Board approves FY26 compression pay adjustments, effective June 15

The Fluvanna County Board of Supervisors on June 4 approved a set of FY26 compression pay adjustments intended to reduce pay compression created when the county raised starting pay bands earlier this year.

The board approved the plan, effective June 15, 2025. The FY26 budget that the board adopted includes a 3% cost‑of‑living adjustment (COLA) and $250,000 allocated for compression adjustments. The board approved the specific compression pay adjustments by voice vote; the chair recorded the motion as carrying 4-0.

Why the change
County staff explained that earlier increases to starting pay bands improved recruiting but left some longer‑tenured employees with pay rates close to or only modestly above new hires. To address that, the compression plan applies an additional percentage adjustment based on an employee’s position relative to the pay‑band minimum after the 3% COLA. The plan applies only to employees hired before March 1, 2025 (the date the county increased pay bands).

How the adjustments work
- Employees 0–5% above the pay‑band minimum receive a 3% adjustment.
- Employees 5–10% above receive 2.5%.
- Employees 10–15% above receive 2%.
- Employees 15–20% above receive 1.5%.
- Employees more than 20% above receive 1%.

Staff presented approximate averages across groups: law enforcement employees averaged about 18.1% above the pay‑band minimum, producing an average adjustment of about 1.9%; general government employees averaged 12.7% above, producing an average adjustment of about 2.2%; Department of Social Services staff averaged about 59.6% above the minimum, producing an average adjustment of about 1%.

Motion and vote
Motion: "Move the board of supervisors approve the FY26 budget compression pay adjustments plan as presented effective 06/15/2025." Mover: Mister Goetz. Seconder: Mister Hodge. Vote: chair recorded “aye”; recorded in the meeting as 4-0 in favor. Outcome: approved.

Who benefits and next steps
Eligible employees are those hired before March 1, 2025. Staff said adjustments will be processed after the effective date and tracked as part of normal payroll operations. Officials also discussed the value of considering steps within pay bands as a longer‑term retention tool, and staff agreed to explore that idea for future budgets.

Speakers
- Mister Goadell — staff member presenting (government)
- Mister Goetz — Board member (government)
- Mister Hodge — Board member (government)

Authorities
- []

Clarifying details
- {"category":"budget_allocation","detail":"FY26 budget included 3% COLA and $250,000 for compression pay adjustments","value":"250000","units":"USD","approximate":false,"source_speaker":"Mister Goadell"}
- {"category":"effective_date","detail":"Effective date for compression adjustments","value":"2025-06-15","units":"date","approximate":false,"source_speaker":"Mister Goadell"}
- {"category":"eligibility","detail":"Employees hired prior to 03/01/2025 are eligible","value":null,"units":"","approximate":false,"source_speaker":"Mister Goadell"}

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