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2020 Budget – Page 1 <br />MEMORANDUM <br />To: Mayor Walsh and Orono City Council <br />From: Ron Olson, Finance Director <br />Subject: 2021 Budget <br />Date: June 22, 2020 <br /> <br />Attachments: <br />2021 Budget Information <br /> <br /> <br />Staff has begun work on the 2021 budget. The expenditure information that has been provided <br />has been prepared by each department and reviewed with the City Administrator. Staff is <br />looking for guidance from the Council about the numbers provided. This memo focuses on the <br /> <br /> <br />Expenditures: <br /> <br /> <br />1. The police budget includes a 3% increase for wages that is based on the amount in the <br />current labor agreement. This is a $92,500 increase in the General Fund. For the <br />Local 12 and local 49 employees, the budget has also been prepared with a 3% <br />increase. This is based on the assumption that they will be expecting at least the same <br />amount as the police unions. Non-union employees are included with a 3% increase <br />for consistency. In dollars, the increases are: Local 12 - $7,600; Local 49 - $3,600; <br />and Non-Union - $9,500, for a total of $20,700. The CPI-u for Minneapolis/St. Paul <br />for the last 12 months is 0.0%. Staff is looking for direction on budgeting wages. <br /> <br />2. The City generally pays 50% of the increase in family insurance premiums. This <br />amount is required in the Local 12 and 49 contracts. We are currently in in an RFP <br />process for health insurance and do not know what the insurance premiums are for <br />next year. The budget information has been prepared with no increase in the city <br />contribution. Each $10 change in the city contribution equals $2,800. <br /> <br />3. 2020 was an election year while 2021 is not. This results in a $38,100 decrease in the <br />budget for 2021. This is only a one year decrease and in 2022 it will increase again. <br /> <br /> <br /> <br /> <br /> <br />