Laserfiche WebLink
time of implementation, it was expected that the entire compensation plan including the merit <br />32 <br />pay component would be fully funded over the years to reward top performers based on their <br />33 <br />achievements. The 97% pay plan component has now slipped to closer to 95% and the merit pay <br />34 <br />program has never been appropriately funded to reward achievements of those that excel. <br />35 <br />Staff has included Mayor Roe’s draft Compensation Policy discussed at the August 19 City <br />36 <br />Council meeting as Attachment B for your information and consideration. <br />37 <br />38 <br />Alternative Benchmark for Wage Adjustment <br />39 <br />40 <br />Staff has explored an alternative method to make wage adjustments that will put employees more <br />41 <br />in line with the external market and to help the City Council compare and contrast different <br />42 <br />methods to provide external competitiveness. One approach would be to use the Consumer <br />43 <br />Price Index (CPI) which is a measure of the average change over time in the prices paid by urban <br />44 <br />consumers for a market basket of consumer goods and services. This could be used to implement <br />45 <br />wage adjustments since it measures a person’s ability to continue to purchase goods and <br />46 <br />services used in their daily lives. The basic assumption with the CPI however, is that <br />47 <br />marketplace pay is occurring and you only need review inflationary competitiveness. This is not <br />48 <br />the case with the City of Roseville as determined by the compensation study of the true <br />49 <br />marketplace. It should also be noted that the City has not previously used the CPI as a measure <br />50 <br />of external market competitiveness. <br />51 <br />52 <br />The chart below reflects the City of Roseville’s cumulative COLA granted as compared to the <br />53 <br />CPI over the last 10 years. This not only gives some comparison between the two, it also <br />54 <br />provides some historical review since Roseville’s last compensation review in 2001-2002. The <br />55 <br />CPI is based on the Bureau of Labor Statistics for the Twin Cities region. <br />56 <br />57 <br />10-Year Cumulative CPI vs. COLA (non-union) <br />58 <br />59 <br />60 <br />61 <br />Page 2 of 4 <br /> <br />