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Page 1 of 4 <br /> <br /> <br />AGENDA ITEM – 1E <br /> <br />MEMORANDUM <br /> DATE: November 15, 2021 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: 2022 Proposed Budget and CIP <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> Council Should Consider <br />Staff is requesting City Council to review and provide feedback to the attached proposed 2022 <br />Budget and CIP. The Truth-in-Taxation meeting is scheduled for December 13, 2021, where a <br />final budget and tax levy will be adopted. <br /> <br /> Background <br />A budget workshop was held with the Council on August 16, 2021. Staff was directed to make a <br />few minor changes to revenues and expenditures, and Council adopted a maximum tax levy <br />increase of 4.5% on September 13, 2021. The final levy and budget adoption meeting is scheduled <br />for December 13, 2021. Discussion <br />Wages and Benefits <br />The 2022 proposed budget is currently being prepared assuming a 3.0% wage adjustment for non- <br />union and union staff. There was a survey completed of surrounding communities and most were at <br />3.0%. It is important for the City to remain competitive in the marketplace. Benefit amounts have <br />been adjusted based on renewal information. Health insurance is set to increase by about 9.0% and <br />dental is set to increase by 3.3%. The city’s payment toward employee insurance is increasing <br />$47.04 per month for an employee on a single plan and $91.39 per month for an employee on a <br />family plan. Overall, the city cost for insurance is increasing $20,460. The number of positions <br />included in the budget is decreasing by one due to the elimination of the Recreation Coordinator. <br />Also, there are changes to some of the wage allocations and a couple of new position titles with <br />different grades are included in Public Works and Community Development. <br /> <br />Total personnel costs decreased by $8,570 from 2021 to 2022. The breakdown of this increase is as <br />follows: <br />2022 Step increases/position changes $(99,040) <br />2022 COLA adjustments $69,010 <br />Health insurance increase $20,460 <br />Work Comp increase $1,000 <br /> TOTAL $(8,570) <br />