3. Budget/salary recommendation - Laserfiche WebLink

GOVERNMENT AMitor Michael Montplaisir, CPA 701-241-5601 Treasurer Charlom Sandvik 701-241-5611 Director of Eq.ali ation Frank Klein 701-241.5616 Date: May 17, 2002 To: Cass County D?partment Heads From: Frank Klein and Charlotte Sandvik Re: Salary Proposal As requested by the Department Head group, we've recently reviewed the latest economic data in regards to inflation and salary trends. This information will be used to forward an appropriate salary adjustment recommendation to the Cass County Commission. Based upon an analysis of the information, we feel that the Department Head group should recommend a 3% adjustment to the salary scale. -~ ~le ~ep~./l~a~l ~ro~.p ix t~e~3 r"r;.l~ ~ma~ 31st-~ -~o ~ons,'de~ Exhibit A indicates that the latest 12 month trailing Consumer Price Index has increased 1.6%. Exhibit B indicates that the latest 12 month trailing Employment Cost Index has increased of 3.9%. Since 1992, the CPI has increased about 3% per year; while the Employment Cost Index has increased slightly more (see Exhibit C). The short term data (see Exhibit D) indicate that the CPI dipped in late 2001. During this same time period, the Employment Cost Index remained relatively constant at around 4%. The latest 3 month data also indicate that the CPI has moved back to trend (3%-4%). The dip in the CPI may have been due to the September 11th bombing incident. A comparison of the long run CPI and Employment Cost Index indicate that when the CPI is inordinately high, the Employment Cost Index is less and when the inflation rate is inordinately low, the Employment index is higher. Also, it appears that, over time, the Employment Cost Index trend is slighter higher than the CPI trend. It would appear, that over time, the American worker receives real gains in salary; which may be justified by increased productivity. It is the policy of Cass County to pay a competitive salary within budget constraints. Past salary surveys have triggered increases to the Cass salary scale. It would appear appropriate to consider the CPI and the Employment Cost Index to maintain a competitive salary structure. Based upon this data, we propose a 3% increase to the salary scale for your consideration. SUGGESTED MOTION: Move to accept the recommendation of Cass County's depar[ment heads on the cost of living adjustment (COLA) for 2003 budget purposes.