During a recent government meeting, officials discussed the rising costs of employee health insurance and the implications for both employees and the city budget. It was confirmed that while the insurance rates are increasing, the percentage contributions from employees remain unchanged, resulting in higher costs for both parties. This situation will be detailed further in the upcoming budget narrative.

Alder Faulding raised a question regarding the proposed increase in the levy capacity from 2% to 3%. The rationale provided highlighted the increasing difficulty departments face in making budget reductions without affecting service levels. Notably, the fire department is experiencing early signs of service level impacts, such as potentially reducing crew sizes from four to three on fire response units. This change could hinder their ability to participate in mutual aid calls, as agreements require four-person units.

The discussion emphasized that a 2% annual increase is insufficient to maintain current service levels due to inflation and previous budget cuts over the past two decades. Therefore, a 3% increase is proposed to avoid further reductions in services. Officials noted that a robust year in net new construction could delay the anticipated fiscal challenges, allowing for flexibility in the levy increase decision.

Overall, the meeting underscored the delicate balance between maintaining essential services and managing budget constraints, with a clear call for increased levy capacity to support ongoing operational needs.