2.4 ERMUSR 06-13-2023��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Megan Zachman — HR Generalist
MEETING DATE:
AGENDA ITEM NUMBER:
June 13, 2023
2.4
SUBJECT:
Compensation Report
ACTION REQUESTED:
Approve the 2023 compensation
increase for General Manager.
BACKGROUND:
As part of ERMU's 5-Step pay plan, employees who have met the expectations of their position
in the preceding year are eligible for a Step increase on their work -anniversary.
DISCUSSION:
Mark Hanson, General Manager, was hired on July 18, 2022, at a pay rate that was between
Steps 3 and 4 of the position's pay range. After discussion with the Commission (following Mr.
Hanson's performance review), it was recommended that Mr. Hanson receive a pay increase
equal to one (1) full Step. In doing this, Mr. Hanson's salary will increase by $3.41 per hour. The
following calculations detail how the Step increase was determined:
• Difference between Step 3 and Step 4 = $3.40
• Difference between Step 4 and Step 5 = $3.42
• Average = $3.41
• The value of a full step = $3.41
• The hourly rate increases by $3.41 per hour.
FINANCIAL IMPACT:
Step pay increases are included in the normal budgeting process; there is no financial impact.
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