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I4. Res. 6261, Non-Union Employee SalariesCity of Kalispell CITY OF Post Office Box 1997 - Kalispell, Montana 59903-1997 KALISPELL Telephone (406) 758-7700 Fax - (406) 758-7758 MEMORANDUM To: Honorable Mayor Johnson and City Council From: Doug Russell, City Manager Re: Non -union Salary Adjustment for Fiscal Year 2025 Meeting Date: June 16, 2025 BACKGROUND: Each year, as part of the budget process, the Council reviews the recommendation to adjust the wages of employees not represented by one of the three collective bargaining units. The city has put forth efforts to have market -based compensation and maintain consistency within the organization for the employees represented by one of the three bargaining units and the employees that are not represented. As such, our pay system was developed to be an objective process that prevents falling behind in the market, and conversely, prevents outpacing the market. This market -based process included developing a review system for each position that compares data points representing five cities with populations above the City of Kalispell and 5 cities with populations below the City of Kalispell. This allows for the creation of a 20-step matrix based on the midpoint of that analysis that is consistent with the market across Montana and allows for easy comparison during labor negotiations and non -union wage classifications. This market analysis process was conducted during last year's budget process for each position and is anticipated to be conducted next year. To maintain consistency the next two years adjustment will be the average of the three labor agreements. For this year, that equals a 4% base adjustment on the attached matrix. The classification plan for this year also includes the adjusted position reclassification in Finance discussed during the budget workshops: Finance Specialist. FISCAL IMPACT: The base increase for the recommended implementation is approximately $289,594 over last year. This amount is spread across numerous funds (general, enterprise, special revenue, etc.). RIECOMMIENDATION: It is recommended that the City Council approve Resolution 626 1, adopting the updated 20-step matrix and the annual step increase for eligible employees. ATTACNILENT: Resolution 96261 FY 2026 Wage Matrix RESOLUTION NO. 6261 A RESOLUTION ADJUSTING THE SALARY AND COMPENSATION OF THE CITY OFFICIALS, COUNCIL MEMBERS, SUPERVISORS, AND ALL OTHER NONUNION EMPLOYEES PURSUANT TO TITLE 7, CHAPTER 4, PART 42, M.C.A. COMMENCING ON THE DATE INDICATED HEREIN. WHEREAS, the City of Kalispell is a general powers city of the state of Montana and is authorized by MCA 7-4-4201 to set the compensation and salaries of its elected and appointed city officers by resolution of its City Council; and WHEREAS, by Ordinance No. 1623, the Kalispell City Council determined that it is in the best interests of the city and the efficient governance of the city that the compensation and salaries of the city employees be set from time to time by resolution of the Kalispell City Council; and WHEREAS, the City of Kalispell employs elected officials, appointed city officers as well as other nonunion employees who are not otherwise represented under a collective bargaining agreement; and WHEREAS, the City Council finds that it is fair and equitable based upon the salary market research of municipalities within the State of Montana to increase the salaries and compensation of the elected council members, appointed officers, and nonunion employees for FY2026 based on market survey results, with a 4% base adjustment in accordance with the effort to maintain consistency across the organization, and the 1.3% step increase built into the salary matrix. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The salaries and compensation of elected council members, appointed officers and nonunion employees for the period of FY2026, beginning July 1, 2025, shall be paid in amounts consistent with the wage and salary matrix attached hereto as Exhibit "A", subject to individual position classification review. Appropriations shall be made to pay same when due. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 16TH DAY OF JUNE, 2025. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk