City staff proposes $3.5M market realignment, average 7% pay adjustment for city employees

Human Resources presented a total compensation package on July 13 that would realign pay to local market rates and shore up the city's health‑benefit reserves.

"The total estimated impact is about $3,500,000," Jessica Roberts, Human Resources Director, told council, describing a onetime market adjustment she said would bring pay closer to Aspen's above‑market target. Roberts said the adjustment would affect roughly 370 active‑roster employees, with an average pay adjustment of about 7% — "roughly $7,500 annually per impacted employee," she said — and recommended continuing an ongoing annual mechanism of up to 4% thereafter.

Roberts also outlined a health‑fund strategy: the city manages a self‑funded health plan and will build reserves in the 2027 budget (up to a 10% budget increase for the health fund) to cover recent higher than normal claims and ensure plan sustainability. She noted the city already increased employer HSA contributions from $1,000 to $2,000 in 2026 and plans to continue that contribution into 2027.

Council members generally expressed support for moving the approach into budget hearings while pressing for careful evaluation of retention drivers and hiring at lower pay bands. "I want to be sensitive to the data that shows that very few people leave because of compensation," one council member said, urging measured, competitive adjustments rather than overcompensation.

Why it matters: The compensation proposal addresses recruitment and retention pressures in a tight local labor market and would increase recurring personnel costs; council gave broad support to advance the proposal into the formal budget process with additional staff analysis.

Next steps: Human Resources and finance will incorporate the market realignment, health‑fund reserve recommendations and any council feedback into the budget materials for upcoming hearings.