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4.12 SR 01-21-2025The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.12 Meeting Date January 21, 2025 Prepared By Lauren Wipper, Human Resources Manager Item Description Pay Equity Compliance Report Reviewed by Cal Portner Tina Allard Action Requested Approve, by motion, the Pay Equity Implementation Report and Compliance Report. Background/Discussion The 1984 Local Government Pay Equity Act (Act) requires each local government jurisdiction to report its pay data to the Minnesota Management and Budget Office (MMB) every three years to determine compliance. The intention of the act is to ensure public entities' pay structures are equitable between job classes. The city is required to report for 2024 and the report is due on January 31, 2025. To comply with the Act, the underpayment ratio must be more than 80%, or if less than 80%, the T-test results must pass. The city's underpayment ratio is 97.05882%, therefore passing the test. MMB will review the report and notify the city of the results; however, based on the information presented, it appears the city complies with the act as of December 31, 2024. Financial Impact None Mission/Policy/Goal The Elk River Mission statement Attachments 1. Compliance Report 2. Implementation Report Page 111 of 155 Compliance Report Jurisdiction:Elk River Report Year:2025 13065 Orono Parkway Case:1 - 2025 DATA (Private (Jur Only)) Elk River, MN 55330 Contact:Lauren Wipper Phone:(763) 635-1024 E-Mail:lwipper@elkrivermn.go v The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION Male Classes Female Classes Balanced Classes All Job Classes # Job Classes 46 33 4 83 # Employees 75 60 21 156 Avg. Max Monthly Pay per employee 8320.41 7145.99 7335.23 II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 97.05882 * Male Classes Female Classes a. # At or above Predicted Pay 23 16 b. # Below Predicted Pay 23 17 c. TOTAL 46 33 d. % Below Predicted Pay (b divided by c = d)50.00 51.52 *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom (DF) = 133 Value of T = 0.292 a. Avg. diff. in pay from predicted pay for male jobs = 32 b. Avg. diff. in pay from predicted pay for female jobs = 8 III. SALARY RANGE TEST = 93.53 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 3.83 B. Avg. # of years to max salary for female jobs = 4.09 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP = 0.00 * B. % of female classes receiving ESP = 0.00 *(If 20% or less, test result will be 0.00) Page 1 of 1 1/15/2025 12:49:59 PM Page 112 of 155 Pay Equity Implementation Report Part A: Jurisdiction Identification Jurisdiction:Elk River Jurisdiction Type:City 13065 Orono Parkway Elk River, MN 55330 Contact:Lauren Wipper Phone:(763) 635-1024 E-Mail:lwipper@elkrivermn.go v Part B: Official Verification 1.The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system was used: Consultant Description: We continue to use the same system and methodology we''ve used since 2018. Riley, Dettmann & Kelsey 2.Health Insurance benefits for male and female classes of comparable value have been evaluated and: There is no difference and female classes are not at a disadvantage. 3.An official notice has been posted at: City Hall Supply Room (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: City of Elk River (governing body) John Dietz (chief elected official) Mayor (title) Part C: Total Payroll $14056687.08 is the annual payroll for the calendar year just ended December 31. [ ]Checking this box indicates the following: - signature of chief elected official - approval by governing body - all information is complete and accurate, and - all employees over which the jurisdiction has final budgetary authority are included Date Submitted:1/15/2025 Page 1 of 1 1/15/2025 12:48:37 PM Page 113 of 155