Page 128 - CityofWataugaAdoptedBudgetFY25

BUDGET SUMMARY

In the FY2024-2025 budget, funding was concentrated on retention and recruitment of
employees. In this budget, the following is included:

o Implementation of Compensation Study recommendations to include 3% market
adjustment for Civil Service, and a market adjustment for general government
employees to minimum ranges. The impact of the compensation study on the
annual budget is estimated to be $380,000 across all funds, including benefits.
o Increase of certification pay for civil service employees.
o Continued funding for civil service step increases.
o 1-3% merit increase for general government employees based on annual
evaluations.
o 4% cost of living increase for all employees.

Personnel additions (not including reclassifications) are listed below. These positions
have been funded for a partial year to reduce the budgetary impact but still provide for
the departmental needs.

➢ Parks and Recreation Department –
o 2 Recreation Attendants Part-time (.50 FTE)
➢ City Secretary’s Office –
o 1 Administration Assistant Part-time (.25 FTE)
➢ Police Department –
o 1 Code Enforcement Officer (1.0 FTE)

Additional changes include reclassing the four part-time Summer Maintenance Worker I
positions funding to a full-time Maintenance Worker I position due to the discontinuation
of the seasonal positions.

Other reclassifications are included in this year’s proposed budget as submitted within
the Personnel Enhancement Plan (PEP) with a nominal impact on the budget.

➢ The City’s Employee Retirement (TMRS) rate is forecast to be 17.73%, up 0.89%
from last year’s rate of 16.84%.

➢ Health insurance cost increases over the last few fiscal years have been a major
concern in the City. This fiscal year, health insurance was originally forecast to come
in at a 17% increase in the budget. However, the City received multiple bids this year
and will realize significant savings of approximately 30% in medical insurance costs
with a shift in vendors and changes in the plans. The City contributes some funding
to dependent insurance costs and matching contributions for employees’ health
savings accounts. The City contributions for health savings accounts are under
market and are proposed to increase in the upcoming budget year. In FY2023, the
City rolled out a tiered cost sharing model for insurance premiums to aid in the funding
of medical costs which will continue in the FY2025 budget.

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