The Carson City Board of Supervisors met Friday morning to adopt the fiscal year 2025 final budget and before doing so approved a proposed minimum 5 percent pay increase for city employees — a boost effective at the end of the month that, according to proponents, will help the city recruit and retain workers.
“I feel it’s a really good step going forward for not only recruitment, but also retaining current employees that we have,” said Uriah Wise, Public Works employee and president of the Carson City Employees Association (CCEA).
After the raises were approved, including for unclassified employees except some positions in the District Attorney and Public Defender offices, Wise thanked the board.
“I want to also thank the city management team and finance and human resources for their due diligence in working hard and doing everything they can to put this together for all the classified employees of Carson City,” he said. “We are your biggest asset, and we thank you.”
The pay increases were already built into the tentative budget approved in April. The final budget included $2.4 million in supplemental requests also approved by supervisors in April, a roughly $9.3 million capital improvement plan and about a $128.5 million general fund budget.
For the employee agreements, supervisors first approved a memo of understanding between the CCEA and the city, effective for two years, to change the collective bargaining agreement to boost salary ranges for classified employees and provide a one-time 5 percent pay raise “or placement into the bottom of the adjusted salary range, whichever is greater,” according to the agenda.
Increases in salaries and benefits for classified employees were estimated to cost about $1.9 million in the next fiscal year that starts July 1.
Next, supervisors approved a resolution for unclassified employees that will create new pay ranges and provide a one-time 5 percent salary increase or placement into bottom of new pay ranges, whichever is greater, according to agenda. In this measure, supervisors also agreed to an annual 2 percent cost-of-living increase for unclassified positions; the inclusion of Juneteenth as a legal holiday; and increasing the percentage the city pays for health insurance premiums for employee dependents.
“The city shall pay 100% of an employee's premium for group health insurance coverage and 65% of dependents' group health insurance coverage for the cost of the plan selected by the employee except that the city will only pay 50% of a dependent’s coverage if the employee elects coverage under the high deductible plan,” reads the resolution for unclassified employees.
The city’s contribution for dependents had been 50 percent, according to a staff report. In total, the increases to salaries and benefits for unclassified employees were estimated to cost $992,150 in the next fiscal year.
One driving force behind the pay bump was a compensation study conducted last year by Pontifex Consulting Group. The study showed the city was paying employees below market averages as comparted to nearby municipalities such as the cities of Sparks and Reno, Washoe, Lyon and Douglas counties.
The study found for classified jobs, the starting salary in the city lagged 18.4 percent behind the labor market average rates. That changed Friday. The annual salary range for a classified office specialist, for example, will increase from approximately $34,879-$52,319 to $41,419-$57,987.
For unclassified employees, the study found the starting salaries fell behind the labor market averages by 17 percent. That also changed Friday. The annual salary range for a facility maintenance manager, for instance, will go from approximately $65,849-$98,774 to $72,181-$115,489.
The board’s vote was unanimous for the classified measure. The vote was 4-0-1 for the unclassified measure, with Supervisor Lisa Schuette abstaining due to familial ties with an affected employee.
The city’s final budget for the next fiscal year was approved unanimously, followed by 4-1 approval of the city’s roughly $3.8 million redevelopment budget. Supervisor Maurice White voted against the latter.