ALAMOSA — During their Wednesday night meeting, members of Alamosa’s city council gave unanimous approval on first reading to Ordinance 25-2024, an ordinance “amending the established pay plan city officer and employees”. If passed on second reading, the ordinance will raise employee pay in 2025 by 4.2% for cost of living adjustment (COLA) with a potential additional 0% to 4% performance pay raise for those who are performing notably well in their positions.
As described in the communication to councilors prior to Wednesday night’s meeting, while the Council reserves the right to amend this ordinance, the ordinance directs the City Manager to fix salaries within these ranges. Without formal council approval, the City Manager does not have the authority to pay someone outside the established pay range.
Since completing a 2021 salary study that showed the city was falling behind other similar municipalities in its compensation package, the city’s philosophy is now two-fold.
The first part involves continuing to do a merit increase for select employees based on a pay-for-performance annual evaluation. Traditionally, as budget allows, the merit increase is up to 4% and has averaged out to a 3% budget impact. Last year, the budget allowed for a 4% merit with an estimated 3% budget impact.
The second part of the compensation philosophy is to make a concentrated effort to keep the city’s pay grades aligned with the market value by adjusting all pay grades with a cost of living adjustment (COLA). This COLA is based on a five-year average of the consumer price index (CPI). This year that average is 4.2% for a COLA. Last year the five-year average of the CPI for a COLA was 4% and the budget allowed for a 4% COLA.
With progressively larger year-after-year minimum wage increases already planned by the state through the end of the decade and municipalities typically experiencing the lowest retention rates compared to the private sector, city staff feels that it is important to continue to follow the compensation philosophy - when the budget allows - so as not to fall behind. This philosophy helps support their recruitment and retention efforts by staying competitive with the market.
The overall budget impact of the proposed pay raise and associated performance pay raise is approximately 7.2%.
In its conclusion to council members, the communication (written by city staff) read: The City recognizes the value of its employees and the importance to stay consistent with our compensation philosophy and pay employees as close to market value as budget allows. Approving the attached ordinance on first reading allows the city to follow the compensation philosophy and stay competitive within the market for recruitment and retention.
A second reading of the ordinance, allowing public comment, is on the agenda for the October 16 meeting.
