Le Mars council approves $155,000 pool for non‑bargaining wage increases

Le Mars City Council approved a $155,000 pool of funds to cover non‑bargaining employee wage increases for fiscal year 2026, the council decided after questions about funding sources and how raises would be distributed.

City staff said the pool is a cap and not a guarantee that the full amount will be distributed; raises are to be funded through individual department salary lines in the general fund and are to be awarded based on performance reviews. Council members pressed for clarity on whether raises under the pool would match bargaining‑unit increases, and on longer‑term budget impacts.

The proposal reflects this year’s bargaining agreement, which staff said adds $1 per hour plus 5 percent to bargaining‑unit wages; council members and staff said that formula increased the projected cost for non‑bargaining positions compared with prior years. Speakers noted that the pool for last year was $95,000 and the year before that was about $83,000. City staff said the $155,000 figure is typically treated as a maximum and the administration will return to the council if it needs to exceed that amount.

Council discussion touched on budget capacity. A staff member said the general fund is currently in a modest surplus, and another council member said the current surplus is roughly $50,000. Several members said they were reluctant to approve recurring increases without seeing a fuller budget summary, and asked for more detail about how merit reviews will determine actual distributions.

The council approved the $155,000 pool by roll call. The record shows four recorded yes votes; no ayes, no nays, and no abstentions were recorded in the roll call provided.