Council debates 4% COLA and 3% merit pool as part of 2024 budget deliberations

County staff presented the proposed 2024 compensation package and data showing how a 4% cost-of-living adjustment (COLA) combined with a 3% merit pool would affect competitiveness and retention.

An unnamed staff presenter summarized the proposal as “we have 4% in for cost of living and 3% for merit.” Staff argued that merit plus COLA compounds over time and that discontinuing merit could leave the county’s pay ranges out of alignment with other public employers.

David Warnock, county staff, explained that merit is commonly used as a pool of funds to adjust individual salaries and that a bonus alternative would not increase base pay ranges; staff warned that without merit, the county may fall further behind other jurisdictions in the tight labor market.

Council members sought clarity on the mechanics. They asked how a department identifies underpaid positions and whether changes to pay ranges require a holistic market survey. Staff explained that pay-range adjustments typically follow a broader pay-plan process and that department-specific adjustments can be requested to the extent budget funds are available; the council discussed historical merit distribution, noting that not all employees received merit increases in prior years because many are at the top of their pay range.

The council also reviewed the fiscal scale of compensation changes: staff said roughly $330,000–$340,000 in the budget corresponds to each 1% change in total compensation. Members emphasized the need for transparency and recommended forming a separate compensation review process in early 2024 to avoid ad-hoc, end-of-year decisions.

Next steps: staff will provide additional comparative data, continue to refine deliverables and guardrails for merit distribution, and the council indicated interest in a dedicated compensation review process early next year.