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Attachment 1
<br />On the following pages there is more detailed information and estimates of the costs staff
<br />anticipates in the 2027 budget. Please note that the numbers indicate the total budget impact
<br />on all our governmental and enterprise funds. Once the 207 expenditures and non-tax levy
<br />revenues are known, the needed tax levy increase can be determined.
<br />
<br />Personnel Cost
<br />Personnel costs for 2027 are projected at $38,685,677.43, an increase of $3,359,759, or
<br />9.51%, over the prior year. Most of this growth is driven by contractual wage obligations
<br />across multiple bargaining groups, COLA assumptions, non-union employee step increases,
<br />and health insurance increases. Governmental Funds account for $35.95 million in personal
<br />costs, reflecting a 9.77% increase, while Enterprise Funds total $2.74 million in personal
<br />costs, increasing by 6.27%.
<br />
<br />A substantial portion of personnel spending is tax-supported ($31,576,841), with the
<br />remaining costs allocated to fee-supported operations including Utilities ($2,735,489), the
<br />License Center ($2,293,994), Planning and Code Enforcement ($1,607,953), and other
<br />fee-supported services ($471,400.72). This distribution underscores the City’s continued
<br />reliance on both levy and service fee funding to support staffing needs across operations.
<br />The increase also reflects wage dynamics across union and non-union groups. Non-union
<br />personnel cost total $14.75 million in 2027, assuming 3% COLA. Within public safety, Police
<br />Officer wages total $11.32 million, driven in part by a new wage schedule effective January 1,
<br />2027, which includes a 6.10% increase. Additional cost pressure comes from two budgeted
<br />promotions to Sergeant and seven officer positions budgeted at higher pay steps. Command,
<br />supervisory, and Chief-level positions also reflect a 3% COLA assumption. Several police
<br />union contracts remain unsettled; current wage schedules and a 3% estimated COLA have
<br />been used for the 2027 estimate.
<br />
<br />Fire personnel costs total $6.39 million, with the 2027 projection incorporating 3% COLA
<br />and eight promotions across the Fire Captain, Lieutenant-Paramedic, and
<br />Firefighter/Paramedic ranks. As with Police, the IAFF contract is not yet settled; projections
<br />use current agreements with the standard COLA assumption.
<br />
<br />Other represented staff include the IUOE Local 49ers, totaling $3.66 million, and projected
<br />overtime and temporary wages amounting to $2.56 million.
<br />
<br />Collectively, these personnel cost drivers reflect the City’s ongoing commitment to
<br />maintaining competitive compensation, filling essential positions, and supporting internal
<br />career progression while responsibly planning for unsettled labor contracts. The increases seen
<br />in 2027 are consistent with labor market pressures across public sector organizations and
<br />reflect the operational needs of a growing and service-oriented community.
<br />
<br />Supplies and Materials
<br />Projected total costs for Supplies and Materials are $2,105,180.09, representing an increase of
<br />$52,775, or 2.51 percent. Within Governmental Funds, costs total $1,529,640.09, reflecting an
<br />increase of $42,775 (2.88 percent). Most departments were budgeted assuming a standard
<br />three-percent increase. Enterprise Funds (Water, Sewer, Stormwater, and Golf) total $625,540,
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