HomeMy WebLinkAbout05(F) - Resolution Approving 2025 Budget Amendment ReportCITY COUNCIL AGENDA REPORT
MEETING DATE:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
June 10, 2025
Nicole Klekner, Interim Finance Director
Nicole Klekner
Resolution Approving 2025 Budget Amendment
ITEM: SF
RECOMMENDED ACTION:
The purpose of this agenda item is to consider a budget amendment for the General Fund. The
primary purpose is to accurately reflect the Police Department payroll based on the completion
of a compensation market analysis. Staff recommends funding in the amount of $229,800 for
2025 for wage adjustments for Prior Lake police officers and sergeants.
BACKGROUND:
The City and the two labor unions representing Prior Lake police officers and sergeant s entered
into new collective bargaining agreements (CBA) on January 1, 2025 through December 31,
2025. The terms negotiated and agreed upon as part of the CBA included a compensation market
analysis to confirm that Prior Lake police wages are competitive with the market and that any
wage adjustments would be retroactive to January 1, 2025.
Because the 2025 budget was adopted (December 10, 2024) before the conclusion of the
compensation market analysis, staff provided an estimate for the wage increase for budgeting
purposes. This estimate was less than the findings of the market study. As such, a budget
amendment is required to meet the obligation for wage adjustments per the CBA. This
amendment does not increase or decrease the tax levy for 2025. Rather, the funding source for
this budget amendment is Fund Reserves of the General Fund.
FINANCIAL IMPACT:
To accurately reflect the Police Department payroll expenditure increase for 2025 based on the
compensation market analysis, the 2025 expenditure budget should be amended as follows:
Fund 2025 Budget
Expenditures Increase Amendment
General Fund $229,800
ALTERNATIVES:
1.Approve a resolution approving an amendment to the 2025 budget.
2.Remove this item from the consent agenda for additional discussion.
ATTACHMENTS:
1.Resolution -Resolution Approving 2025 Budget Amendment
City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
4646 Dakota Street SE
Prior Lake. MN 55372
RESOLUTION 25 -
Approval of 2025 Budget Amendment
Motion By: Second By: ---------
the City and the two labor unions representing Prior Lake police officers and
sergeants entered into collective bargaining agreements (CBA) on January 1,
2025 through December 31, 2025; and
terms negotiated and agreed upon as part of the CBA included a compensation
market analysis and wage adjustments retroactive to January 1, 2025; and
the 2025 budget was adopted on December 10, 2024 prior to the completion
of the market analysis so an estimate for Police payroll was used for budgeting
purposes; and
the 2025 General Fund budget does not reflect additional estimated
expenditures of $229,800 for Police Department payroll determined due to the
analysis.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1.The recitals set forth above are incorporated herein.
2.The 2025 Budget is amended to reflect the expenditures as noted above (Fund 101-42100.00-
applicable payroll accounts).
3.Funding will be provided by the General Fund reserves.
Fund-Net of 2025 Budget
Expenditu res/(Reven ues) Amendment
General Fund $229,800
Totals $229,800
Passed and adopted by the Prior Lake City Council this 10th day of June 2025.
VOTE Briggs Braid Churchill Hellier Lake
Aye □ □ □ □ □
Nay □ □ □ □ □
Abstain □□ □ □ □
Absent □ □ □ □ □
Jason Wedel, City Manager
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