04. 2024 budget compensation consideration

211 9th Street South, Fargo, ND 58103 | www.casscountynd.gov Administration Telephone: 701-241-5770 Fax: 701-241-5776 wilsonro@casscountynd.gov MEMO TO: County Commission FROM: Robert W. Wilson Date: August 31, 2023 Subject: Compensation Briefing Related to 2024 Budget __________________________________________________________________________________ The County Commission closed the 2024 budget hearings on August 1st approving a tentative budget that included a 2 mill reduction compared to 2023 and provided a 3% employee Cost of Living Adjustment (COLA). The tentative budget did not include converting to a 12-step employee pay matrix that had been discussed during the budget hearings. The Board adopted that tentative budget as the Preliminary Budget on August 7th – locking in the 2 mill reduction. At the August 1st budget hearing the Commission also directed staff to prepare additional information related to employee compensation that could be discussed at the September 5th Commission meeting. Specifically, the Commission requested: • A cost estimate, both for 2024 and a five-year projected cost to transition from the current 17 – 21 compensation step plan to the 12-step plan recommended by Gallagher. • A review of the County’s 2024 projected General Fund ending fund balance vs. County policy of aiming to achieve a General Fund ending fund balance of between 17% - 25%. • Specifically, could the Commission consider increasing the 2024 employee COLA to 4% or 5.1% and achieve a General Fund ending fund balance that aligns with County policy? Detailed in the attached information, the Finance Office makes the following projections based on historical trends and the 2024 Preliminary Budget as approved: 1. The Year 1 cost to implement the 12-step employee pay matrix will be $556,027 for the county as a whole and 480,033 for the General Fund. 2. The five-year implementation cost of the 12-step employee pay matrix is $5,044,568 for the county as a whole and $4,412,695 for the General Fund. 3. Based on the approved 2024 Preliminary Budget and the County’s financial policy of achieving an ending fund balance of 17%-25% of the general fund, the general fund is projected to support the new 12-step employee pay matrix AND a. 3.0% COLA = 22.49% Ending Fund Balance, or b. 4.0% COLA = 21.90% Ending Fund Balance, or c. 5.1% COLA = 21.26% Ending Fund Balance Based on this information it is my recommendation the Commission adopt the 12-step employee pay matrix and a 4% COLA as part of the final 2024 Cass County Budget.