During the crafting of the 2021 Budget, the City was in the midst of the Coronavirus epidemic with no clear view of the impact on the city finances. I had great concerns regarding the ability of the city to fund a cost of living increase (COLA) due to the uncertainty of the epidemic and the strength of the U.S. economy. Budgeting conservatively and with caution, a COLA was not included in any budget for 2021. In addition, we negotiated to not have a COLA in any of our union contracts. We were one of the few of our peer cities to be so conservative. 

During the course of the pandemic, city staff at all levels have performed exceptionally well under circumstances that could not have been foreseen. We all owe them a debt of gratitude for their efforts and willingness to do whatever needed to be done to ensure that the City of Shakopee did not stop functioning. They are an exceptional group. It has been an honor to work beside them during this time. 

Although the pandemic has not run its course, I do believe that based upon our financial strength and various funds that have been provided by the Federal Government, the City of Shakopee should move forward and provide a 2% COLA for our employees for 2021. It is the fair and just thing to do. 

This approval would authorize city staff to provide back pay at 2% of the approve 2021 wages for the period of 4 January to 8 August 2021, and add 2% to all employee base salaries from 9 August to the last pay period in December. Union contract amendments would be executed to reflect those changes as well.