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Forget all the crap about the salary range, municipal situation with no flexibility, etc. These are like rules...meant to be broken. Where there is a will, there is a way.....higher title=more money; split the job; combine the salaries, take it out of the water cooler budget; whatever. If they want you, they will find a way to make it work.
Your job is to say I am flattered that you extended an offer. I really would like to work for XYZ. The salary offered is a little below my needs to leave my current employer. I would accept the position if the salary were whatever, plus $15,000. When they say they can only get it up to whatever plus $10,000, you say thank you for trying to do what you could, I really wish to work for XYZ and will accept the whatever plus $10,000 offer.
Don't even think about going into all that other rubbish you were talking about. If this, or if that....nobody cares. You need to have whatever plus $10,000 to take the job; that is all that you should focus on and don't go making it a sympathy ploy. And don't cave for the 'if it works out we will see what we can do at the annual review in 2023'.
I completely agree. This is exactly how I would approach this.
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