Page 17 - CityofLakeWorthFY26AdoptedBudget

COMPENSATION AND BENEFITS

The City of Lake Worth recognizes that its employees are the foundation of high-quality

service delivery and day-to-day operational success. From public safety and infrastructure
to customer service and community programming, our dedicated staff ensures that

residents and businesses receive the dependable, responsive municipal services that

define our community. As such, maintaining a competitive and sustainable compensation
and benefits package remains a top priority. The City is committed to attracting,

retaining, and rewarding talented professionals while also adhering to responsible fiscal
management and the City Council’s adopted compensation philosophy.

The FY 2026 Proposed Budget includes the following key highlights related to employee
compensation and benefits:

City-Wide Compensation Adjustment Pool
Funding is included for a 3% merit-based compensation pool across all

departments, in alignment with the City's compensation strategy and market
conditions.

In addition, employees participating in the structured Step Pay Plan will be

eligible for a 4% step increase, consistent with the plan’s progression guidelines.

Health Insurance Premium Adjustments

The City is anticipating a 30% increase in group medical insurance premiums over
the prior year’s actual expenditures, reflecting broader market trends and rising

healthcare costs across the industry.

While this increase presents a budgetary challenge, it is important to note that,
thanks to careful planning and ongoing collaboration with our benefits

consultant, the City has continued to shield employees from additional premium
contributions, preserving full coverage without requiring employee-funded

increases. This stands in contrast to many peer organizations that have shifted

rising costs to their employees.