The document summarizes a pay and classification study update conducted in 2012 for the City of San Angelo. It found that 25 out of 39 pay ranges had fallen below 2009 levels when compared to 9 similar cities. This affected 429 employees, many in lower paying roles. Council had approved 3% in funding for increases. Staff recommended using most of the funding to raise applicable pay ranges to 80% of survey averages, and distributing the remainder as a 1.25% merit increase. This was preferred over just awarding 3% merit increases, which would only treat the symptoms.

1. Pay & Classification Study
Update – Pay Ranges & Salaries
September 18, 2012

2. Pay & Classification Update
At the August 30, 2011 City Council meeting, staff was
directed to “update the compensation plan, the
benchmark data and present such at a future meeting”.
Due to the volume of this undertaking, an unpaid intern
from ASU volunteered to assist HR with this update.

3. Pay & Classification Helpful Background
Also known as “classification & compensation”, pay and
classification is a universal Human Resources tool to
establish structures for pay ranges based upon a
variety of job factors including: job duties, complexity
of work, consequence of errors, financial
responsibilities, supervision given or received, etc.
Jobs are then grouped based on how closely their job
factors match.

4. Pay & Classification Helpful Background
Each group is then assigned a pay grade based on
market rates for those job factors.
Each pay grade has a pay range, based on market, and
the pay range has a minimum, a midpoint, and a
maximum salary.

5. Pay & Classification Helpful Background
It is the midpoint for each pay range that is surveyed
when comparing pay ranges.
Example:
Minimum Midpoint Maximum
Job “X” Employer 1 $10,000 $40,000 $70,000
Job “X” Employer 2 $20,000 $40,000 $60,000
Job “X” Employer 3 $30,000 $40,000 $50,000
Employee salaries are at various points between minimum and maximum based
upon experience and merit performance pay increases.

6. Pay & Classification Helpful Background
It is the average of the midpoints that is used to
determine the distance a pay range is from the market.
In the last example, $40,000 was the average midpoint.
If the City of San Angelo midpoint is $30,000, then the
San Angelo midpoint (in the example) is at 75% of the
average.
($30,000 / $40,000 = 75%)

7. Pay & Classification Update
• Pay & Classification Study was performed in 2007/08.
• In both 2008 and 2009, adjustments to pay ranges
were made & salary increases were given.
• Update to the Study was performed in June/July 2012.
• Thirteen cities were invited to participate. (No data was
received from Beaumont, Temple, Tyler or Waco.)
• 223 jobs were compared with 9 comparative cities:
Abilene Brownsville Denton
Killeen Lewisville Lubbock
Midland Odessa Wichita Falls

8. Pay & Classification Update
• In 2008, pay ranges & salaries that fell below 85% of
the surveyed midpoint averages were raised.
• In 2009, efforts were to raise pay ranges & salaries to
90% of the surveyed midpoint averages, however
funding only supported movement to 87% of the
surveyed midpoint averages.
• All 39 surveyed pay ranges were at 87% or higher of
the surveyed cities.

9. Current Pay Plan
In 2012, the pay ranges are at the following levels:
• 3 are at 65% - 69% of the surveyed cities average
midpoints
• 12 are at 70% - 79%
• 10 are at 80% - 86%
• 14 are at 87% or better.

10. Current Pay Plan
• In the 3 years since the pay ranges were last adjusted,
25 of the 39 pay ranges and have fallen off the 2009
mark of the comparative cities.
• This affects 429 employees, with heavy concentration
in the lower pay ranges.

11. Concentrations of Employees
S
U
R
V
E
Y
GRADE

12. Current Pay Plan
Low salaries impact:
• Recruiting
• Retention
• Morale
There are presently 46 vacant positions.

13. Current Pay Plan
26 vacancies are in pay grades that are below 80% of the
average midpoints. Jobs below 80% include:
Administrative Assistants, Animal Service Officers,
Animal Shelter Assistants, Building Inspectors, Code
Compliance Officers, Crew Leaders, Customer Service
Reps, Dispatchers, Fire Drivers, Firefighter/
Paramedics, GIS Techs, Heavy Equipment Operators,
Light Equipment Operators, LVNs, Mechanics, Water/
Wastewater Plant Operators.

14. Is There a Fix?
Council has approved funding equivalent to a 3% pay
increase citywide. Using that existing funding, one of
two scenarios can be achieved:
1) Award 3% average merit increases for all
employees or some employees if Council wishes to
cap increases at a particular salary level,
OR
2) Bring applicable pay ranges up to 80% of the survey
and apply the remainder of the funds in a 1.25% merit
increase for those who meet or exceed expectations.

15. Staff Recommendation
Staff recommends solving the problem by applying the
second option. The City would only be treating the
symptoms if merit increases alone were awarded.