“Across the board” 4% raises are planned for all Valparaiso municipal employees, as included in the 2022 proposed city budget of more than $39 million.
Valparaiso Clerk-Treasurer Holly Taylor and City Administrator Mike Jessen reviewed the city department expenses and administrative costs, as well as anticipated revenue, to Mayor Matt Murphy and council members presented as Ordinance No. 25, which passed the first reading vote unanimously at the Sept. 13 meeting.
“I’ve worked with the clerk-treasurer and the department heads on this budget for a couple months to see what they needed for finances to continue to run our city as successfully as they have,” Jessen said.
“If you remember back to our 2021 budget, we were in an extremely cautious time and we were not sure what the effect would be of COVID, and what our situation might be. We feel more comfortable now, but were are not out of the woods yet. We made sure department heads were careful and conservative with expenditures.”
Jessen said department heads have a long history of underspending on their budgets by at least 10%, proving “they spend taxpayers’ money wisely.”
Taylor explained the 4% raises included “across the board” for city employees comes after last year’s budget did not include any wage increases, a result of added precautions because of the pandemic.
The total increase for the city budget expenditures is slightly more than $2 million, or a 1.54% increase, compared to the 2021 budget. The estimated miscellaneous revenue from city funds, such as parking meters, park and recreation fees, and other resources, amount to $10,897,950, added to city anticipated tax money of just more than $29 million.
“On the revenue side, you can see from the comparisons from June 2021, we are up in most cases,” Taylor said.
The calculated tax rate for 2022 is 1.5954% per $100 of taxable property, a lower figure, compared to the 2021 tax rate of 1.6771%.
“I appreciate all of the department heads who held the line for budgets in the past year, and now, with us being able to add to our city employee head count by four people,” said Council President George Douglas.
“I look at the services were are providing in this community and the level of services and it’s not matched anywhere else, which is amazing for the dollars we have. And we are maintaining our bond rating. If you look at our tax rate going down, you hit the nail on the head, as the name of the game is growing our assessed valuation. Because if we don’t, then that tax rate goes the other way. The lower the tax rate gets, we become a more attractive place for people to live and have their businesses here.”
The existing salary in 2021 for the mayor is currently $91,962.96, and $11,244 for city council members.
Councilman Evan Costas, R-At large, asked how city department heads disperse raise allowances.
“Is the 4% standard for all city employees, or do we budget for 4% and we leave it up to department heads and it’s based on performance?” Costas asked.
Taylor said there can be circumstances on a “case-by-case basis” when a department head might choose to adjust a raise amount higher or lower.
“We took the right stance to not offer raises last year and there are not many communities who did that and our employees were gracious and patient with us,” Jessen said.
“4% is a significant raise, and we feel the employees deserve it.”
Murphy said he will continue to encourage and applaud department heads to underspend annual budgets by 10%.
“We can’t always do underspending, but that remains our goal,” Murphy said.
During the public hearing portion of the budget ordinance, no one from the public spoke or asked questions. A second council vote to pass the budget will be at the Sept. 27 council meeting.
Philip Potempa is a freelance reporter for the Post-Tribune.
