Moberly Council weighs 2021 budget, shifts to high-deductible health plan and a one-time pay adjustment

Moberly — Finance and human-resources staff asked the city council on Monday to weigh options for employee compensation and a redesigned health plan for 2021 as part of a broader budget update.

The city’s finance director told the council the general fund is roughly $181,151 ahead of where staff expected to be at this point in the fiscal year after adjusting for seasonal revenue timing. The director said that, across funds, a 1 percent salary increase in the general fund would cost about $40,000 and that a 2 percent across‑the‑board raise would cost roughly $78,000.

“Right now we’re actually $181,000 above what we expected to be at this point in the year,” the finance director said. “That’s the net amount, taking revenues minus expenditures.”

Council members pressed staff for options that would recognize employees without committing the city to ongoing salary costs if revenues fall later. One council member proposed a one‑time $1,000 prospective salary adjustment (an up‑front, non‑recurring adjustment intended to be applied prospectively), noting it would avoid adding permanent base pay that increases pension liabilities. Another suggested a 2 percent raise instead, and several members said they preferred a solution that preserves flexibility through the uncertain pandemic recovery.

“Let’s give a one‑time $1,000 adjustment and reevaluate in June,” a council member said, arguing the approach would deliver immediate relief without locking in long‑term wage growth if sales tax receipts decline.

City staff cautioned the council on legal form. The city attorney told members that state guidance generally prohibits paying retroactive bonuses for past work by local government employees, so any extra compensation will need to be drafted and described as prospective or as a lawful adjustment rather than a retroactive “bonus.”

On employee benefits, staff reviewed a proposal to add a high‑deductible health plan (HDHP) effective Jan. 1 with city contributions to Health Savings Accounts (HSAs). Under the plan documents provided, the HDHP would have individual deductibles around $2,800 and family deductibles around $5,600, with the city contributing a monthly amount that would include an HSA deposit for participating employees. Staff estimated the health‑plan changes and the city’s HSA contributions would increase overall benefits costs by about $49,000 in the scenarios presented.

Council members discussed participation uncertainty — how many employees would choose the HDHP versus the buy‑up option — and asked that staff provide final figures and clear communications (including a virtual presentation and on‑demand materials) before implementation. The council agreed to move forward with drafting the prospective adjustment mechanism and to revisit final compensation decisions later in the budget process.

The work session concluded with council direction to have staff craft precise, legally compliant language for the proposed one‑time prospective adjustment and to return the item for formal action at a future meeting.