Meeting electronically Tuesday afternoon (4.14.20), the BOC (Board of Commissioners) reviewed a draft of the Fiscal Year (FY) 2020-21 budget along with Lakeland City department heads. All commissioners were in attendance for the workshop with Mayor Mike Cunningham and Commissioner Richard Gonzales, Jr. at City Hall with Shane Horn, city manager. The other attendees participated electronically.
The Mayor asked that rules be relaxed for the session, allowing speakers to feel free to speak openly. He cautioned there are delays because of the electronic format. “Be patient. We’ll all get a chance to speak,” he said. There were no objections from other commissioners to the relaxed format.
Link to audio: https://www.facebook.com/LakelandTN/videos/2845161325560288/
Link to the agenda: https://www.lakelandtn.gov/ArchiveCenter/ViewFile/Item/924
Link to FY 2021 budget draft: https://www.lakelandtn.gov/DocumentCenter/View/8992
Mr. Horn gave an overview of the budget, noting that Michael Walker, finance and human services director, wanted to ratchet up the budget process and submit the document for consideration to GFOA (Government Finance Officers Association).
Revenue projections are somewhat difficult to corral, said Mr. Horn, because of COVID-19 being front and center. His point was to note that after the budget is approved July 1st, there may be a need for budget amendments. “We are trying to use the best-case scenario from a revenue standpoint,” he said.
Included in the budget is a 2% cost-of-living increase for all employees as well as a 1% of total salary discretionary merit increase.to department level employees and the city manager. Placed in the budget is a competitive salary for GIS (Geographic Information System) and IT directors as well as the Parks and Recreation Department director.
Mr. Horn said the budget includes a starting hourly rate minimum for employees of $14 an hour. There are still three or four employees whose rate is $13.30 per hour, he said. “I think $14 is low, but it’s going to take steps to get us where we need to be.” Mr. Horn said he wants Lakeland to be competitive with surrounding jurisdictions. “Salary and benefits are a part of that, but we also have to address their needs,” he said of employees. He said Lakeland should have a reputation as a great place to work where employees are valued and their input is valued.
Also in the budget is the City transitioning to an 80/20 plan for insurance premiums for employees. The health care provider said there will be a 6% increase for health care renewal.
Mr. Horn said over the years, the raise in insurance premiums has been passed to employees. Right now, an employee+1 pays about 25% with a family paying 32% of the premium. He said this will reduce insurance premiums for employees. Mr. Horn said Bartlett is 80/20 and Collierville is 85/15. “This gets us a little more competitive.”
The budget represents one employee change, adding a construction inspector. “We are extremely busy in that department,” said the City Manager. He expects the cost to be covered by the amount of development in the City.
The budget is based on continuing the property tax rate of $1.24.
The workshop was then turned over to Mr. Walker to review the budget line by line.
Commissioner Wesley Wright asked about a timeframe on adoption of the budget. Mr. Walker said the first reading of the budget document is in May with the second reading and adoption hopefully in June. “We have until June 30th to get the budget approved and to the state to sign off on,” he said.
