12-16-2020 Council Packet - Laserfiche WebLink

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Market Rate and Merit Step Increases: A 1.9% salary increase in the salary schedule is proposed for 2021. The increase in based on a weighted average of the COLA increase from a survey of cities between 5,000 and 15,000 in population (75%), and the CPI increase for the Minneapolis/St. Paul/Bloomington region from May 2019 to May 2020 (25%). The average increase for the survey of cities was a 2.5% increase, and the CPI increase was 0%. Approximately $17,400 of the General Fund levy increase relates to this market rate increase. This has a levy impact of approximately .51%. There are currently nine employees that are moving through the merit step plan. These employees receive these merit steps once per year, based on a successful performance review and funds available in the budget. Approximately $21,340 of the General Fund levy increase relates to employees in the merit step pay plan. This has a levy impact of approximately .63%. All other employees are at the top of the step plan, and only receive a market rate (COLA) adjustment. COVID-19 Pandemic The budget and the levy do not include any additional expenses related to the COVID-19 pandemic. Operating expenses (hand sanitizer, cleaning supplies, unknown expenses, etc.) will need to be expensed to existing operating budgets, council contingency, or existing fund balance. Staff will continue to monitor revenues and manage expenses such as staffing and contracted costs in our Parks and Recreation Department as the COVID-19 pandemic continues in 2021. Changes to Budget in Other Funds The budget changes to the General Fund were described in the section, Levy Changes since the Preliminary Levy was adopted in September. Since the preliminary budget was approved in September, there have been a few budget changes to funds other than the General Fund. These changes are as follows: • Special Revenue Funds (Cable Fund)-Increased transfer out to General Fund by $6,100. Made changes to the expenditure budget based on the 2021 production services contract. Added capital outlay for the cable upgrades that were not completed in 2020. • Debt Service Funds-Added the transfer out from the Notes-Fleur Royale by the transfer in to the General Fund. • Capital Project Funds-Included the 2021 projects that are in the 2021-2025 Capital Improvement Plan that was approved on November 18th. • Enterprise Funds-Included revenues based on the 2021 proposed utility rates. Adjusted expenses based on 2021 premiums for insurances and contracts. • Internal Service Fund-Revenues and expenditures have been adjusted to reflect 2021 premiums for insurance.