Agenda - Council - 08/23/2022 - Laserfiche WebLink

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Finance Director Lund stated that no property value stayed the same. Councihnember Woestehoff said his point was that the percentage of the increase for option three they would be asking of residents was moderately equivalent or parallel to the increase in their home value. Finance Director Lund said that it will be comparable. City Administrator Hagen said that last year's tax rate was just over 42% and this year they are estimating it at 41%, making it virtually the same. Finance Director Lund said this was the road portion of the budget. In regard to moving forward, she asked if Council was comfortable with preliminarily looking at doing option three for the purpose of having a starting point to go out to the residents so they can weigh in once they see their tax bill. Acting Mayor Riley asked if they can figure out the effect of option three by itself. Finance Director Lund said she can run those numbers separately. Acting Mayor Riley added that he would like to see if there was a way to run a budget of essentially decisions the Council has already made, not proposing these things, but items they have already acted on, such as the wage increase. Finance Director Lund said that in the budget notes she had done previously, a majority was personnel, and she had broken out the existing budget and the new personnel request. Outside of non -union employees, everyone is locked in at a 3% COLA, so it would come down to what is decided in regard to healthcare. She asked Administrative Services Director Lasher if that was locked into the contracts. Administrative Services Director Lasher said that it is locked in with a little bit of wiggle room depending on what happens with the rates. Finance Director Lund said that as of right now, single coverage is 100% funded which is why they are looking at about a 9% increase in regard to single coverage, which several employees are under. For family and employee plus spouse or employee plus child, the rate is split, so a 4.5% increase goes to the employee and 4.5% to the employer. She said that she could get a better summary together for the Council on this topic. Acting Mayor Riley said he is unhappy with the 25-30% increase and is not willing to move forward with it, but he also knows they have already made a lot of the decisions that factor into that. Finance Director Lund asked, in regard to the union contract, are they locked in at the 3% COLA, for everyone outside of that, do they put them in another column leaving them open for discussion. City Council Work Session / August 8, 2022 Page 3 of 19