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AGENDA ITEM – 1E MEMORANDUM DATE: November 18, 2019 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: 2020 Proposed Budget and CIP Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Staff is requesting City Council to review and provide feedback to the attached proposed 2020 Budget and CIP. The Truth-in-Taxation meeting is scheduled for December 9, 2019, where a final budget and tax levy will be adopted. Background A budget workshop was held with the Council on August 19, 2019. Staff was not directed to make any changes to the proposed 2020 General Fund Budget and Council adopted a maximum tax levy increase of 5% on September 23, 2019. The final levy and budget adoption meeting is scheduled for December 9, 2019. Discussion Wages and Benefits The 2020 proposed budget is currently being prepared assuming a 3.0% wage adjustment for all staff which is consistent with what other cities are doing in the area. Benefit amounts have been adjusted based on renewal information. Health insurance is set to increase by less than 2% and dental is set to increase by 2.9%. The city’s payment toward employee health insurance is increasing $7.50 per month for an employee on a single plan and $11.72 per month for an employee on a family plan. This is approximately a 1.3% increase or a $2,910 increase in the budget. The Foreman position has been removed from the budget but an Office Support Specialist has been added to Public Works. This resulted in a savings to the 2020 Budget of $12,510. Other changes to personnel costs include changes in the allocation between departments and funds for various positions. Total personnel costs increased by $13,020 from 2019 to 2020. The step and COLA increases were offset by removing the Foreman position from Public Works and adding an Office Support Specialist, and a reduction in the budget for work comp and pension costs.