Eloy City Council Work Session - January 26, 2026

On January 26, 2026, the Eloy City Council held a work session to receive a presentation and discuss the findings of the city's employee compensation and classification study. The study was conducted by HR&A consultants to ensure competitive, equitable, and fiscally responsible pay structures. No formal votes were taken; the discussion will inform budget decisions at an upcoming retreat.

Discussion Items

• Employee Compensation and Classification Study Presentation: Consultants presented a comprehensive market analysis comparing Eloy’s pay ranges to relevant labor markets (public sector, private, and non-profit in the region). Of 61 jobs studied (out of 90 total), 25 positions were found to be 5% to 9.9% below market, and another 25 positions were more than 10% below market. The remaining jobs were within ±5% of market and considered aligned. Key recommendations included updating the pay structure (grades 101–125 with 5% step separations, 40% spread for blue-collar, 50% for professional/management) and providing 3–5% salary increases for all employees, with larger adjustments for those significantly below market.
• Council Discussion and Concerns: Councilmembers raised several points:
  • Inflation vs. wage growth: A councilmember noted that past high inflation (8.3% in 2022) eroded purchasing power, and asked whether wage increases truly keep up. The consultant explained they use the Employment Cost Index (ECI) as a more stable measure, currently at 3.6%, and that real wage increases this year were only 1.1% after inflation.
  • Competitive pressure: A councilmember expressed concern about the impact of the new Santan Valley incorporation, which will increase competition for talent, especially in blue-collar technical jobs (public works, utilities). The consultant agreed that new entities typically drive up wages, reinforcing the need for competitive pay to retain institutional knowledge.
  • Health insurance costs: Councilmember Galindo asked about projected benefit increases, noting that any raise could be eaten by higher premiums. Staff (Sylvia) reported that initial projections show double-digit increases, but the city has historically secured strong rates. The city’s health benefits—including a $1,000 maximum out-of-pocket for families—were highlighted as a major retention tool, even outweighing salary differences.
  • Retention vs. recruitment: A councilmember questioned the balance between salary and work environment. The consultant noted that research shows supervision and engagement are more critical than money for retention. Staff emphasized the city’s employee appreciation efforts and the value of low premiums and co-pays.
• Timing: Staff indicated that final cost figures for compensation and benefits will be presented at the upcoming budget retreat. Health insurance numbers will be known in 30–45 days.

Key Outcomes

• The council received the presentation and discussion, with no formal action taken.
• The consultant’s recommendation of 3–5% raises and targeted adjustments for below-market positions will be factored into the budget retreat discussions.
• Council directed staff to return with more detailed cost projections, including the impact of health insurance increases, before making final compensation decisions.
• The meeting adjourned with a note that the regular council session would follow in 26 minutes.