SPRINGFIELD — It is no secret that the City of Springfield is facing a budget dilemma. So, how does the City balance employee wage adjustments with long-term financial challenges?
“Springfield faces a growing structural budget gap that threatens the city’s ability to maintain essential services,” reads a statement from the City’s website. Actions to combat this financial issue include reducing the library budget by $500,000, implementing a shared payroll tax between employees and employers, and increasing current levies.
City manager compensation was on the agenda for the Nov. 24 work session. Human resources director Chaim Hertz presented the council with a few options for adjusting Nancy Newton’s wages. The Council considered a 5% wage increase for Newton, balancing market alignment with fiscal challenges.
According to Newton’s employment contract, the council considers a wage adjustment annually.
Part of her role in the city is to ensure the city’s policies and directives that are determined by the council are effectively implemented. She also provides administrative leadership by overseeing public works, police, and fire services.
Hertz guided the council in determining whether to apply a cost-of-living adjustment (COLA) and, if so, what COLA to apply.
Hertz’s presentation included information on a compensation survey comparing Newton’s total monthly compensation with that of seven Oregon cities of similar size and scope. According to the meeting’s agenda, the Springfield city manager’s total equivalent monthly compensation ranks seventh among seven comparable agencies. The median is $22,812 per month, placing Springfield approximately 10.5% below the market median.
Hertz looked at the cities of Tigard and Medford, whose city managers’ monthly compensation totaled $22,557 and $22,703, respectively.
Newton declined a pay increase in 2024, widening Springfield’s position below the market median.
“It’s reflected in the materials that last year I requested not to have the salary increase. I didn’t want anybody in our community to feel that this governing body (City Council) made that decision. They did ultimately make the decision, but based on my request,” Newton said.
Possible options for the council to consider were no adjustment, a cost-of-living adjustment (COLA) of 2.93%, a market alignment of 10.5% to match the market median, which would be an annual increase of approximately $25,232, or a deferred or phased adjustment that is implemented incrementally or tied to performance goals.
Her annual salary before any changes was $218,462.40.
“I definitely do not want us to keep falling behind,” Councilor Kori Rodley said. “I think that Nancy has been a great employee and a really good partner as we work through some really challenging times. So I would like to look at … how we get this to market alignment,” she said.
Councilor Alan Stout suggested, at a minimum, implementing the COLA and slowly moving towards a market alignment adjustment.
“Getting to the market rate is a goal that is probably going to take over a couple of years. I would support going with 5% that way we’re making some sort of progress toward it, given the fact that we’ve still got serious fiscal challenges, and we’re going to be asking a lot from this community,” Mayor Sean VanGordon said, looking for a balance between market alignment and the short-term budget challenges the City is facing.
“This is always an awkward conversation to have,” Newton said. “I personally would not feel comfortable accepting more than that, given where we are as a city, in our budget challenges, the challenges facing our community and state. I’m very committed to this city. I’m proud to work here, and proud of the people that live here, and they show up time and time again for us, and I want to show up for them,” she said.
During the Dec. 1 city council meeting, the council unanimously approved adjusting the city manager’s salary by 5%, raising her annual salary to $229,382.40
The financial impact of the 5% increase is $12,016 for FY26, with ongoing costs in future years.
