Sterling approves steps and grades in proposed employee compensation scale

STERLING - Employees have waited a year, but the Select Board approved the proposed employee compensation scale so increases could be in place for the beginning of the fiscal year, which is July 1.

In a special meeting Tuesday night, the Select Board asked their questions and confirmed there are still some adjustments that could be made to individual positions.

Selectman John Kilcoyne said his concern was that the cost going forward would be exorbitant. He said that with a 3% or 4% increase between steps, that if steps were guaranteed yearly, the cost could quickly get out of control.

"For year two, three and four, I don't know (what the cost impact is), but I need to know," Kilcoyne said, adding that the town had a problem in 2011, 2012 and 2013 when they tried to do a new scale for employees. "It blew up and we had to blow it up and start from scratch," adding, "it was a nightmare."

Town Administrator Bill Caldwell said the step increases are not a yearly thing, but based on job reviews and performance.

Kilcoyne said he would want to know what other towns do. 

"If we give 3% to 4% (on step increases) every year, we probably will never do a COLA (cost of living adjustment)," Kilcoyne said.

Select Board member David Smith said he has worked for four towns: Two increases were automatic, two based on merit.

While the minimum current hourly rate for some Sterling positions was under the market average, Caldwell said the maximum was a bit higher in some cases.

The Select Board members praised the work done on the study, both by the consultant and town employees, who helped pull it together.

Moving all employees to the next step, as proposed by the study writer, will cost $29,492 for the coming year. Adding the 3% COLA, plus seven people getting an increase due to longevity, the total increase is $108,000. The town put $70,000 in additional pay in the operating budget and $75,000 in an additional article, so there is money budgeted to pay for the $108,000 increase approved by the Select Board.

Some details still need to be worked out and will come back before the Select Board in upcoming meetings.