Budget committee endorses 5% pay bump and $300-per-person health benefit for city staff

The Dunes City Budget Committee voted to forward its proposed fiscal budget to the City Council with a series of recommendations that include a 5% salary increase for employees and a $300-per-person monthly health-benefit stipend.

“It's a recommendation that we provide a 5% salary increase and a $300 per person health benefit,” said Committee member (S3) when moving the recommendation; a second was recorded and members passed the motion by voice vote. Committee members discussed whether the stipend should be treated as a pre-tax benefit or structured as a health-savings contribution.

Staff warned the committee that adding employer-paid health benefits would raise ongoing operating costs. A staff member noted they had estimated roughly $33,000–$36,000 annually to provide insurance for four part‑time positions and outlined options including CIS coverage, an employer subsidy or a health‑savings account to achieve tax efficiency.

Committee members asked for a funding plan that spreads costs across appropriate funds (general fund, water enterprise, short‑term rental fund) and recommended city staff obtain binding insurance quotes before the Council takes final action. The committee’s motion included five recommended line-item adjustments (salary increase, $300 stipend, driver-license fee changes, roof maintenance, and newsletter budget changes) and will be transmitted to the full City Council for final approval.