HomeMy WebLinkAboutIR 7218 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7218 -
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To the Mayor and Members of the City Council September 15, 1987
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Subject: City of Fort Worth's Performance Pay Plan
The purpose of this informal report is to provide members of the City Council with background
information on the City's Performance Pay Plan and a historical perspective describing how
the City's pay system has evolved to its current design. We believe this background will be
especially beneficial to those members of the Council who have joined the Council since the
program was initiated in October 1984, as well as a refresher for the senior members of Council.
Historical. The City has had a pay system or plan for many years. Since the late 19501s, the
City's pay plan reflected the practices of other local and state pay plans in one form or another.
The basic pay plan, which the City used with most general employees up until September 30,
1986, was similar to plans used in most local jurisdictions in the United States.
Each job classification was assigned to a range, which was approximately 25% to 30% in length;
the range was divided into steps, usually from 6 to 8. Employee pay increases, under the system,
were granted primarily in two ways.
First, to move from one step to the next was based on length of service, "merit," and increased
competency in the job.
Secondly, based on annual surveys, employees received increases when adjustments were made
owlto the pay ranges. These adjustments were typically across-the-board or were so-called
"cost-of-living" increases and reflected changes in what other employers in the community
J or other cities were paying for the type of Work; selective adjustments greater than the
"across-the-board" were granted when surveys indicated a more drastic change in the labor
market. This allowed the City to be competitive with other employers.
Example: Laborer making $5.00 per hour. Range adjustment of 5% "Merit" increase of 5%.
Base wage/rate $5.00
Range adjustment .25
Adjusted wage rate 5.25
During the year, the employee was evaluated on his/her anniversary date. If the supervisor
believed the employee was deserving, the supervisor could have granted an additional "merit"
or step increase, which was usually 5%. Therefore, the laborer's rate of pay was adjusted 10%
during the year.
The above describes the pay plan that was in effect for most employees through September
30, 1986. It also describes the type of plan that is currently in effect for police officers and
firefighters.
Because of the State Civil Service Law, police officers and firefighters automatically receive
the range adjustment and the step increase; the state law requires cities subject to the law
to pay police officers and firefighters in the same classification the same pay; step increases
are permitted since they reflect longevity or membership. "Merit" or "performance" based
increases are precluded because of the above requirement. It should be noted that all police
and fire classifications did not always have 5 or 6 steps within their ranges.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS