HomeMy WebLinkAbout06272016 City Council Work Session Notes - Cola & Merit Increases . Q
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CITY COUNCIL WORK SESSION
RE: Cost-of-living, Merit increases, Calls on General Fund budget and reserves
June 27, 2016
Sales Tax Revenue:
After audit adjustments, sales tax revenues in 2015 exceeded 2014 by$348,289; after 25%transferred to
healthcare, General Fund's share of this increase is$261,217.
General Fund 2015 Financial Performance:
2015 (Net Revenues+Transfers-In)exceeded (Expenditures+Transfers-Out) by a total of$321,309.
General Fund Undesignated Reserves total $4,718,517
This reflects 4.17 months' reserves. The General Fund Reserve Policy establishes a goal of between three to six
months' reserves($3.4 Million to$6.8 Million).
Future calls or unbudgeted calls on General Fund reserves:
-. Lowell Canyon Tunnel cost share—the City's share of the costs to identify and evaluate alternative
options for flood diversion to mitigate flood risk is$1.65 Million, excluding construction costs
-. City Hall carpet asbestos mitigation and replacement-$270,000
-. Orion legal fees— $45,000 to-date
-. Waterfront erosion -$80K-$100K waterfront park; $200K—sealife center
-. Other—Enterprise Fund deficits, if any; overtime reduced in current budget, Snow River, etc.
Future State budget cuts:
-. PERS—if the State of Alaska increases the employer contribution rate above 22%as was proposed by
legislation in the past legislative session, each 1%increase in the rate adds more than$50,000 cost to City.
-. Revenue Sharing($216K per year eventual reduction)
-. Community Jails
Employee wage options—cola and/or merit increases:
1%cola or 1%flat* =$48K(General Fund only) or$64K (all Funds)
Employee wage options- merit increases:
-. 2.5% increases; apply to 65%of employees(30 of 85 are at the end of the wage scale)
$63K(General Fund only) or$79K(all Funds)
Employee wage options cola plus merit:
-. 2.5%merit+ 1%cola =$112K (General Fund only)or$144K(all Funds)
* One-time flat increase may or may not apply to temporary employees; does not add to the base rate in
subsequent years.