Richland council adopts revised pay structure after employee testimony

The Richland City Council unanimously approved a new classification and compensation structure for unaffiliated employees on July 21, adopting resolution 2026-102 after a public hearing where city employees urged changes to the implementation plan.

HR Director Paulson told the council the city commissioned Arthur J. Gallagher to benchmark 131 unaffiliated job titles against peer organizations and national salary surveys. The proposed structure moves the city to a sequential pay-grade numbering system, anchors the lowest pay grade midpoint to a regional living-wage study, and adjusts midpoints so the system sits approximately 6% above the market median at implementation, Paulson said.

Paulson said the city did not propose lowering any pay ranges and that the study followed a “do no harm” approach, meaning no employee would receive a pay decrease. Under the recommended implementation, employees whose current pay falls below the new minimum would be moved up to that minimum; an additional one-time service-based adjustment of 1% per year of service would be applied for placement within the new ranges. Paulson said the implementation adjustments were budgeted within the 2026 budget and that the near-term cost to move people to the new minimums and apply the time-and-service adjustment is included in that budget.

At the public hearing, public works employee Chris Kristen Dykema and city employee Pat Abraham said the proposed timing and placement could leave mid- and senior-level staff in lower quartiles of the new ranges, which they warned could worsen retention and increase operational risk. “If mid to senior level staff fall into the first quartile of their pay ranges, it will be demoralizing and could very likely lead to further attrition,” Dykema said. Paulson responded that employees remain eligible for the city’s annual pay-for-performance (PAS) process and that the recommended structure provides more room for future growth.

Council members asked whether the implementation approach boxed the city into a fixed policy and whether it could be revisited in future years. Paulson said pay-for-performance pools and further budget choices would allow adjustments over time and suggested improving PAS metrics as a strategic goal.

Paulson detailed how many positions would be affected: 55 employees would be raised to the new minimums and 72 employees would receive the one-time time-and-service adjustment for their years in position. The administration described the funding as included in the 2026 budget and estimated the immediate budget impact at less than $400,000. Council approved the resolution by consent vote.

Next steps: staff said, pending council approval, implementation would begin with the pay period starting August 10, 2026, and that employee placement within ranges would be handled through the administration process rather than by the council.

Resolution: 2026-102 was adopted as read and will guide placement and implementation for unaffiliated staff.