3%
91
100
2,700
3.7%
658
700
15,300
4.6%
45
0
14,600
0.0%
1,100
1,100
15,700
7.0%
91
100
14,700
0.7%
154
200
3,000
6.7%
11
0
2,800
0.0%
257
300
3,100
9.7%
18
0
2,800
0.0%
1,590
1,600
21,700
7.4%
109
100
20,200
0.5%
2,657
2,700
22,800
11.8%
182
200
20,300
1.0%
119
100
1,700
5.9%
8
0
1,600
0.0%
199
200
1,800
11.1%
14
0
1,600
0.0%
99
100
1,400
7.1%
7
0
1,300
0.0%
165
200
1,500
13.3%
11
0
1,300
0.0%
23
0
400
0.0%
2
0
400
0.0%
39
0
400
0.0%
3
0
400
0.0%
509
500
7,900
6.3%
35
0
7,400
0.0%
850
900
8,300
10.8%
58
100
7,500
1.3%
38
0
550
0.0%
38
0
550
0.0%
64
100
650
15.4%
4
0
550
0.0%
32
0
300
0.0%
2
0
300
0.0%
53
100
400
25.0%
4
0
300
0.0%
7
0
100
0.0%
1
0
100
0.00/
12
0
100
0.0%
1
0
100
0.0%
45,920 45,900 17,869 17,600 53,032 53,100 19,596 19,500
43,504 43,600 17,668 17,500 48,993 48,900 19,319 19,200
2,416 2,300 201 100 4,038 4,200 277 300