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Council splits on raises; workshop declines across‑the‑board 3% increase, debates covering 8.1% insurance rise
Summary
At the Aug. 11 budget workshop councilors debated a staff proposal for a 3% across‑the‑board pay increase and whether the city should absorb an 8.1% increase in employee health premiums; council direction was mixed and staff recorded opposition to raises during the workshop.
City staff told the council at the Aug. 11 budget workshop that a 3% across‑the‑board salary increase would add roughly $660,000 to the fiscal 2026 budget and that health‑insurance premiums were projected to rise about 8.1 (an estimated $170,000).
City Manager Don Rosenthal explained the figures and asked council for direction. The proposal would have two distinct effects: (1) cover the insurer’s premium increase so employees do not realize a pay reduction through higher benefits costs, and (2) a separate 3% across‑the‑board raise for…
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