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Regular City Council Meeting Monday, December 2, 2013 Page 8 Mayor Roe noted that the last zero increase years for employee COLA were dur- ing recession years; and several years had only seen 1% or 2% increases. Market Rate Mr. Miller advised that the City compared to peer cities for certain skill sets for employees in the market place, using the peer group average. While originally proposing that the City make adjustments at 100% of that average, Mr. Miller noted that the City Council established a policy to set that at 98% of the peer av- erage. Councilmember McGehee clarified that this study had been done by an outside consultant, and not performed by City staff. Future Projections for Upcoming Decade When reviewing the current levels of services and programs, Mr. Miller noted that the City had made a number of structural changes and addressed its long-term Capital Improvement Program (CIP) assets. If nothing was to change and there were no expansions of programs, or no new staff added to improve services to the public, Mr. Miller opined that he would then expect future increases to mirror in- flation versus the more substantial increases felt over the last few years in getting back to a sustainable structural budget. However, Mr. Miller noted that this was up to future City Councils to make that policy call; with those policies determin- ing whether budgets would be inflationary or above, or offset by reductions. As part of the 20-year CIP, Councilmember McGehee noted that ongoing mainte- nance had not been fully funded in the past, but with the CIP Asset Program in place, she was anticipating more maintenance monies and maintenance of those assets than in the past. Mayor Roe noted that, as part of the philosophy in recent changes made in utility rates and property tax collections to cover those capital costs, the City had prelim- inarily projected twenty years into the future if the City took care of what it had. In that case, Mayor Roe noted that many funding sources would have been at zero or below; with the current 20-year CIP proposed to sustain the City at a reasona- ble level above zero. While this effort is not grandiose, Mayor Roe noted that each annual budget process would include a review and update of the 20-year CIP to keep on that trajectory. Mayor Roe clarified that new pathway construction and building replacements had not been included in the CIP, as buildings had his- torically been paid by borrowing money(e.g. bonding). Identification of Peer Cities Mayor Roe suggested that staff respond later and provide the identity of those six- ty-two peer cities used for levy comparisons in writing and on the City's website. •