SUBJECT
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An Ordinance of the City Of Laredo, Texas, amending the pay structure for department Directors and above by transitioning from the current wage scale (R43-R47) to a new structure (217-221) based on the Segal Study recommendations, excluding certain employee categories, and providing for severability, publication and an effective date.
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PREVIOUS COUNCIL ACTION
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BACKGROUND
The City of Laredo recognized the critical need to conduct a comprehensive compensation and classification study, as it had been more than 30 years since such an analysis was last performed. This prolonged gap has created a significant challenge in ensuring that the City's pay program remains fair, equitable, and competitive. As a first step, the City initiated Phase One of the study, focusing on all employees below the director-level status. This phase aimed to establish a foundational understanding of current compensation practices for the majority of the workforce, ensuring alignment with market standards and internal equity, first phase was implemented February 5, 2023.
Phase II of the study concentrated on those positions classified as department director and above that amends; Chapter 2, Article II, Division 6 (Pay Administration), of the City of Laredo Code of Ordinances, specifically Section 2.87.7 Policy (C)(8) a and b; by adopting and amending the wage schedule for those employees classified as department directors and above; excluding: contract employees, interns, cooperative education program employees (CO-OPS), elected officials, temporary contract labor employees, firefighter and police officers governed by the terms of a collective bargaining agreement; The pay grades will transition from the current wage scale of (R43, R44, R45, R46 and R47) to the new structure (217, 218, 219, 220, 221) as recommended by the findings of the Segal Study. Additionally, each grade has a range spread of 60% to 65% from minimum to maximum annual salary. There is a midpoint differential between each grade of approximately 10%. The new pay grade schedule has a minimum annual salary of $121,472 and a maximum annual salary of $287,911.
The study is essential to address the evolving dynamics of the labor market and align the City’s pay practices with both public and private employers in the surrounding geographic area from which it recruits talent. By undertaking this initiative, the City seeks to develop a compensation structure that reflects modern labor market trends, fosters employee satisfaction and retention, and strengthens its ability to attract skilled professionals in an increasingly competitive environment. This phased approach ensures that the City can methodically address compensation challenges across all levels of its workforce while prioritizing fairness and equity.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends approval of item as presented.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: N/A
Source of Funds: N/A
Account #: N/A
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Based on recommendations made by Segal, the salary costs will be available from each department through the FY2024-25, which would include general fund, enterprise fund and/or grant funding sources.