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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—JULY 8, 2024 6 and 14 employees were maxed out at this time. She reviewed the current pay grid along with two separate pay philosophies with the Council and discussed how each would impact the City. She commented further on several job classification changes that should be made. Mayor Grant questioned what the average population was to the benchmark communities. He anticipated the average was much higher than the population of Arden Hills. City Administrator Perrault reported some of the communities had a population larger than 10,000 and some were below 10,000. Mayor Grant commented on how the benchmarks were always shifting and moving based on where that City may be in their own compensation study. He asked why so many job classification changes were recommended. Ms. Melvin stated the last job description classification study was completed in 2014. She commented further on how jobs had changed and more was being expected of employees in the past 10 years, especially after COVID. City Administrator Perrault commented on how staff would be considering changes to the Public Works department. Councilmember Rousseau stated she was interested in the cut three/add three steps. She indicated it may be better to revisit the maintenance workers at a later date along with a discussion on the Public Works department. Councilmember Holden indicated she did not have enough information on this. She questioned how much the levy would have to be increased in year 2, year 3, and year after year. She stated she would like more information on the overall impacts. She explained at this time she would support Option 2. Ms. Melvin stated she could cost out the options for 2026, 2027 and the following years. Mayor Grant indicated there was not much of a difference from a financial perspective between Options 1 and 2. He explained at this time, he supported Option 2 and recommended pay increases be done on anniversary dates and not the first of the year. Councilmember Holden stated the 3% COLA may not be reality because inflation may be higher than 3%. Ms. Melvin commented this was the difference between COLA and a market adjustment. Councilmember Rousseau asked what the average cost was to replace an employee. Ms. Melvin estimated this to be $30,000 for training and the overlapping of duties. Councilmember Fabel stated he was in favor of Option 1. Mayor Grant indicated Option 2 puts the City at 5% above the market and Option 1 was 8% above the market.