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HomeMy WebLinkAbout04.a. Review draft to approve the proposed salary adjustment of 13 percent for the Finance Manager ClassificationPage 1 of 4 Item 4.a. DCENTRALSAN MEETING DATE: FEBRUARY 1, 2022 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE THE PROPOSED SALARYADJUSTMENT OF 13 PERCENT FOR THE FINANCE MANAGER CLASSIFICATION (M29, $6,344-$7,711.20 BI-WEEKLYTO M24, $7,178.40- $8,725.60 BI-WEEKLY) SUBMITTED BY: INITIATING DEPARTMENT: TEJ I O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT MANAGER ISSUE Board approval is required for salary adjustments. OFFICE OF THE GENERAL MANAGER - HUMAN RESOURCES BACKGROUND Due to the recent salary increases for many classifications as a result of the class study, Human Resources conducted an internal review of salaries to ensure internal parity between classifications with similar organization level, duties, responsibilities, and requirements. While the class study focused on whether individuals were appropriately classified and working within the scope of their current classification, this review was focused on whether or not classifications were appropriately paid compared to others with a comparable level of duties and responsibilities. During this review, the Finance Manager was identified as a class that should be further studied. There are currently twelve manager classifications, and the Finance Manager salary is the third lowest, above only the Program Manager and the Purchasing and Materials Manager. All of the classes above the Finance Manager are paid at the same salary level (M24). A chart of all manager's salaries can be found in Attachment 1. The Finance Manager position plays a crucial and pivotal role in the operations of the entire District. Additionally ,since this is an at -will position, the performance of the incumbent can also be taken into consideration when determining whether or not a salary adjustment is warranted. Based on the complexity and criticality of the position as well as the incumbents above par performance in accomplishing many assigned objectives for his Division, a salary adjustment is warranted. February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 4 of 41 Page 2 of 4 Human Resources is recommending a 13 percent increase for this classification, which would move the salary range from M29 to M24. For a visual reference and cost impacts, please refer to Attachment 2. This increase will move the Finance Manager to 24.8 percent above the Program Manager, 31.1 percent above the Purchasing and Materials Manager, 13.0 percent above the Communications Services and Government Relations Manager, and on par with the other eight Division Manager classifications. ALTERNATIVES/CONSIDERATIONS Deny or propose an alternative adjustment FINANCIAL IMPACTS If approved, the annual cost would be $30,704.65 and is summarized in Attachment 2. COMMITTEE RECOMMENDATION The Administration Committee reviewed this matter at its February 1, 2022 meeting and recommended RECOMMENDED BOARD ACTION Approve the recommended 13 percent increase for the classification of Finance Manager, which would move the salary range from M29 to M24. Strategic Plan Tie -In GOAL THREE: Fiscal Responsibility Strategy 2 — Ensure integrity and transparency in financial management GOAL FOUR: Workforce Development Strategy 1— Proactively plan for future operational staffing needs ATTACHMENTS: 1. Current Manager Salaries 2. Cost Sheet February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 5 of 41 Page 3 of 4 Attachment 1 Current Manager Salaries Class Title Capital Projects Division Manager Collection Sytems Operations Division Manager Environmental and Regulatory Compliance Division Manager Finance Manager - PROPOSED Human Resources and Organizational Development Manager Information Technology Manager Planning and Development Services Division Manager Plant Maintenance Division Manager Plant Operations Division Manager Communications and Government Relations Manager Finance Manager Program Manager Purchasing and Materials Manager Max Annual Salary $226,865.60 $226,865.60 $226,865.60 $226,865.60 $226,865.60 $226,865.60 $226,865.60 $226,865.60 $226,865.60 $200,491.20 $200,491.20 $181,729.60 $172,931.20 Current Grade M24 M24 M24 M24 U24 M24 M24 M24 M24 M29 M29 M33 M35 February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 6 of 41 Attachment 2 Finance Manager Salary Increase Cost Sheet Annual Cost # of Current Proposed per Annual Current Class Proposed Class incumbents Salary Range Salary Range incumbent* Total Cost FINANCE MANAGER FINANCE MANAGER 1 M-29 M-24 $30,704.65 $30,704.65 OVERALL COST $30,704.65 * calculated with top step annual salary plus benefits February 1, 2022 Regular ADMIN Committee Meeting Agenda Packet - Page 7 of 41