Sarah Barrows, Linn County Budget Director, opened the FY2027 budget discussion and proposed using a 3.5% placeholder wage increase for non‑bargaining employees, with contractual increases for bargaining units to be added when negotiations conclude.

Lisa Powell, who compiled compensation comparisons, said regional data and a WorldatWork public‑sector survey supported 3.5% as a conservative midpoint; she noted deputies are settled at 4% effective July 1. Sarah estimated a 3.5% increase for management/non‑bargaining groups would amount to about $700,000, while 4% would be roughly $800,000 for that group. Another speaker estimated approximately $4 million would be needed countywide to fund broader raises across all employee groups.

Supervisors pressed trade‑offs: one said 4% could better retain managers competing with nearby employers such as the City of Cedar Rapids and local school districts, while the chairperson said she would prefer the more conservative 3.5% placeholder to avoid front‑loading raises before the county has January valuation and bargaining unit results.

Sarah said the board should identify a placeholder by the coming Wednesday so it can be included in department budgets; valuations and finalized bargaining outcomes in January would allow staff to update the budget system and change the placeholder if necessary. The finance director noted valuation rollbacks effective Nov. 1 and recent state legislative changes that reduce revenue flexibility, saying cuts are likely and an "offer pot" for raises may be unlikely without legislative change.

Board members agreed to continue discussion; no final budget decisions were made at the meeting. Staff will provide scenario estimates and supporting data ahead of the Wednesday meeting and again after valuations and bargaining results are available.