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Assembly-approved AMEA contract raises labor costs; nonrep adjustments to follow

Budget and Finance Committee of the Whole · December 19, 2025

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Summary

OMB told the committee the assembly approved a roughly 5% annual cost for the AMEA contract, with wage adjustments of 2.5% phased over four years plus step increases and additional expense largely attributable to a health-care transition; nonrepresented and executive adjustments will be considered in Q1 budget revisions.

OMB Director Ona Brause briefed the committee that the assembly approved the AMEA (municipal employees association) contract on Tuesday. Brause said the contract is expected to cost about a 5% increase on an annual basis, with wage adjustments characterized as "2 and a half, over 4 years plus step increases for longevity purposes."

A committee member asked whether a previously discussed $26.6 million figure included those step increases; Brause confirmed the steps are included and said the bulk of the total increase is largely attributed to a health-care transition that changed plan costs and municipal exposures.

Why it matters: the AMEA bargaining-unit agreement affects FY26 personnel costs and will drive follow-up adjustments for nonrepresented and executive pay to maintain appropriate compensation separations; the committee expects to see related adjustments and comparative numbers in January or the first-quarter revision process.

Details

Brause said nonrep and executive adjustments will be brought forward either in January or as part of first-quarter budget revisions so supervisory pay remains appropriately separated from represented wages. She described the AMEA outcome as positive for municipal labor relations but noted it adds cost that the budget office will accommodate through planned revisions and by examining vacancy and rollover balances.

Next steps

Staff will present comparative numbers and proposed adjustments for nonrepresented and executive pay in the early part of 2026 as part of the budget-review process.