Jennifer, a city finance staff member, presented the proposed 2026 payroll packet and said, "what's included in the packet is, actually our entire '26 payroll budget that includes current employees raises 20 seventh pay, the increased health insurance cost, and then the proposed, 13 new or vacant positions." The packet shows 152 full-time-equivalent employees and includes a fund-by-fund breakdown of wage and benefit costs.

Staff told the committee the reconciliation of wages and benefits totals roughly $64,000,000 and emphasized variability by retirement system, bargaining unit, overtime and workers' compensation. Jennifer said the packet breaks the changes down by fund and shows how the proposed hires and benefit increases would affect the general fund, fire, sewer and water funds.

The packet lists 13 proposed positions with a combined budgeted vacancy cost of about $2,100,000. Jennifer noted one sewer position is being held to evaluate spring workload and that several planned water-operator positions had been filled by transfers, creating temporary openings in sewer. Committee members discussed the difference between newly proposed positions and positions that had been vacant for an extended period; staff pointed to the vacancy page of the packet for that breakdown.

On health insurance, staff presented a renewal summary for the HSA-only plan, described fixed costs (stop-loss, prescription, vision, dental) and noted estimated claims are the primary variable. Jennifer explained the city is self-insured up to $125,000 per claim and said three individuals exceeded that stop-loss limit this year, which contributed to premium increases. She summarized enrollment (about 41 single participants and more than 200 family participants) and said the 2026 HSA contributions were left unchanged for budgeting purposes.

Staff reported results of an OpenGov survey of employees on premiums and HSA contributions; about 52% of participants on the plan responded and, according to Jennifer, "the number 1 choice was to keep keep it the same. Keep the premiums as calculated and keep the HSA as calculated." She stressed that the survey results do not obligate council action.

Committee members discussed the calendar-driven "27th pay" in 2026 — an extra pay period that occurs periodically because of how paydays fall on the calendar. Staff said the cost is a budgetary impact and that most contract and union provisions leave little flexibility; the primary discretion lies with salaried management and director-level ordinances. Staff estimated the exposure for that management group in prior discussions at roughly $130,000–$150,000 and said the committee should plan for the cost in next year's budget.

Committee direction: members did not take a formal vote. They signaled support for including the revised payroll and benefit estimates in the 2026 budget process and, consistent with the employee survey, instructed staff to budget with HSA contributions and stipends left unchanged pending further analysis. Staff was asked to return with any follow-up data requested by the committee.

For the record: figures and timeline items referenced above come from the finance packet and staff presentation; several numbers were given as estimates and described by staff as not reconciled to the penny.