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V. Compa Ratio: As part of the administration of the pay plan, a compa -ratio shall be <br /> computed for each management employee. The compa -ratio represents the <br /> relationship of each manager's and confidential employee's current salary to the <br /> control point of his /her salary grade. The compa -ratio is calculated by dividing the <br /> employee's current salary by the control point of his /her salary grade. <br /> VI. Annual Salary Grade Adjustment: Salary grades will be normally adjusted annually <br /> during the budget process, taking into consideration market and other influences such <br /> as increases granted managers among agencies within the city's survey area, <br /> increases granted the city's represented employees, internal relationships between <br /> supervisory positions and across departments, etc. The salary grade adjustment will <br /> not usually result in any adjustment to individual managers or confidential employee's <br /> salaries unless a reclassification or job change results. <br /> VII. Salary Range Differentials: When setting salary range control points, the plan shall <br /> seek to maintain a 15% differential between the 104 percentile of each middle <br /> management classification's salary range and the 104 percentile of the <br /> corresponding senior management classification's salary range. The plan shall also <br /> seek to maintain a 15% differential between the 104` percentile of each middle <br /> management classification's salary range and E step of the highest compensated <br /> represented classification a middle management classification supervises. The <br /> following are exceptions to the 15% standard: between fire division chief and fire <br /> captain the differential is 20 %; between police lieutenant and police sergeant the <br /> differential is 20 %; and between senior public works inspector and lead public works <br /> inspector the differential is 9 %. <br /> VIII. Merit Increase Pool: Each year based upon the recommendation of the City <br /> Manager and as approved by the City Council, there shall be established a merit <br /> increase pool. The merit increase pool is a percentage of total base management <br /> salaries from which management and confidential employee salary increases are <br /> distributed. <br /> Page 24 of 31 <br />