HomeMy WebLinkAboutResolution 2022 (12) Resolution No. 12 (2022)
ST RO UNTY RESOLUTION AMENDING WAGE GRID
COVER MEMO
TO: County Board of Supervisors
FROM: Ken Witt, County Administrator
DATE: March 1, 2022
AGENDA ITEM: Resolution Amending Wage Grid
BACKGROUND INFORMATION
Recommendation of amending the wage with a 1% COLA adjustment effective April 3, 2022. The
CPI for 2021 was 7%. The average increase for employees with a step, no COLA, was 2% in the
2022 budget. Adjusting the wage grid mid-year creates a structural deficit for the following year.
Every 1% increase in employee compensation costs about $300,000 per year.
Funding for the remainder of 2022 can be justified by allocating the unused 2021 and the
budgeted 2022 contingency funds of $100,000 per year.
While a 1% COLA and an average 2% step increase for 2022 is still short of the 7% CPI, it
helps close the gap. Remaining fiscally conservative now will allow for the structural deficit
to be absorbed in the 2023 budget process. A more aggressive increase could put
programming and personnel at risk of needing to be cut to accommodate a larger structural
deficit. I would like to revisit employee compensation for 2023 as a priority budget item
after addressing the structural deficit.
COLA adjustments to the wage grid help maintain the competitiveness of the County
compensation program for current employees and future hires.
Resolution No. 12 (2022)
ST RO LINTY RESOLUTION AMENDING WAGE GRID
1 WHEREAS, St. Croix County implemented the McGrath Compensation Grid effective
2 January 1, 2016 with periodic amendments; and
3
4 WHEREAS, the Cost Price Index (CPI)for 2021 was 7%; and
5
6 WHEREAS, the 2022 budget was developed over the summer of 2021 before the CPI
7 started to increase sharply and when it was thought to only be transitionary; and
8
9 WHEREAS, the initial assumption that the CPI increase was transitionary has now been
10 changed to a permanent expectation in the change in the price of goods and services; and
11
12 WHEREAS, only a step increase, averaging 2%, was budgeted for St. Croix County
13 employees with no COLA adjustment to the wage grid; and
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15 WHEREAS, the St. Croix County Board acknowledges that adjusting the wage grid mid-
16 year outside the normal budget process will create a structural deficit for the following year; and
17
18 WHEREAS, a 1% COLA increase to the wage grid costs approximately $300,000
19 annually; and
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21 WHEREAS, the St. Croix County Board is desirous about adjusting the wage grid to
22 help offset the increases in the cost of living for St. Croix County employees.
23
24 NOW, THEREFORE, BE IT RESOLVED that the St. Croix County Board of
25 Supervisors does hereby authorize the updated Wage Grid effective April 3, 2022, reflecting a
26 1% COLA adjustment to the wage grid.
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: Increasing the wage grid by 1%will cost approximately $200,000 in 2022.
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02/15/22 Administration Committee RECOMMENDED
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RESULT: RECOMMENDED [UNANIMOUS]
MOVER: David Peterson, Supervisor
SECONDER: Bob Long, Chair
AYES: Long, Koch, Ard, Peterson, Peavey
Vote Confirmation.
Tob Lang Administ,at,idn,Chair i r 2/16/2022
St. Croix County Board of Supervisors Action:
Roll Call -Vote Requirement—Two-thirds Majority of Entire Membership (13)
RESULT: ADOPTED [UNANIMOUS]
MOVER: Daniel Hansen, Supervisor
SECONDER: Scott Counter, Supervisor
AYES: Schachtner, Anderson, Long, Leaf, Koch, Hall, Berning, Ottino, Feidler, Ostness,
Counter, Hansen, Ard, Tellijohn, Peterson, Anderson, Achterhof, Peavey
ABSENT: District 18 Vacant
This Resolution was Adopted by the St. Croix County Board of Supervisors on March 1, 2022
Cindy Campbell, County Clerk