MEMORANDUM

TO: Ronald Wm. Drathman, Assembly President

        Assembly Members

FROM: Mike Navarre, Mayor

DATE: May 4, 1999

SUBJECT: Policy for Administrative Employee Salary System

In response to the concerns expressed at the April 6, 1999 Assembly Meeting regarding the proposed salary system for administrative employees, I have developed the attached policy which will be in place during my tenure as mayor. This policy will provide me with some flexibility in compensating my staff while limiting the total amount used for salary increases. This should address the concerns regarding runaway salaries or huge increases resulting in salaries being maxed out quickly.

The percentage and amount available for pay increases that will result from this policy for FY2000 will be 2.95% or $58,905. This does not include the Clerk and Deputy Clerk positions under the Assembly's control, nor the Systems Manager, which will be increased by $7,630 to $63,520 and the NPRSA Recreation director which will be increased by $5,000 to $55,000 at the request of the NPRSA Board.

Also attached are a substitute range chart and grading structure deleting the currently unused range 8 and full-time administrative officer position. Also deleted is the range 7 general services director with administrative officer duties with a new provision at the bottom of the grading structure indicating that whichever position has additional administrative officer duties receives up to 10% extra in additional compensation.

POLICY FOR ADMINISTRATIVE EMPLOYEE

SALARY INCREASES

1. The Mayor will set actual salaries within the salary ranges and pay chart approved by the assembly.

2 For each fiscal year, the total amount budgeted and available for administrative salary adjustments will be based on the same cumulative percentage due classified employees through general wage increases and/or cost of living payments and scheduled step increases.

3. Notwithstanding the above, a limited number of positions identified as falling well below market average may receive a one time adjustment in the first year of the new salary system.

4. Funding for new positions and new hires will not be charged against the percentage and dollars pool established for Appendix A employees.

5. New hires will receive a starting salary no higher than the mid-point of the appropriate range. If market or other conditions require a higher starting salary, prior Assembly approval will be sought.