Notes from the latest (8/8/22) City council meeting regarding the budget:
“Salaries will see a 7.4% increase over current budget“– according to City manager Finley deGraffenreid [56 minute mark].
In 2013, total City salaries were approximately $3.9 million [see packet] . In the current budget being discussed, salaries are approximately $7.3 million. This implies a compound annual growth rate of 7.2% per year.
Inflation during that period averaged 2.7%. Therefore, salaries have risen 166% faster than inflation (i.e. 2.6 times faster). There IS and WAS no need for a COLA last month. Employees are ALREADY being compensated far faster than inflation. This is indisputable math. Population growth in Lampasas was negligible at less than 1% per annum.
The retirement plan for the City employees is with the Texas Municipal Retirement System “TMRS”. The employees contribute seven percent (7%) and the City matches at roughly a TWO TO ONE ratio. So the City contributes roughly $14,000 for every $7,000 put in by an employee.
That is REAL money – paid for by YOU.
In 2013, the City contribution rate was 15.21% and carried an annual cost of $661,884. The CURRENT City contribution rate is 16% and carries an annual cost of over $930,000. The City is now close to paying out one million dollars per year just in matching retirement contributions at 2-1.
In 2016, City salaries and benefits made up 28% of the City budget (20% salaries and 8% benefits).
In current budget, salaries and benefits eat up 30% of budget.