City Manager Ken Larking announced today that the results of an organization-wide pay study show the City of Danville will be able to achieve its goal of implementing a pay plan for employees based on 100% of market in the next fiscal year, which begins July 1.
Also, no employee will be making less than $15 per hour.
“This is great news because we have not been able to afford this in the past,” Larking said. “The last time we implemented a pay plan, we were only able to get to 90% of the market, and we could only move those below the minimum to the new minimum.”
He added, “We are looking at strategies for increasing the pay for existing employees that will already be above the new minimum for their position. This is something we could not afford to do the last time.”
Last week, Larking submitted a proposed budget for the next fiscal year that included $1.3 million for implementation of recommendations from the pay study.
Mayor Alonzo Jones welcomed the study’s results.
“It is important to me, City Council, and City administration that our employees are paid a competitive wage,” Jones said. “I am pleased we are able to afford to implement this new pay plan in our upcoming budget.”
The organization-wide pay study was undertaken to address disparities that have developed because of volatile movements in market averages since 2019, when a pay study was conducted to address market disparities at that time.
Employees have received annual pay for performance raises over the last eight years, with the last one being in July. Every employee except sworn police officers received another wage adjustment effective Jan. 1 to account for the state minimum wage increase.
Larking said that he appreciates the City Council for making strategic investments in economic revitalization, which has helped increase tax base and tax revenue in recent years.
“If not for this growth, we could not afford to continue the high level of services our community enjoys, or the pay increases our employees consistently receive,” Larking said.
The Berkley Group conducted the study, which began in February. Data was collected from peer communities in the region.
The study addressed wages only. Employee benefits, including health insurance, paid holidays, and family leave, meet or exceed the market in most aspects.