Page 26 - CityofLakeWorthFY26AdoptedBudget

Workforce Investment and Budgetary Balance – FY 2026

The FY 2025–2026 budget reflects the City of Lake Worth’s continued commitment to

responsible financial planning while making meaningful investments in its most
valuable asset—its employees. Maintaining a motivated, high-performing workforce is

essential to delivering the exceptional municipal services our residents and businesses

expect.

To support employee retention, recognize performance, and maintain competitiveness
within the regional labor market, the proposed budget includes the following

compensation provisions:

3% Merit-Based Increase Pool
Funding has been allocated for a 3% merit increase pool, which allows

department heads to reward employee performance based on annual
evaluations. This approach helps incentivize excellence and reinforces a

culture of accountability and service.

4% Step Pay Plan Increases
For eligible employees enrolled in the City’s structured Step Pay Plan, the

budget includes a 4% step increase, consistent with established progression

schedules. This ensures internal equity and supports professional growth
within the organization.

Health Insurance Cost Projections

While prioritizing competitive compensation, the City also remains mindful of the

rising cost of employee benefits. The FY 2026 budget assumes a 30% increase in the
City's group medical insurance premiums, reflecting broader trends in the healthcare

industry. Despite this projected increase, the City continues to explore cost

containment strategies and plan design options to mitigate long-term impacts while
preserving quality coverage for employees and their families.