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<br />WS – Item #6 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 6 <br /> <br /> <br />Date: July 6, 2020 <br /> <br />To: City Council <br /> <br />From: Sarah Cotton, City Administrator <br /> <br />Re: 2021 Budget Assumptions <br /> <br /> <br />Background <br /> <br />The management team is in the process of preparing the first draft of the 2021 budget. <br />There are several assumptions that are made early on in the budget process and the <br />primary objective for Monday night’s meeting includes a walkthrough of some of the <br />budget assumptions for 2021, as well as an opportunity for staff to seek guidance from <br />the City Council on outstanding assumptions. Finally, the Council may wish to <br />communicate any priorities staff should be aware of as we finalize the first draft of the <br />2021 budget. <br /> <br />Cost of Living Adjustment <br /> <br />Seventeen out of twenty-three comparable cities responded to a cost of living adjustment <br />survey (COLA). Below are the results. The financial impacts of the Coronavirus <br />pandemic are not yet known. The City is not locked into COLA increases for the 2021 <br />year through union contracts. All four of the City’s union contracts are up for <br />negotiations this summer. <br /> <br />Organization 2021 COLA <br />Savage Planned for 3% - Now undecided. <br />Shoreview Undetermined - Wants to remain competitive. <br />Chaska Undetermined - Upcoming negotiations. <br />Ramsey 2.75% <br />Prior Lake Undetermined - Upcoming negotiations. <br />White Bear Lake Undetermined - In negotiations. <br />Champlin 3% <br />Rosemount 3% (settled contracts for 2021) <br />Farmington 3% <br />Hastings Undetermined <br />New Hope 3% (settled contracts for 2021) <br />Northfield Undetermined <br />Columbia Heights 3% (settled contracts for 2021)