12-13-2010 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 13, 2010 Is 7:00 o'clock p.m. (6. CONTINUATION OF 2011 BUDGET HEARING, Continued) board for employee salaries and a $50 a month insurance contribution per employee. General fund expenditures have the greatest impact on the proposed tax levy. The tax levy required to fund the 2011 general fund budget is $3,932,260, which is an increase of $42,550 or 1.09 percent over the 2010 levy amount. This is a decrease of $22,720 from the preliminary budget and below the 1.74 percent limit. Mayor White noted the City has laid off a number of personnel from the police department and one planning staff member in order to reduce the City's expenditures. Bremer asked whether the 1 percent number for employee salaries includes union and nonunion employees. Olson indicated that would just be nonunion personnel and that the City would be undergoing contract negotiations at some point in the future. Olson stated the number in the budget does include an increase for union and nonunion personnel at 1 percent. Bremer asked what the rough percentage of union versus nonunion workers is. Olson indicated it would be approximately 50150, with the union workers being part of the police department. • Bremer asked what the City is seeing as far as health insurance increases. Olson stated overall insurance costs are going up 10.22 percent and the City's budget has a proposed increase of approximately 5 percent. The City's budget proposes paying approximately one -half of the increase in insurance costs and approximately one -half of the premium for family coverage. Murphy noted the City is pooled with other cities to help keep the costs down. Bremer asked what the cost savings would be if the City did not budget a 1 percent increase for nonunion workers. Olson indicated it would be approximately $24,000. Olson stated if the City went with a 0 percent increase for nonunion workers, it would put the City in a stronger position when it came time to negotiate with the union. Bremer commented that if the City does not budget a 1 percent increase for nonunion workers and a 1 percent for union workers, the reality is that the City's,employees may look elsewhere for work and/or unionize, which is not something the City would benefit from. Bremer asked if City staff could be unionized. Mattick stated typically only police departments are unionized, followed by public work departments, but that other employees could unionize if they saw unequal treatment among bargaining units. Currently among other cities that have not given union workers some type of increase, the unions have challenged is that. Mattick noted the City would experience some cost if the union elected to mediate their contract. McMillan asked what the correct debt service number would be. Page 3 of 27