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TO;Mayor and City Council <br />FROM; <br />DATE: <br />Ron Moorse, City Administrator <br />Januarv 10, 2002 <br />SUBJECT: Salary Range Proposal for Police Chief, Public Ser\ ioes Director and Finance <br />Director Positions <br />Prior to the hiring of the new Police Chief; the Fimmce Director, Public Ser\ices Director and Police <br />Chief positions were all in the same salary range. When Chief Good was hired, her salary was set <br />at a level substantially higher than the Department Head salary range maximum. At that time, there <br />was discussion regarding whether the higher Police Chief salary level should have an impact on the <br />salary range of the Finance Director and Public Services Director. <br />1'o address the comparative salary ’ level issue, it was necessary to determine whether the Police Chief <br />position was treated differently in the marketplace than the other Department Head positions. To <br />make this determination, a compensation consultant w as hired to conduct a salary suiA'ey and provide <br />a recommendation regarding whether the Police Chief position should be at a different pay level than <br />the other Department Heads. The salary' suix'ey found that there was not a significant differential in <br />pay level between the Police Chief and the other Department Heads in the marketplace. The <br />recommendation of the consultant w as to keep the three Department Heads in the same pay range. <br />Based on this recommendation, the consultant was directed to provide a recommendation for <br />reconciling the large difference bctw'een the Police Chief s starting salary and the Department Head <br />salary range mo.ximum. The consultant has recommended that the Department Head salary range <br />be widened substantially to encompass the Police Chiefs salary, with substantial room for salary <br />growth. He has also recommended that movement to and through the upper portion of the salary <br />range be based on performance. The recommended Department Head salary range has as its mid­ <br />point the current salary level of the Finance Director and Public Services Director. Beyond the mid­ <br />point is performance-based pay that is earned through achievement of specific goals and objectives. <br />The recommended salary range, as well as the current salary levels of the Department Heads, are <br />attached. <br />The concept of performance-based pay has been discussed periodically for a number of years. I <br />believe the Department Head level is the best place to initiate a performance-based pay system, since <br />the Department Heads can be responsible and accountable for the accomplishment of objectives that <br />have the greatest impact on the effectiveness of departmental operations.