2026-05-14 WS & City Council Packet

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Each grade includes nine (9) steps with a 3.34% increasebetween steps, resulting in a total range spread of 30% from minimum to maximum. Although the current compensation plan utilizes a numerical structure, the numbers used in the proposed pay plan are part of a newly developed framework and do not correspond to or align with the existing system. As such, the assignment of positions withinthis new structure should not be interpreted as a demotion or promotion for any employee. In establishing the proposed structure, employees were placed within the new salary ranges at the step that matches their current pay, or, if no step exactly aligns, at the next higher step. This ensures that no employee experiences a reduction in pay while transitioning to the updated structure. The approach maintains internal consistency, preserves existing pay relationships, and provides a clear opportunity for future salary growth within the range. For positions without market data, salary ranges are developed using internal job evaluation results and the overall structure of the compensation plan. The spacing between these grades is designed to maintain logical progression and equity across the structure, ensuring meaningful differentiation between roles while supporting consistent internal alignment. In a limited instance, the proposed range maximum falls below the current grade maximum. This reflects alignment with updated market data. Consistent with the approach outlined above, no reductions in pay are made as part of the transition to the new structure. th Table 1 combines all of the classification and compensation data at the 60percentile. Implementation and Administration of the Compensation Plan Implementation of the Compensation Plan, as it affects individual employees, should be under the following pattern of adjustments: 1)Employees whose present compensation is below the minimum compensation of the range for their classification should be raised to the minimum of the range. 2)The compensation of employees whose current compensation falls within the new range should be slotted into the new Compensation Plan on the closest step at or above their current compensation. 3)The compensation of employees whose present compensation is above the maximum compensation of the range should be held at their present rate, without a reduction in compensation, until such time that further market analysis indicates commensurate alignmentwith the marketplace. However, the Citycan considera lump sum payment equivalent to a COLAthat other employees receive,for these employees, which does not impact base compensation levels, until the ranges adjust to include the individual employee compensation rates. City of Centerville, MN| May 2026 11 CLASSIFICATION, COMPENSATION, AND PAY EQUITY 17 REPORT