By BECKY KISER
Hays Post
A proposed new pay plan and job classification program for city of Hays employees was reviewed by city commissioners Thursday night.
Starting with the first payroll of 2019, the pay plan would provide two percent steps to all employees each year on their anniversary month, explained Erin Giebler, Director of Human Resources.
“Prior to 2019, the city did not provide consistent or predictable pay increases from year to year,” Giebler told commissioners.
To make the pay plan affordable, a volunteer committee of 15 employees made changes to the benefits offered, including lower Paid Time Off (PTO) accruals and capping the longevity bonus at four percent.
“In order to allow employees to keep all benefits the same, the city developed the Red Plan. This allows current employees to keep all their benefits the same, but in return they are provided with lower wages and lower earning potentials.
“Current employees who do not elect the Red Plan and those hired after the start of the payroll year in 2019 will be placed on the Blue Plan, which has a change in benefits with higher wages and earning potential.
“Basically, current employees get to decide whether they want more PTO or more money.”
Giebler said she expects nearly all the current 181 employees to choose the Blue Plan.
“I do have a few people who said they really like their PTO, and to each, their own. That’s why we’re giving them the option,” she said. “All of them but five are much better off if they choose the Blue Plan.”
Lowering the PTO accrual won’t result in immediate cost savings but it does provide “more work time,” the equivalent of about three and a half full-time employees, according to Giebler. “Capping the longevity bonus at four percent does provide instant cost savings to the city which will be used to help fund the pay plan.”
The pay increases are already included in the 2019 budget and maintenance of the pay plan will be part of the annual budget for commission approval.
“It will be a commodity cost just like everything else we have, just like asphalt or chemicals,” said Toby Dougherty, City Manager.
“I don’t envision a time as long as me or anybody else is around that we’re gonna come to the commission and say we want a mill levy increase because we have to do this. We’ll make adjustments if we have revenue constrictions.”
Commissioner Shaun Musil likes the change because it plans for upcoming years.
“I feel it’s in line with everything we do. We’re always looking the next three to five years out, whether it’s streets or something else.
“I think it’s good for the employees,” Musil added. “Anyone who’s hired employees knows it costs more when you have turnover. Hopefully, this will reduce turnover and get better talent applying for the city.”
Commissioner Sandy Jacob congratulated Giebler, city staff and the employee committee on their year-long work, calling it “outstanding.”
“I do think it’s a real benefit to our employees to be able to look at these plans and know where they’re going, know where their future is,” Jacob said. “I think it makes a big difference in how they look at their job every day.”
Vice-Mayor Henry Schwaller reiterated that employees “are sacrificing paid time off.”
“That is actually to the city’s and the residents’ benefit because (in the past) we’ve been a little too generous with paid time off and we’ve converted from vacation and sick leave. We had a lot of difficulty getting people to convert. This brings it in line and I like that a lot,” Schwaller said.
Implementing the proposed pay plan would cost an additional $353,605 above 2018’s budget with $212,866 being general fund expenditures. Future years’ steps would be approximately $200,000 per year with $130,000 being general fund expenditures.
The city commission will consider approving the proposal at the Sept. 13 meeting.