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City adopts tentative budget; manager says payroll and insurance changes will raise net employee pay
Summary
The council adopted the tentative budget and set a public hearing for the June meeting. City staff said they will implement a 4% wage increase and the city will pay employees' portion of insurance premiums, producing an estimated 10–14% net increase for employees, per the manager's explanation.
The Farrant City Council adopted its tentative budget and set a public hearing during the June meeting after staff answered questions about temporary help, equipment and utility-fund balances.
City management explained that rather than grant a larger across-the-board raise that insurance premium increases would largely offset, the city will apply a 4% wage increase and pay the employee portion of insurance premiums so that employees realize a net pay increase. "We will pay your guys' portion of what you're paying into insurance," the manager said, adding that employees who elect higher-than-base coverages would still pay those additional amounts. The manager said the combined effect will result in roughly a 10–14% increase in pay for staff (city explained this as a function of absorbing the insurance premium increase).
Councilors raised follow-up items including the potential use of a $10,000 road maintenance line to pay temporary workers for weed control, the need to monitor the combined utility funds (one line in the tentative budget showing limited margin), and requests to make the tentative budget available online. Council approved the budget by motion and roll call and scheduled the public hearing for the June meeting.
The tentative budget was placed on public availability and staff invited the public to review it and submit comments ahead of the public hearing.
