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2016 Budget – Page 4 <br />Wages <br />The Council has received a draft copy of the compensation study and has not yet had a chance to <br />discuss the study. However, with personnel expenditures representing 60% (77% including <br />contracted services); a decision on wages will be very important in the budgeting process. <br /> <br />Wages for the police unions were negotiated as part of a three year labor contracts that were <br />effective 1/1/2014. The union wage increase is 2.75%. The non-union 2015 total increase of <br />2.5% included a one-year 1% lump sum payment. Unless the council chooses to make this <br />payment permanent, non-union employee wages will be decreased by 1% on December 31. <br /> <br />Health Insurance <br />The contribution that the City makes toward health insurance represents a significant General <br />Fund expenditure. In 2015 the contribution is $1,165 per month for families, and $915 per <br />month for individuals and waivers. Union employees choosing family coverage will receive an <br />additional $90 per month. It is the past practice of the City to provide the same insurance <br />benefits to union and non-union employees. <br /> <br />Increased Street Maintenance <br />Staff would like to fund routine street maintenance out of the Street Department budget. This <br />has been discussed with the Council at a number of work sessions. Staff would like the Council <br />to discuss if they agree that this would be the proper budget for street maintenance. This <br />budgeting change could be phased in over time. A road improvement levy could also be <br />considered as a funding source for this need. <br /> <br />Capital Improvement Plan (CIP) <br />The City has adopted a formal CIP. While funding is available in the near term, funding for the <br />long term is inadequate. Funding for the Improvement Equipment Outlay Fund is a transfer from <br />the General Fund. Increasing the transfer will require an increase in the property tax levy. The <br />council could consider a specific tax levy for any of the funds that provide CIP Funding. <br /> <br /> <br />Council Goals <br />The City Council has been working on setting their goals for 2016. The Council should <br />consider how to accomplish these goals within the 2016 budget. <br /> <br /> <br />