CITY OF FORTUNA Step Policy
ADMINISTRATIVE POLICIES & PROCEDURES MANUAL
Policy Number:
Authority:
Effective:
Revised:
Reviewed:
Initiating Dept:
XXX
CM
May X, 2025
City Council
Admin
1. PURPOSE
It is the intent of the City to establish a sound and just pay step policy to equitably compensate all employees for duties they perform within their designated classification in a manner that meets expectations for that position. The policy sets forth procedures to ensure like treatment for employees in the classified service.
Increases will be consistent with the pay schedule approved by the City Council and as incorporated into the City’s annual budget.
2. GENERAL POLICY
All City employees are compensated in accordance with the Classification and Pay Schedule adopted prior to each Fiscal Year by City Council Resolution.
A minimum and maximum pay, or range, is established for each position. The pay range shall consist of six (6) steps, zero (0) through five (5) with four percent (4%) increase between each step. The maximum pay level shall be twenty-one and two-thirds percent (21.67%) higher than the minimum pay level.
A newly hired employee shall be placed at step 0 of the pay schedule range established for the position. The City Manager, may, when circumstances warrant it, authorize appointment above the minimum pay level, but not higher than Step 2, except with the concurrence of City Council.
No advancement of pay level shall be made above the maximum pay level established for the position in a particular range.
To hire an employee at a step other than 0 requires approval of the Department Head and City Manager. The Department Head should review the application and provide documentation in the form of a filled out Advanced Pay Step for New Hire from (Appendix A) to support the request, recognizing that approval will be based on individual qualifications, market availability, and the pay of employees currently in the classification.
Step Increases
A full-time employee, hired or promoted to a position at step 0 of the appropriate pay range, upon evaluation and approval by their Supervisor, and City Manager, shall be eligible to advance to step 1, after six months of employment with the City. Moving from step zero 0 to step one 1 will not be paid retroactively. If an employee is not recommended to move from step 0 to step 1 at the six month review the employee will still receive the step increase on their anniversary date.
Thereafter, the employee shall be eligible, to advance automatically to steps 2, 3, 4 and 5 at the end of each consecutive year, upon the employee’s anniversary date. These step increases will be CITY OF FORTUNA Step Policy
ADMINISTRATIVE POLICIES & PROCEDURES MANUAL
Policy Number:
Authority:
Effective:
Revised:
Reviewed:
Initiating Dept:
XXX
CM
May X, 2025
City Council
Admin
paid retroactively to the employee’s anniversary date. Automatic step increases shall be accompanied by an annual performance evaluation and are the responsibility of the employee’s immediate Supervisor.
As a general practice, an employee shall move up one-step each year on their anniversary/promotional date. An exception may be made to this only upon an evaluation being given to the employee prior to the anniversary date in which a step increase has been demonstrated to not be warranted. When a determination has been made that an employee has exhibited professional performance that exceeds expected standards as demonstrated through the evaluation process, the City Manager shall retain the administrative latitude to move an employee up to one additional step (4%) within the range. This is considered an extraordinary step increase and is allowed only once per employee.
Cost of Living Adjustments
When a cost of living adjustment (COLA) is approved by the City Council, the COLA will increase the pay range for those positions awarded the adjustment.
Supplementary Compensation
The City Council may by resolution grant supplementary compensation to employees, including but not limited to contributions toward retirement, health insurance, physical examinations, uniform allowance, incentive pay, education, training, and benefits involving time off with pay.
Overtime Compensation
Overtime-eligible employees are not permitted to work overtime except as the department director authorizes or directs. No employee may work overtime without receiving the approval of the appropriate supervisor prior to performing the work. Working overtime without advance approval is grounds for discipline. Exceptions may be made for emergency situations.
CITY OF FORTUNA Step Policy
ADMINISTRATIVE POLICIES & PROCEDURES MANUAL
Policy Number:
Authority:
Effective:
Revised:
Reviewed:
Initiating Dept:
XXX
CM
May X, 2025
City Council
Admin
APPENDIX A
CITY OF FORTUNA
ADVANCED PAY STEP FOR NEW HIRE FORM
This form shall be filled out for any appointment above step 0 and in accordance with the City of Fortuna Salary Step Policy contained within the Administrative Policies and Procedures. This policy states that a newly hired employee shall be placed at step 0 of the pay schedule range established for the position. The City Manager, may, when circumstances warrant it, authorize appointment above the minimum pay level, but not higher than Step 2, except with the concurrence of City Council. No advancement of pay level shall be made above the maximum pay level established for the position in a particular range.
EMPLOYEE NAME: ______________________________
EMPLOYEE POSITION: ___________________________
RECOMMENDED STEP NO.*: ______________________
HIGHER STEP JUSTIFICATION: Complete this section to explain why employee should be placed at an advanced step. Example justifications could include time spend in similar position, unique and advanced skills for the position, etc.
_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ *If higher than step 2 please include the City Council Meeting Minutes to this form confirming the appointment step.
Requested by: ___________________________________________ Date: _____________________ City Manager Approval: ___________________________________ Date: _____________________