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Regular City Council Meeting Monday,August 19,2013 Page 13 free up savings to offset inflationary increases across the board for all operations and offsetting the need for additional dollars for supplies, maintenance, and pro- fessional services; with those savings already factored into the 2014 budget. Councilmember Etten questioned if staff had a slide showing how those dollars factored into those items (e.g. $400,000 in reserves used plus the $80,000 for Fire Relief Fund) and asked if staff could provide that more detailed information at the next meeting to identify where that money was going. Mayor Roe clarified that the $20,000 saved on the HRIS budget expenditure, was not a levy cost but had been taken from reserves last year. Mr. Miller noted that the actual level of existing reserves available for the 2014 budget remained in flux at this time, with staff providing their best estimates over the last week at the previous direction of the City Council. Mr. Miller provided a breakdown of where the $400,000 in reserves was ear- marked as shown below; but would find it difficult to identify where the opera- tional money was going, as it was dispersed among 100 plus programs, services and areas. Breakdown for Use of Reserve Funds Employee 2% COLA $165,000 Employee Step Increases 80,000 Mandated PERA Increase 30,000 Employee Healthcare Contribution (3% 50,000 or'h of total increase) Increase in Contracted Dispatch Ser- 65,000 vices Inflation (adjusted and reduced sales tax 10,000 exemption) TOTAL $400,000 Specific to the merit pay portion, Mr. Miller advised that this factored into and was in conjunction with phasing the 4.6% compensation study recommendations, and was netted back into the $104,585 and $40,215 for factoring in the 2.6% in- crease in January of 2014 and the subsequent 2.0%in July of 2014. At the request of Councilmember Willmus, Mr. Miller confirmed that a 3% infla- tion multiplier was used as a standard throughout the recommended 2014 budget as an initial exercise. Regarding the multiplier used for the 2013 budget, Mr. Mil- ler advised that he would need to verify the exact multiplier percentage used, whether it was 3%or not. Councilmember Willmus requested that staff provide information on the actual multipliers used for the 2012 and 2013 budgets.