08-26-2013 Council Work Session Packet

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• Septic Program — The Council requested information on the amount of time that is spent administering the program. It is estimated that the Septic Inspector spends 25% of his time administering the septic program. In addition,the Administrative Support Assistant spends an estimated 5%of her time updating the pumping records database. The Utility Billing clerk also has time spent processing the annual billing. The other direct expense for the program is postage. The total direct expenses for the program are $26,750. This amount does not include any allocation for expenses for the required office space or equipment. The Council was also interested in the cost of a septic permit which is $200. A report for total septic permit revenue for 2012 and 2013 year-to date is attached. • Union Wages — Negotiations with the labor unions have not been started at this point. In anticipation of some level of negotiated increase,the Council directed that$38,500 be added to the contingency line item. Each 1% wage increase amounts to an increase of$21,350. A total of $42,700 has been allocated in the contingency line item which will cover a 2% wage increase. The Council also requested copies of previous arbitration awards. These are included as attachments D and E. • Non-Union Wages—Council requested the development of a new wage scale that would allow for wage increases that were not cumulative. The framework for this proposal will be provided for your review at the August work session. There is currently $35,203 available in the contingency account. The budget only has funds for up to a 1.9% increase for non union employees. Each 1% increase amounts to $18,000. • Health Insurance—The Council directed staff to make a recommendation for an increase in the insurance contribution. Insurance premiums are increasing by 13.3%. Depending on the high deductible plan that is chosen,this is between an increase of between $90 and $100. The draft budget has been prepared with an increase of$50 for employees that choose family coverage. Employees that choose single coverage or waive insurance will not receive a contribution increase. In addition,our agent has indicated that we should discontinue offering the additional $50 per month amount for employees that waive insurance. This recommendation is being made based on the current interpretation of the Affordable Care Act provisions. The final determination has not yet been made. • Additional Newsletter—The budget has been prepared to accommodate three newsletters per year. A majority of the increase is for postage. Printing and Publishing was also increased very slightly. • Westonka History Museum — The Council decided not to fund the request. A draft letter informing the museum of the decision is provided as attachment F. • Street Maintenance Funding—This was not discussed at the June work session. An Operating Budget decision form is included for this issue.