BUDGET WORKING PAPER

to:                  W. Calvin Horton, Town Manager

from:            Pam Eastwood, Human Resources Director

subject:      Report on Proposals for Employee Pay Changes in the Local Labor Market for FY 06-07

date:            May 17, 2006

PURPOSE

The purpose of this report is to present information on proposed changes in employee pay by 14 other municipalities and counties in the local labor market region.

BACKGROUND

This information was gathered by the Human Resources Director for the Town of Cary and is presented in coded fashion as most of the organizations had not finalized the decision and participants were not willing to release information about proposals unless the information was coded.

DISCUSSION

The participants in this survey were: Town of Chapel Hill, Holly Springs, Apex, Garner, Morrisville, Raleigh, Durham, Durham County, Wake County, Orange County, High Point, Wilson, Greensboro, Rocky Mount and Charlotte.

The survey shows that some organizations are considering enacting changes to the pay scale, merit increases and Cost of Living increases (COLA). Others are considering only one of these actions. The survey also shows the estimate for the total employee increase if all proposals are approved as presented. The report includes data which shows whether or not the organization has a longevity pay program for its employees. Definitions of key terms used in the survey are shown below the survey data.

RECOMMENDATION

This report is presented to provide information to the Council about what other organizations in the local labor market with whom the Town competes for employees are considering for changes in employee pay for the Fiscal Year 2006-07.