TO: Mayor and City Council
THROUGH: Dan Atchison, City Attorney*
FROM: Michele Bennett, Human Resources Assistant Director
SUBJECT:
title
City Manager Salary Range Adjustment.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
Human Resources recommends a salary range adjustment for the City Manager classification. The recommended adjustment increases the low end of the range by 4% and maintains a 9% spread within the range. This adjustment ensures the salary is competitive with comparator cities, maintains internal equity within the executive management pay plan and maintains a 10% compression level between the City Manager and Deputy City Manager classifications. The proposed action does not adjust the Interim City Manager’s salary, it simply adjusts the range for the City Manager classification, and City Council will approve any adjustments separately.
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ISSUE:
Shall City Council approve an adjustment to salary range for the City Manager classification to $295,189 - $324,707 annually effective October 13, 2025?
RECOMMENDATION:
recommendation
Approve an adjustment to salary range for the City Manager classification to $295,189 - $324,707 annually effective October 13, 2025.
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FACTS AND FINDINGS:
*The City Attorney reviewed and approved this report to avoid the potential for conflict of interest for the Interim City Manager.
In preparation for filing the City Manager position, Human Resources conducted a compensation review to ensure the City Manager classification salary range is competitive with comparator cities and equitable within the executive management pay plan.
The current City Manager salary range was approved by City Council in November 2024 and was set at $270,320 to $282,255 annually. The range was increased by the same 5% cost-of-living adjustment that non-represented job classifications received July 1, 2025, and resulted in a new range of $283,856 to $296,396 annually (a 5% spread). Actual compensation for the City Manager is approved at a public meeting by City Council and is determined through a contract authorized by the City Council, subject to annual performance reviews prior to any adjustments.
A market analysis of City Manager salaries in comparator cities (Beaverton, Bend, Eugene, Gresham, and Hillsboro) revealed that Salem’s current minimum salary range is below Beaverton and Eugene, and only slightly above two of the remaining comparator cities, despite having a larger population than all five comparator cities:
|
Comparator City |
Pop. (US Census 2024) |
City Manager Compensation |
% Difference from Comparator |
|
Beaverton |
98,302 |
$297,143 |
-4.5% |
|
Bend |
106,926 |
$245,148 |
+15% |
|
Eugene* |
178,786 |
$293,217 |
-3.2% |
|
Gresham |
111,507 |
$276,167 |
2.8% |
|
Hillsboro |
110,337 |
$277,783 |
2.2% |
*The City of Eugene is currently recruiting for City Manager with a salary range of $238,000 - $319,000.
To ensure a competitive salary for the successful retention of a City Manager, a 4% salary range adjustment to the minimum and 10% spread from the minimum to the maximum range is recommended. This adjustment would increase the City Manager’s salary range to $295,189 to $324,707 annually. This adjustment brings Salem’s City Manager salary within approximately 6% of the market average at the minimum and maintains the City’s Compensation Philosophy of no less than a 10% compression level between the City Manager and Deputy City Manager classification. The proposed adjustment allows for expanded ability to negotiate, and is consistent with the City’s Compensation Philosophy, which prioritizes market competitiveness and internal equity.
FISCAL IMPACT:
Funding for the proposed salary range adjustment for the City Manager is available through the current FY 2026 budget.
Allison Pavelek
Sr. HR Analyst