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Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 10.4 <br />Agenda Section Meeting Date Prepared by <br />Work Session June 7, 2021 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />2022 Budget Discussion Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss 2022 budget process and provide Council feedback. <br /> <br />Background/Discussion <br />Staff is developing preliminary 2022 budgets and budget meetings will be scheduled in June/July with the <br />administrator and department directors/division managers to review their budget requests. The Council is <br />required to adopt a maximum tax levy prior to September 30 and will adopt the final budget in December. <br /> <br />Proposed Budget Schedule <br /> June 7 Council Work Session – General 2022 budget discussion and process. <br /> July/August Budget Work Sessions – Suggested Council budget Work Session dates are as follows: <br />st <br />o 1 Budget Work Session – Monday, July 26 <br />nd <br />o 2 Budget Work Session – Monday, August 9 <br />o Additional Work Session (if needed) – Monday, August 23 or Monday, August 30 <br /> September 20 Regular Meeting – Approve maximum tax levy. <br /> October/November – Continue budget, Capital Improvement Plan, and tax levy discussion. <br /> December 6 Regular Meeting – Present and adopt final budget and tax levy. <br /> <br />The preliminary 2022 budget will be developed based on the following initial estimates and may be adjusted as <br />we progress through the budget approval process: <br /> Same level of services as the 2021 budget. However, we have significantly more facilities and amenities <br />to maintain. <br /> Wages and benefits: <br />o Sergeants and 49ers union contracts are up for renewal in 2022. <br />o Patrol union contract provides a 3% increase with market adjustment based on peer cities. <br />o 3% increase for non-union employees. The Council should consider another wage study update in <br />2022 as the previous study will have been four years old. <br />o 5% increase for insurance benefits. <br />o 13% average rate increase for workers’ compensation due to public safety PTSD claims. 35% rate <br />increase is projected for police job classes and a 4.5% increase in all other job classes. <br /> The state fuel contract will be used – fuel price will start at $2.75 per gallon. <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 />