MONROE — City of Monroe officials are expecting the 2024-2025 general fund budget to be just over $13.2 million, up almost 6% from 2024’s projected spending, largely attributable to increased labor costs, debt service, and some capital projects.
Overall expenditures are projected to jump about 1.61%, apart from any increases from debt service.
“The expenditure increase is highly attributable to the COLA increase for employees’ wages, as well as health insurance premiums,” said City Administrator Brittney Rindy on Monday, Nov. 18, prior to a budget being on the Common Council’s regular agenda.
In the new budget year, city workers will see a raise that includes 2.5% increase for “step movement” upon the anniversary date of their hire. Moreover, annual cost of living (COLA) starts at a 3% increase to wages, although the average COLA over five years is 4%.
Rindy also pointed to other changes in the budget.
“Debt Service is the other larger factor contributing to the (overall budget) increase, supporting capital projects,” she said.
The tax levy is expected to increase to $396,324. All told, debt service is up $490,500, including a $436,500 increase in 2023A bonds, which is attributable to using up premium that paid for interest in 2024 — a $312,000 change from 2024 to 2025. And revenues in the proposed spending plan — including revenue from property tax — jumped 5.35%.
Health insurance for employees — another area of expense growth for the city — are projected to jump 8.9%. City officials have said such benefits need to be competitive for Monroe to attain and hire workers who can afford relatively high housing costs here.
The impact on the mill rate is 0.00718715 — equaling $7.19/$1,000 value — is an increase of $0.20/$1,000 value, or 2.86%. In the 2023 budget cycle, it was $6.99/$1,000.
Under those budget and levy projections, city officials say the average home of $175,000 would see an increase of $35 in the amount of tax money paid to the City of Monroe. The School District budget is typically the other major impact on the total tax burden for homeowners.
Other highlights Rindy emphasized in a memo on the budget to the council:
● Building Inspection revenue and expenditures — balance at 80% earnings
● Fire Inspector wages — heavily offset by evaluating wages to budget for paid on call firefighters based on actual expenditures over the last five years
● Sanitation Fund (includes bulk waste pick up) — central location
● General Transportation Revenue — decreased by $40,000 (based on average of last five years expenditures)
● Labor Attorney Fees — decreased, original proposed budget was high based on actuals — forgot to factor in higher expenditures in 2024 related to PD negotiations
● Zoning Fees — decreased, stabilized expenditures in last quarter and more realistic to historical expenditures — Lease payment of $160,052 added to the debt service transfer when tied out
The annual budget process started last July, culminating in Monday’s public hearing and expected final review by the full Common Council.