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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 12, 2024 4 She said we can start people anywhere on the scale. We can give additional bumps if someone is exceptional. Councilmember Fabel sought confirmation that a new hire can be started anywhere on the scale, as appropriate, and that the City is at liberty to increase a person by more than one step for particular merit. Councilmember Monson thought we are using a lot of tools to try to retain people and we should continue to use them. She believes the question is what can be set as a policy? Market adjustment has to be done. People get a pay raise because there was a market adjustment. That doesn't forego their opportunity to receive the cost of living adjustment. She thought that was not one or the other, they are often hand in hand. She believes we are below market and have to catch up. She likes Option 1 because over half of the employees are maxed out and she would like to give them a runway. She also believes a policy should be in place that this grid is looked at every three years so there wouldn't be the need for the large increases. She thinks that we need to at least meet market but she would prefer to be above market. Councilmember Rousseau is interested in Option 1 but recognizes there may be some wiggle room in Option 2. Based on staff comments regarding recruiting/retention and knowing how competitive the market is, she would prefer to be able to compete with other cities, regardless of size. Councilmember Fabel would like to lean back against the thought that an employee ought to be paid more or less depending on size. He thinks the work that people do for this city is equally important, if not more, to the work done at larger cities. He likes the idea of us being above average. Mayor Grant stated that initially he favored Option 2. He said that it was established that we want to be about 4% or 5% above market. He is not concerned about the dollar amount difference between Option 1 and Option 2. He doesn't think we need to be a full 8% above market minimums and maximums but some progress needs to be made to be competitive. He reminded it is always at the Council's purgative to give an extra step and to hire at an advanced step if appropriate. He thinks maintaining at about 4% above average minimum and 5% above average maximum is appropriate. He favors Option 2. Councilmember Holden corrected that she didn't say anyone was less important because they didn't work in a big city. Big cities have a lot larger tax base and are able to pay their workers more money for doing the same job. She referred to Councilmember Monson's comment regarding we should have a policy to review this topic every three years. Councilmember Holden said there is a policy, because the state law requires it. She prefers Option 2 but would like to include a 5% cost of living increase this year which would equate to an 8-10% raise vs. 6%. Councilmember Monson stated the state law requires the internal pay equity study. Tessia Melvin confirmed the pay equity is required by state law. She said pay equity doesn't care about market competitiveness it only cares about the jobs and the classifications. A market review can be done whenever.