Staff recommends City Council approve amendments and adjustments to the FY22 budget as described below to cover the additional 1% above the Teamster Cost of Living Adjustments consistent with the labor contract. Additionally, adjust the budget for non-bargaining COLA consistent with the Teamster's Union.  

On June 28, 2021, the City Council adopted a budget with an assumed 2% Cost of Living Adjustment (COLA) for City Employees. On July 7, 2021 the City and Teamster Union reached a tentative agreement, which included a negotiated COLA of 3%.
On September 13, 2021, the City Council will be asked to approve the Teamster Union contract. This budget adjustment will cover the additional 1% for both Teamster and non-bargaining employees for FY22.

City Council may:

• Approve the attached budget amendment or,
• Not Approve the budget amendment, which would require staff to reduce budgets to cover the additional costs over what was budgeted in FY22.

The funds impacted by this total increase of $352,571 are provided below. Rates and charges are set sufficiently to cover the cost of the increase in all funds except the General Fund and Public Safety Fund (utility rates, assessments and other fee based divisions have consistently used ~3% as an estimated annual wage increases). However, in the General and Public Safety Funds expenditures budgeted in FY22 will need to be shifted to cover the additional 1%, as there is not sufficient revenue to cover the additional need.  The following adjustments will be used to cover the increased cost of $143,329, and no budget amendment will be needed for these two funds. The expenditures include vacancy savings from positions being held open (CE Manager, P.I.O., City Attorney, other vacant positions), reduced election costs as a result of no municipal primary election in 2021, and a small increase in tax revenue over the estimated budgeted amount.
 

Fund Name	Amount
Airport	37,845
Building	11,404
CDBG	3,770
City Attorney Grants	4,759
Facilities	3,704
Fire Grants	1,284
Fleet Services	12,351
Gas Tax	713
Information Technology	16,396
Library	20,111
Municipal Court Grants	1,217
Park District 1	2,048
Parking	6,318
Planning	10,981
Police Programs	621
Property & Liability Insurance	943
Public Works Administration	13,944
Public Works Engineering	21,347
Solid Waste	43,693
Street/Traffic Operating	32,720
Telephone	1,386
Transit	34,465
Wastewater	31,627
Water	38,924