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Attachment 1 321 Compensation Adjustments 322 As the City Council is aware, the City implemented a new compensation plan as part of the 2024 323 budget. The implementation costs for the new compensation plan were a major driver in the 324 increase in the budget and levy for the 2024 budget. There will continue to be cost impacts in the 325 2025budget as non-union employees advance through their wage steps. This is always a factor in 326 each year’s budget, but I am mentioning it as more employees will be receiving step adjustments 327 in 2025 as a result of the new compensation plan. 328 329 The following is a listing of the compensation adjustments that will impact the levy in the 2025 330 budget. 331 332 Employee Step Increases and Employee Insurance Increases 333 As part of the city’s current compensation plan, non-union employees that meet work goals and 334 provide satisfactory work receive wage increases based on a 7-step grid. Union employees also 335 receive step increases in a similar manner, with each contract providing for a different step system. 336 The new cost represents the tax levy needed to cover the expected step increases in 2025 for staff 337 338 Another driver for compensation in the 2025 budget will be outstanding union contracts. Four 339 union contracts will expire at the end of 2024. They are the police unions for the Deputy Chief, 340 Lieutenants, and Sergeants, and 49ers union for public works and parks maintenance workers. 341 Negotiations are currently underway for wage adjustments using the same comparable cities used 342 in the classification and compensation study. Funding has been included in the 2025 budget 343 proposal to cover the expected costs. Final numbers for all unions should be known by this fall. 344 345 Employer costs for a 5% health insurance increase for employees are also included as part of this 346 number. 347 348 Employee step increases and city-covered employee insurance increases are $624,230, with 349 $452,087 paid from the new tax levy. 350 351 Impact to tax levy: An increase of $452,087 352 353 Employee COLA (3%) 354 Going into 2025, it appears our comparable cities will be implementing a cost-of-living 355 adjustment of 3% for their union and non-union employees. Roseville must also adopt an annual 356 cost-of-living adjustment to maintain our place in the market. If a smaller or no COLA is given, 357 Roseville will fall below the market, despite implementing the classification and compensation 358 study last year. 359 360 With that in mind, for union contracts going through 2025, a cost-of-living adjustment (COLA) of 361 3% has been incorporated into the 2025 budget. The same 3% COLA has been allocated for the 362 union that have contracts up at the end of 2024, but the final COLA is still yet to be negotiated. 363 This budget also has incorporated a 3% COLA for non-union staff as a matter of parity. The total 364 cost of the 3% COLA to all city employees is $656,703 with $487,843 of the amount to be paid 365 from new tax levy. 366 367 Impact to tax levy: An increase of $487,843 368 12 Qbhf!236!pg!417