General Services questions $55,000 compensation study amid tight budget

City officials pressed pause on a proposed $55,000 classification and compensation study during the General Services Committee meeting held Jan. 13, citing cost uncertainty and implementation questions that matter to taxpayers and city employees. Committee members asked who would perform the work, how much it would ultimately cost and what would happen after recommendations are delivered.

“The issue is how much it's really going to cost, who will be doing it and once it's done, what's the plan to implement it?” committee member Christie Wood asked. “Our budget is already not as full as we’d like it to be.” The comment underscored a central concern: the city’s general fund priorities may be strained if the study exceeds estimates.

The city is negotiating a contract with BestDay HR to conduct a citywide review of job classifications and pay. The study would update a compensation framework last revised in 2017 and is intended to benchmark positions across the organization to address pay compression and recruitment challenges. The initial price is $55,000; any work beyond that estimate would be billed at the consultant’s hourly rate of $185. Committee members calculated the project could reach roughly $67,000 if the vendor bills for additional hours.

Human Resources Director Melissa Tosi told the committee the earlier $10,000 allocation was intended only for a narrow review of exempt employees and not for a full classification and compensation overhaul. Tosi said the city is experiencing pressure in specific roles, including attorneys, and that a comprehensive outside study would provide unbiased recommendations she would not recommend duplicating in-house.

All three collective bargaining groups have signaled support for the study, according to a city report, leaving elected officials to weigh labor buy-in against fiscal constraints. Committee member Wood moved to recommend the City Council place the agreement on the Jan. 20 meeting agenda for further discussion and a possible vote.

For Kootenai County residents, the study’s outcome affects who fills city jobs, how competitively the city can recruit talent and whether taxpayers shoulder additional costs to raise or restructure pay. A consultant-led study can deliver a cleaner, comparative view of pay scales, but it also carries the risk of follow-on budget decisions for wage increases or reclassifications.

The takeaway? Watch the Jan. 20 council meeting, ask specific questions about scope and potential overruns, and press for a clear implementation plan before dollars are committed. Our two cents? Policymakers should balance fair pay and workforce stability with clear budget guardrails so local services and tax rates both stay on steady ground.