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<br /> <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 3 <br />Agenda Section Meeting Date Prepared by <br />General Business August 10, 2020 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />2021 Budget Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br /> <br />Action Requested <br />2021 budget discussion. <br /> <br />Background/Discussion <br />The following assumptions/estimates were used in preparation for the 2021 preliminary budget: <br /> <br /> The budget was developed based on providing the same level of service as in 2020. <br /> The 49ers and Sergeants unions have approved contracts for 2021 with cost of living increases of <br />2.75% with market rate adjustments based on our peer cities. The Patrol union will be negotiated <br />for 2021. Several of our peer cities are proposing the following cost of living adjustments: <br />o Ramsey – 2.75% <br />o Anoka – 3% <br />o Andover – 3% <br />o Savage – 3% <br />o Champlin – 3% <br />o Rosemount – 3% <br />o Farmington – 3% <br />In order to keep wages competitive with our peer cities, we are proposing a 3% cost of living <br />adjustment for non-union employees. The COLA and Step increases for the General Fund are: <br /> COLA Step <br /> Non-union $151,000 $53,200 <br /> Unions $129,000 $62,700 <br /> Total $280,000 $115,900 <br /> Medical insurance benefit – proposed 5% increase. <br /> Workers comp insurance – the League is projecting a rate increase of approx. 9% for renewals <br />after January 1, 2020, the city’s renewal is October 1. The increase is related to claim costs for <br />post-traumatic stress disorder (PTSD). <br /> Fuel costs - $2.25/gal. <br /> Property/liability insurance – premium rates are projected to increase an average 4.5%. <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br /> <br />