HomeMy WebLinkAboutItem 04 - Market AdjustmentMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JUNE 1, 2021
SUBJECT: CITYWIDE MARKET ADJUSTMENT AND APPROPRIATION
ORDINANCE
RECOMMENDATION: City Council approve an ordinance to appropriate funds for a 2% Market
Adjustment for all City employees effective July 4, 2021
FUNDING SOURCE: Upon approval of the attached appropriation ordinance, funding will be
available in the participating funds.
BACKGROUND: It is the stated goal of the City Council that employee compensation
maintain at the 50th percentile of market position when compared with
selected cities in the surrounding area. This is accomplished by
conducting an annual review of Open Range and Grade/Step pay scales.
Grapevine's last market adjustment was in October 2019. A study of the
local employment market indicates a 2% market adjustment is needed
now to maintain the 50th percentile.
Fortunately, the City has experiencing improvement in the local economy
as residents and visitors seek out local entertainment, shopping, and
dining in the post COVID-19 environment. Correspondingly, there have
been increases in the City's primary revenue streams (sales tax and hotel
occupancy tax) that will provide the necessary revenues to fund the
market adjustments.
Staff recommends approval of a citywide 2% market adjustment effective
July 4, 2021. The cost, when prorated for the remaining three months of
FY21 totals $219,024 across all participating funds. As we move forward
with the fiscal year 2022 budget we will continue to monitor revenue
trends and our market position.
Staff recommends approval