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FUTURE ADMINISTRATION OF THE <br />COMPENSATION PLAN <br />Vq"ockpvckp"eqorgvkvkxg"ucnct{"ngxgnu."vjgtg"ujqwnf"dg"cp"cppwcn"tgxkgy"qh"vjg"Ekv{Ҁu"ucnct{" <br />ranges. The communitiesused in the survey group for this Study have been determined to be <br />comparable to the City. Therefore, Centervillecan continue to use these communitiesas a <br />comparable marketsurvey group for annual salary comparison purposes until it is determined <br />vjcv"vjg{"ujqwnf"dg"tggxcnwcvgf0"Kv"ku"OIVҀu"tgeqoogpfcvkqp"vjcv"cp"cppwcn"uwtxg{"qh"vjgug" <br />communitiesbe conducted to determine the percentage increase each communityin the <br />comparable group is granting, either as an annual across-the-board increase to their employees <br />or as a general adjustment to their compensation ranges. <br />It is the further recommendation of MGT that the compensation ranges for each grade be <br />increased by the average percentage increase of the comparable group, even if an across-the- <br />board increase is not given to all employees. Employees would continue to advance through the <br />compensation ranges (provided that the employee is not at the maximum of the compensation <br />range) by virtue of an increase granted for satisfactory or above-satisfactory performance of <br />their job duties. <br />Cost of Living Adjustments (COLA) <br />In addition to annual market comparisons, Cost of Living Adjustments (COLAs) are a widely <br />accepted compensation practice used to address inflationary impacts and maintain competitive <br />salary structures.COLAs are often tied to the Consumer Price Index (CPI), which measures <br />changes in the cost of goods and services over time. Failure to periodically address inflationary <br />pressures can cause employee compensation to fall behind market conditions relatively quickly, <br />particularly during periods of higher inflation. Over time, this may create challenges with <br />tgetwkvogpv."tgvgpvkqp."gornq{gg"oqtcng."cpf"vjg"Ekv{Ҁu"cdknkv{"vq"tgockp"eqorgvkvkxg"ykvj" <br />neighboring communities. <br />As part of this study, MGT collected fiscal year 2026, 2027, and 2028 Cost of Living Adjustment <br />(COLA) data from the comparable communities included in the survey group.The table below <br />summarizes the data collected. This information further supports the importance of regularly <br />reviewing and adjusting compensation structures as a best practice to maintain competitive <br />pay levels and address ongoing inflationary impacts. <br />MunicipalityFY 2026 COLAFY 2027 COLAFY 2028 COLA <br />3.75%TBDTBD <br />City of Chisago City <br />3.5%3.5%3.5% <br />City of Afton <br />3%TBDTBD <br />City of Circle Pines <br />3%3%TBD <br />City of Columbus <br />3%TBDTBD <br />City of Falcon Heights <br />3%TBDTBD <br />City of Hugo <br />3.50%3%3% <br />City of Isanti <br />3%3.50%TBD <br />City of Lexington <br />3%3%3% <br />City of Lino Lakes <br />3.25%TBDTBD <br />City of Newport <br />4%TBDTBD <br />City of Nowthen <br />3%3%3% <br />City of Scandia <br />4%4%n/a <br />City of Spring Lake Park <br />City of Centerville, MN| May 2026 <br />13 <br />CLASSIFICATION, COMPENSATION, AND PAY EQUITY <br />19 <br />REPORT <br /> <br />