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HomeMy WebLinkAboutItem 02 City Manager Compensation 2022 AGENDA ITEM SUMMARY Meeting Date: 12/12/2022 Meeting Type: Regular Meeting Staff Contact/Dept.: Chaim Hertz/HR Staff Phone No: 541-726-3787 Estimated Time: 30 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: CITY MANAGER COMPENSATION 2022 ACTION REQUESTED: Discuss City Manager compensation and ratify a wage increase. ISSUE STATEMENT: Nancy Newton’s employment contract requires HR to meet with City Council with the intent of submitting a recommendation regarding a salary or cost of living adjustment. ATTACHMENTS: 1. Salary Indexes for Comparison 2. City Manager Compensation Survey, Fall 2022 3. City Manager Compensation (Comparable Size) Survey, Fall 2022 DISCUSSION/ FINANCIAL IMPACT: According to Mrs. Newton’s contract, City Council shall give consideration to a wage adjustment on an annual basis. To assist Council in that consideration, included as an attachment is the average of four indexes to determine what, if any, amount of salary or cost of living adjustment to recommend to City Council (Attachment 1). The overall average of these indices is 5.13%. Though not required by contract, HR also reviewed the compensation of City Managers in similarly sized Oregon cities (Attachment 3) and those agencies with which we compete for employees (Attachment 2). This data gives us a benchmark to measure Mrs. Newton’s wage. According to the larger sample salary survey data, Mrs. Newton’s total compensation package is currently 9.84% below average after adjusting for cost of labor (geographic differential). When you look at the cities within 50% (+/-) of Springfield’s population size, Mrs. Newton’s compensation is 6.84% below or 3.26% when adjusted for the cost of labor index. Considering the index information and the comparable market data, Council should consider but is not limited to the following possible options regarding an adjustment to the City Managers compensation retroactively applied to the 7/1/22 pay period: 1. A market-based approach based on the average wage of comparable size communities with the cost of labor adjustment of 3.26% with a FY23 budget impact of $6,623 2. The average annual “index” approach with a 5.13% wage increase resulting in an FY23 budget impact of $10,422 3. A market-based approach based on the average wage of comparable sized communities without the cost of labor adjustment of 6.84% with a FY23 budget impact of $8,017 4. A market-based approach that includes the agency’s we compete with equaling a 9.84% wage increase with the cost of labor adjustment resulting in FY23 impact of $19,990 Base Salary Increases 2022 Actual Social Security Cost of Living Adjustment 2022 5.90% Public Administrators National Index 2022 4.70% Western Officers/Executives 2022 4.60% Oregon Officers/Executives 2022 5.30% Average: 5.13% Attachment 1 Page 1 of 1 City Population Served (July 2021 PSU Estimate) Annual Salary Deferred Comp Retirement/ PERS PICKUP Car Stipend (Annual) Other Cash Equivalents Total Annual Cash Compensation % From Average GEO/Cost of Labor Adj Comp % From Average Lane County 382,647 $226,265 $22,627 $13,576 $7,500 $840 $270,807.40 13.71% 1.00 $270,807 17.86% Eugene 175,626 $256,000 $15,000 $15,360 $5,980 $780 $293,120.00 23.08% 1.00 $291,654 26.93% Gresham 114,361 $213,200 $0 $12,792 $6,000 $0 $231,992.00 -2.59% 0.92 $213,665 -7.01% Hillsboro 108,154 $235,033 $13,800 $0 $5,700 $900 $255,433.00 7.25% 0.92 $235,509 2.50% Bend 102,059 $212,184 $18,000 $12,731 $6,000 $960 $249,875.00 4.92% 0.99 $246,627 7.34% Beaverton 97,318 $246,671 $0 $14,800 $6,000 $0 $267,471.26 12.31% 0.92 $246,074 7.09% Medford 87,353 $185,640 $5,569 $11,138 $6,000 $780 $209,127.60 -12.19% 1.00 $208,709 -9.17% *Springfield 62,352 $184,683 $7,387 $11,081 $3,480 $540 $207,171.30 -13.01%1.00 $207,171 -9.84% Corvallis 57,601 $209,364 $25,124 $12,562 NO $900 $247,949.52 4.11% 0.99 $244,478 6.40% Albany 57,199 $184,658 $6,463 $11,079 $3,600 $960 $206,760.51 -13.18% 0.99 $203,866 -11.27% Lake Oswego 40,801 $190,369 $9,518 $11,422 $6,000 $600 $217,909.55 -8.50% 0.92 $199,823 -13.03% Grants Pass 39,475 $174,930 $13,994 $10,496 $0 $0 $199,420.20 -16.27% 1.02 $203,608 -11.39% Oregon City 37,737 $176,484 $15,884 $10,589 $4,200 $900 $208,056.60 -12.64% 0.93 $192,452 -16.24% AVERAGE TOTAL COMPENSATION:$238,160 $229,773 Springfield 62,352 $184,683 $7,387 $11,081 $3,480 $540 $207,171.30 -13.01% 1.00 $207,171 -9.84% DIFFERENCE FROM AVERAGE -13.01% -9.84% * Not calculated into the "average" calculation City Manager/CEO Compensation Study - August 2022 By Total Compensation Attachment 2 Page 1 of 1 City Population Served (July 2021 PSU Estimate) Annual Salary Deferred Comp Retirement/ PERS PICKUP Car Stipend (Annual) Other Cash Equivalents Total Annual Cash Compensation % From Average GEO/Cost of Labor Adj Comp % From Average Beaverton 97,318 $246,671 $0 $14,800 $6,000 $0 $267,471.26 20.27% 0.92 $246,074 14.91% Medford 87,353 $185,640 $5,569 $11,138 $6,000 $780 $209,127.60 -5.96% 1.00 $208,709 -2.54% *Springfield 62,352 $184,683 $7,387 $11,081 $3,480 $540 $207,171.30 -6.84%1.00 $207,171 -3.26% Corvallis 57,601 $209,364 $25,124 $12,562 NO $900 $247,949.52 11.50% 0.99 $244,478 14.17% Albany 57,199 $184,658 $6,463 $11,079 $3,600 $960 $206,760.51 -7.03% 0.99 $203,866 -4.80% Lake Oswego 40,801 $190,369 $9,518 $11,422 $6,000 $600 $217,909.55 -2.01% 0.92 $199,823 -6.69% Grants Pass 39,475 $174,930 $13,994 $10,496 $0 $0 $199,420.20 -10.33% 1.02 $203,608 -4.92% Oregon City 37,737 $176,484 $15,884 $10,589 $4,200 $900 $208,056.60 -6.44% 0.93 $192,452 -10.13% $10,779 AVERAGE TOTAL COMPENSATION:$222,385 $214,144 Springfield 62,352 $184,683 $7,387 $11,081 $3,480 $540 $207,171.30 -6.84% 1.00 $207,171 -3.26% 46%DIFFERENCE FROM AVERAGE -6.84% -3.26% * Not calculated into the "average" calculation Attachment 3 Page 1 of 1