Council reviews $1.34 million budget amendment to cover union wage reopeners; administration proposes calendar changes

Salisbury officials briefed the council on Aug. 11 about a requested budget amendment to cover additional salary costs related to recently negotiated union side letters and wage reopeners. City staff said the unbudgeted fiscal impact across city funds totals about $1,336,784.

Finance Director Sandy Green said the changes followed side-letter wage reopeners negotiated after the FY 2026 budget was adopted. Staff told council the increases included an additional step increase effective July 2025 and an adjustment to the fire department pay scale (step increments from 2% to 2.25%), producing unbudgeted costs in the general fund, water and sewer fund, stormwater fund and parking fund.

Green presented a proposed ordinance to appropriate roughly $1.34 million across funds: approximately $1,000,188 in the general fund; $143,566 in the water and sewer fund; $2,949 in stormwater; and $2,003 in the parking fund (total rounded to $1,336,784). Council members and administration discussed process changes to reduce the need for after-the-fact budget amendments.

Administration staff said the timing of negotiations—currently tied to the labor code’s schedule—often leaves limited budgetary information available during bargaining. Council asked staff to return with options to change the calendar (for example, starting negotiations in spring to give staff and council more budget context) and to consider other mechanisms such as arbitration approval by council or formulas tying wage increases to revenue projections.

Council asked administration to draft options quickly so the city can make any calendar changes in time for the next round of bargaining. Members emphasized a desire to support city employees while ensuring wage increases remain fiscally sustainable.