Dell Rapids council approves 5% raise for finance officer; staff reports revenue gains and budget risk

The Dell Rapids City Council unanimously approved a 5% pay increase for finance officer Claire, raising her hourly rate from $42.73 to $44.87. Council member Steve presented Claire’s performance evaluation and told the council he was authorized to grant up to a 3% merit raise but recommended an additional 2% based on duties performed while the city lacked a full administrator. "I am authorized to give up to a 3% merit raise... I believe that she has accumulated additional knowledge... that justifies giving her a 5% raise," Steve said. Barry moved to approve the pay increase; Wendy seconded and the motion carried on an oral "aye" vote.

Claire thanked the council for the raise. In her finance report, Claire said the city has brought in roughly $1,400,000 year-to-date, which staff presented as about 0.46% above the comparable period last year. She described the city’s revenue mix, saying roughly 33% of revenue (sales tax and property tax) and about 40% from charges for services (water and sewer) on an organization-wide basis; the general fund portion funded largely by sales and property taxes was described as closer to 60%.

Council members asked about the budget implications if the pending measure referred to in the meeting as "I am 28" advances. Staff said they do not yet know the precise impact but estimated exposure could be as much as $350,000, which could require delaying nonessential capital projects or other extras in future years.

What happens next: The council approved the raise and will continue monitoring fiscal trends and the potential impact of the pending measure on near-term capital and operating plans.