07-22-2019 Council Work Session Packet

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could decide to budget for the expected revenues and then increase the amount transferred to the Equipment Improvement Outlay Fund or the Pavement Management Fund. Expenditures: Tncrea�e� 1. A 2.5% COLA increase — which is the amount in the Local 12 and local 49 contracts — totals $112,936. This number may change based on the police contract currently being negotiated. Scheduled step increases total an additional $39,132 2. The City generally pays 50% of the increase in family insurance premiums — required in the Local 12 and 49 contracts — this year the premium increase is $252/month so the Cities contribution increase is $126/month. This totals an additional $35,000. 3. 2020 is an election year. The 2020 budget will see an increase in election expenditures of around $22,000. This is a one year increase and 2021 will see a decrease. 4. The City's liability insurance is increase by $40,000 due to increased premiums for police and a poor experience modification factor (1.35) due to land use law suits. 5. The 2019 budget included an amount of $100,000 in the Contingency Line Item. This amount can be reduced and used to cover some of the 2019 increases. Underfunded 1) As the Council is aware, long term funding for roads needs to be secured. To adequately fund the projected 2020 projects, the Pavement levy was projected to increase to $750,000, which is an increase of $205,550. 2) Long -Term Funding of the CIP has not been identified. Issues for discussion: Tax Levy Staff is requesting guidance on the amount that the Council is comfortable with for a tax levy increase. Wages Staff is requesting guidance on the amount of the annual wage increase, if any that the Council would like to see included in the draft budget for non-union wages. The total increase identified above includes a 2.5% increase. The above information also includes an estimated 2.5% increase for the police contracts. 2019 Budget — Page 2