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V. Compa Ratio: As part of the administration of the pay plan a compa ratio shall be computed <br /> for each management employee. The compa ratio represents the relationship of each manager's <br /> and confidential employee's current salary to the control point of his/her salary grade. The <br /> compa ratio is calculated by dividing the employee's current salary by the control point of <br /> his/her salary grade. <br /> VI. Annual Salary Grade Adiustment: Salary grades will be normally adjusted annually during <br /> the budget process, taking into consideration market and other influences such as increases <br /> granted managers among agencies within the city's survey area, increases granted the city's <br /> represented employees, internal relationships between supervisory positions and across <br /> departments, etc. The salary grade adjustment will not usually result in any adjustment to <br /> individual managers or confidential employee's salaries unless a reclassification or job change <br /> results. <br /> VII. Salary Ranee Differentials: When setting salary range control points, the plan shall seek to <br /> maintain a 15% differential between the 104 percentile of each middle management <br /> classification's salary range and the 104 percentile of the corresponding senior management <br /> classification's salary range. The plan shall also seek to maintain a 15% differential between <br /> the 104 percentile of each middle management classification's salary range and E step of the <br /> highest compensated represented classification. a middle management classification supervises. <br /> The following are exceptions to the 15% standard: between fire division chief and fire captain <br /> the differential is 20 %; between police lieutenant and police sergeant the differential is 20%; <br /> and between senior public works inspector and lead public works inspector the differential is <br /> 9 %. <br /> VIII. Merit Increase Pool: Each year based upon the recommendation of the City Manager and as <br /> approved by the City Council, there shall be established a merit increase pool. The merit <br /> increase pool is a percentage of total base management salaries from which management and <br /> confidential employee salary increases are distributed. <br /> 9/1/99 Page 22 of 26 <br />