Agenda Packets - 2010/06/07 - Laserfiche WebLink

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any amounts for LGA in the budget. This will create a significant hole in the General Fund budget for 2011. Inflation remains low at present and the state levy cap will be 1.68% for 2011 compared with .76% for 2010 and 3.9% for 2009. The state levy cap will be in effect thru 2011. The City’s charter cap is more restrictive and only excludes debt service and capital project levies from inclusion in the cap calculation. A 1% levy increase is $40,994. The maximum the levy could increase under the City Charter is 3% – 4% depending on inflation. ($122,982 to $163,976) The City is presently negotiating with three of the four bargaining units for the 2010/2011 contract years. The public works bargaining unit has agreed to no wage increase for 2010 and 2011. The 2010 budget provided for no cost of living wage increase. State aid reductions that have been passed down to the City have negatively impacted the General Fund. Many of our residents are suffering from the poor economy and lack the ability to afford a significant tax increase. The Council has directed staff to offer no cost of living for 2011. Health insurance cost increases are not known, we will receive our rate notice in mid August. The impact to the budget will depend on the labor contracts. The City provided an increase of $10 per month for the public works bargaining unit and non-union employees and has offered the same to the other bargaining units. The employer share of PERA will increase by .25% to 7.25% in 2011 for Coordinated plan members and .3% to 14.4% for Police which will add about $9,000 to personnel costs. This is a result of 2010 legislation to help stabilize those pension funds. PERA coordinated rates have increased from 5.53% in 2005 to 7.25% in 2011, police PERA rates have increased from 9.3% in 2005 to 14.4% in 2011. Personnel costs will increase by about $33,000 as a result of step increases, PERA rate increases, and estimated health insurance increases which affects those with single coverage. (10%) The police department will have a retirement at the end of July 2010, this may be an opportunity to review the staffing levels in the police department. The payroll cost for 50 employees is $2,175 per hour, $17,400 per day, $87,000 per 40 hour week. County dispatch fees will increase $11,825 or 18.1%. Fire department costs are projected to remain flat in 2011. Information technology costs will not increase for 2011. Fuel prices were budgeted at $3.25 for 2010 and that should be a good rate for 2011.