7/19/1994 - Laserfiche WebLink

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RECONS FOR FUNDING COST OF LIVING ADTUSTIVIENT FOR ALL COUNTY EMPLOYEES County Administrator Jim Chandler recounted that at the budget workshop the Board directed staff to make recommendations on providing a Cost of Living Adjustment (COLA) for County employees and methods of funding a COLA, and staff has two alternatives, depending on the Sheriff's planned step raise for his employees. Administrator Chandler listed three changes in the budget: (1) last week's presentation on the health insurance resulted in savings; (2) cash balances in MSTU and Transportation budgets, and (3 ) the State modif ied their f igures for the one-half cent sales tax revenue and their estimate now is $57,000 better than originally set out, although it is $57,000 less than the current year. Funds from these three sources cannot provide a 2 percent across the board COLA increase to begin on October 1, 1994, but we may be able to provide a 2.2 percent increase if we were to begin the adjustment on January 1, 1995. The limitation involves the Sheriff's budget. The Sheriff's budget includes $190,000 for a step program increase, and we have recommended that his budget be reduced to the current year's level. If he cannot reduce his budget, we have Alternate B, which could provide a COLA increase of 1 percent on October 1, 1994, or 1.2 percent increase on January 1, 1995. Staff reviewed and stretched all sources to arrive at these recommendations. Commissioner Bird asked for clarification of the sources of funds for the 2.2 percent increase in Alternate A. Administrator Chandler explained that the insurance consultant transmitted rates which resulted in a savings of $184,000, which was unexpected prior to last Thursday. The balance of the funds for the 2.2 percent increase would come from the cash balances in MSTU and Transportation budgets, and the $57,000 increase in the State's estimate of our one-half cent sales tax revenue. Staff predicated all these figures on the goal of no tax increase. OMB Director Joe Baird emphasized that he could not guarantee the funding for a COLA increase because of a contingency in the Emergency Management Services budget. The funding is an estimate at this time. He stressed that the millage rate must be set so that the TRIM notices can be mailed out. The Sheriff's budget will make a difference because 60 percent of law enforcement budget comes from MSTU revenue while court services come from the General Fund. 113 Box . �V,4 00( July 19, 1994