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CONSENT ITEM - 8C <br />-ADEN HILLS <br />MEMORANDUM <br />DATE: January 12, 2026 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br />FROM: Joua Yang, Finance Director <br />SUBJECT: Pay Equity Report - 2026 <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />Motion(s) to approve, table, or deny the following: <br />• Arden Hills Pay Equity report due January 31, 2026 <br />Background <br />The Local Government Pay Equity Act, M.S. 471.991-471.999, and Minnesota Rules, Chapter <br />3920, require local government jurisdictions to submit a pay equity report to the State of Minnesota <br />every three years. This includes filing a compensation compliance report with the Minnesota <br />Management and Budget Office (MMB). The Pay Equity Act was designed to ensure that local <br />government jurisdictions do not compensate female job classes consistently below male job classes <br />of comparable work value. Arden Hills last submitted a report in January 2023, which was for <br />salary data as of December 31, 2022. <br />Discussion <br />Using the State of Minnesota's compensation software and the City's payroll data, the City utilized <br />David Drown & Associates (DDA) to calculate the compliance report based on salary data as of <br />December 31, 2025. This service is included as part of their Ongoing Maintenance of the Job <br />Classification and Compensation agreement with the City. The results indicate that the City is <br />currently in compliance with the Local Government Pay Equity Act (Attachment Q. <br />By approving the report, the Council is ensuring that the report has been filed with MMB and that <br />a copy has been provided to each exclusive bargaining unit representative. It is available to anyone <br />by request. <br />Budget Impact <br />None <br />Page 1 of 2 <br />