Minutes of the Centerville City Council budget work session held Tuesday, June 7, 2005 at 6:00 p.m. in the Centerville City Council Chambers, 250 North Main, Centerville Utah.

MEMBERS PRESENT:

Mayor: Michael L. Deamer

Council Members: Paul Cutler

Jack Dellastatious

David R. Gutke

R. Dean Layton

Debbie L. Randall

STAFF PRESENT: Steve Thacker, City Manager

Blaine Lutz, Finance Director/Assistant City Manager

Mike Bennett, Intern

Karrie Carlson, Recording Secretary

COMPENSATION AND BENEFITS

Steve Thacker, City Manager, reviewed a proposed ordinance for pay raises for FY 2005-06. He reviewed three exhibits of the ordinance that constitute the City’s Compensation Plan: 1) Salary Administration Guidelines; 2) Position Pay Grade Schedule; and 3) Salary Schedule. He explained each of these exhibits and responded to questions from the Council. This proposed ordinance is similar to the one adopted for the FY 2004-05 Budget. Mr. Thacker also explained that the Justice Court Judge is not on the Position Pay Grade Schedule and any adjustment to his salary would need to be approved by the Council through an ordinance or resolution. Mr. Thacker is recommending a 3% increase for the Justice Court Judge.

Mr. Thacker also explained that the City is facing a 20 percent increase in health insurance premium effective July 1, 2005. The City Manager’s proposed budget is based on the assumption the City will cover approximately half of the increase (approximately 10%) and the employees would cover the other 10%. This means a several fold increase in what the employee is paying out-of-pocket. Blaine Lutz noted that the proposal presented to the employees would actually result in the employees paying more that half of the cost increase. The dental benefit premiums have not increased significantly in a number of years and are not expected to increase like the health insurance premiums have. Mr. Thacker responded to questions from the Council regarding the budget impacts of the increases from the health insurance as well as the proposed pay increases in the Compensation Plan. The Council will continue this discussion in the City Council meeting.

At 6:55 p.m. the meeting was adjourned.

Marilyn Holje, City Recorder Date Approved

Karrie Carlson, Recording Secretary