City staff proposes 5% or $1.50 raise to improve retention in budget pitch

City staff presented a proposed budget at the July 27 workshop that centers on employee retention and maintaining infrastructure, proposing a cost-of-living increase of 5% or $1.50 per hour — whichever yields a higher raise for an employee.

"Our main goal this year was employee retention and recruitment," Staff member (S5) said during the presentation, noting that the city gave no raises last year and that the proposed increase is intended in part to make up for that gap. Staff also said the overall effect across funds would increase personnel costs and associated items such as insurance and workers' compensation.

Staff told council they are not requesting net new positions; two role changes were described: a utilities position being reclassified to a supervisor role and a police records‑clerk position reclassified to a telecommunications/dispatcher role to add capacity to dispatch operations. Council members pressed staff on how the proposal compares with neighboring municipalities, and staff said departments evaluated a 5% increase as a competitive spot after an unsuccessful attempt to secure 6% ($2/hour).

Staff estimated that, looking at compensation trends and the proposed raise, the city would see roughly a 2.5% overall annual pay increase on average across positions but warned that final impacts depend on the tax rate and final revenue figures when the county releases them. Staff agreed to include comparisons and additional detail in forthcoming budget materials and the executive summary.

The council did not take formal action at the workshop; staff said they will circulate a projected budget timeline and an updated packet with any requested clarifications.