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City Council <br />Meeting Minutes <br />June 7, 2016 <br />Page 3 of 11 <br />City Manager Fleming stated the reductions in the building revenues is a significant <br />impact on the general fund. Based on all of the assumptions, for current years we are <br />living within our means, but in the out years projections show we would not be able to <br />sustain current spending levels. <br />For the expenditure target City Manager Fleming stated there is more ability to control <br />the numbers based on how we budget each year. He noted there is an assumption of a <br />4% increase for salaries and it includes increased costs for insurance. This assumption <br />is based on historical averages. This assumption also includes no new positions. <br />Mayor Pro Tem Lipton noted expenditures are greater than revenue growth in the long <br />run. Director Watson noted this is very much a guess and we can't guarantee the <br />numbers, but we can budget accordingly in those years. <br />Mayor Muckle asked if there are raises for the lowest paid employees would that be in <br />the temporary salaries category. Human Resources Director Hix said yes, but it would <br />impact equity across the organization and would require a larger policy conversation <br />Councilmember Leh asked how the new changes from the Department of Labor <br />regarding overtime pay will affect the City. Director Hix stated it will affect 5-10 <br />employees. <br />Councilmember Leh asked if assuming no new positions is realistic with service needs. <br />City Manager Fleming stated it is probably not, but those are the financial constraints <br />that will affect how we plan for future projects and service levels. <br />Councilmember Keany asked for an explanation at a later date of how many full time <br />employees (FTE) have been added since 2010, it seems very high. We can't keep <br />adding employees if there is no additional revenue. <br />Mayor Muckle noted the Council needs a full discussion of a "living wage" and what it <br />would cost the City to increase wages of the lowest paid employees. He would like more <br />information on that before the discussion of operational budget Councilmember Loo <br />stated she didn't think that would be possible for the 2017-18 budget. City Manager <br />Fleming agreed that such a large change in compensation policy couldn't be evaluated, <br />discussed, agreed upon and implemented prior to the end of this budget cycle. <br />City Manager Fleming noted workload in 2016 is much higher than previous years and <br />staff is highly stressed with construction, the IAN project, filling positions, budget <br />changes, and much more. Staff is stretched very thin and that affects everything else. <br />Councilmember Keany stated he doesn't want the discussion of raises to lower paid <br />employees to be put off until the 2019-2020 budget, he would like to see it for the 2017- <br />2018 budget. Councilmember Loo noted there is not enough time to do that for the next <br />9 <br />