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121087.2 / <br />TO: Mayor and City Council <br />FROM: Mark Bernhardson, City Administrator <br />DATE: December 10, 1987 <br />SUBJECT: 1987/1988 Compensation <br />Attachments: A. Recommendation for 1987 Adjustments <br />B. 1987/1988 Compensation Resolution <br />C. City of Orono Compensation/Hand Out Dated <br />12/7/87 <br />ISSUE <br />1. Consideration of 1987 compensation adjustments in light of <br />internal equity study. <br />2. Approval of 1988 compensation adjustments. <br />INTRODUCTION - At the work session on December 7, 1987 background <br />on_City_compensation and the general parameters for future <br />compensation were presented. Progress on development of the <br />compensation systems elements have not progressed as rapidly as <br />had been hoped. (This is primarly because the mathmatical <br />development of the appropriate analytic regression line to <br />determine expected performance compensation is not yet complete.) <br />Enough data is however available to recommend certain adjustments <br />for selected personnel. <br />DISCUSSION - As discussed on the 7th the development of a <br />regression line to fit the internal study data is key in <br />development of the pay line for the expected performanc:a. <br />Development of this has not progressed as satisfactorly as had <br />been hoped. It will howe,,.,- be developed prior to formulation of <br />a compensation plan in 1988. The initial cost of living <br />adjustments that were budgeted for in 1988 together with <br />incorporation of any 187 adjustments could be made now and these <br />could then be followed by any adjustments necessitated by <br />development of the compensation plan in 1988. Development of the <br />compensation plan for 1988 would also include the grouping of <br />positions into classes,dcvelopment of the expected pay line and a <br />progression system through the initial pay program. Presented <br />also for discussion at that time will be the means by which a <br />person could receive compensation for performance above the <br />expected level of performance. <br />The market data provided is an approximation from the 1987 <br />Stanton Data for cities. The mid -point data is not necessairly <br />the average of the "expected performance" pay level, nor does it <br />necessairly reflect any comparable worth adjustments made by <br />cities during 1987. <br />