Larimer County staff peg 2027 compensation plan at 3% salary impact, 3.7% with benefits

Larimer County’s recommended 2027 employee compensation package would carry about a 3% salary impact for budget purposes and about 3.7% when health insurance and benefits are included, county staff told commissioners Wednesday. The recommendation calls for a "2 and 2" plan: a 2% market adjustment at the start of the year and a 2% merit increase during the year.

Human Resources staff said each 1% pay increase has about a $1.9 million budget effect. Eileen Brittingham said about 55% of that cost would be paid from the general fund, with the remaining 45% coming from other county funds. Commissioner John Kefalas and staff noted those other sources include special revenue funds and sales-tax-supported funds such as those tied to natural resources.

Bridget Paris said the plan amounts to a full 4% increase in base pay for employees by the end of 2027, but a smaller hit to the annual budget because merit raises are phased in over the course of the year. "Because merit increases happen throughout the year, the budget salary increase cost is estimated about 3%," Paris said. Kefalas later confirmed that budgeting assumption, asking whether the county should treat the proposal as a 3% increase for budget purposes; staff replied that it should.

Kefalas also said the county is adding health insurance and benefit costs on top of that figure, bringing the total to about 3.7%. He said those numbers are already built into the county’s working budget plan so departments can prepare their August budget submissions. Staff said the county makes compensation decisions early in the budget cycle to give departments time to plan.

Commissioner Jody Shadduck-McNally said she supported the recommendation and thanked staff for the analysis behind it. Kefalas also backed the proposal, saying the county had already made adjustments in other areas to ensure there is funding for the compensation package.