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Myth: PERA is broke. Fact: PERA has $20 billion in assets. Myth: Retire benefits leave Minnesota because retirees leave the state. Fact: 91% of retirees stay in Minnesota after retirement and spend $1.3 billion in the State of Minnesota. Please read the entire attached document. It helps understand the facts about PERA. Fees and Service Charges Raising fees and service charges was briefly mentioned at the meeting. It is important to remember that each department has different cost drivers behind their fees. There are several issues with raising fees that makes it complex. For example, the fee for the Eagle's Nest is $5.50 per kid. Raising it to $6 may seem like not much of a raise, but when you consider, of the five indoor playgrounds in the area, that New Brighton currently charges the most already, it would not be a good idea to raise that fee. Land Use fees could be raised, but if we have fewer applications this fee may not generate much of an increase. Additionally, some fees such as land use fees need to have a nexus between the fee charged and the service provided. At this time it would be my recommendation that Council shouldn't raise fees without staff input at the least and possibly the assistance of a third party to do an independent analysis. Compensation (This portion reprinted from August 22 memo.) The proposed 2013 budget includes a 2% COLA and step increases for non-union and union personnel. The City of New Brighton currently has collective bargaining agreements in place with our three union groups (sergeants, police, and maintenance workers) for 2% COLA and step increases in 2013. The total proposed personnel budget for all funds and operations in 2013 is $9,295,000 and for the general fund is $7,789,400. This is a projected increase of$392,300 (includes all personnel costs, such as FICA withholdings, etc , for elected officials, full-time, part-time, and seasonal employees for all funds and operations) over the 2012 adopted budget and an increase of$341,000 for the general fund. The following is a chart identifying the projected cost difference between the 2012 adopted and 2013 proposed personnel budgets. Cost Comparison of the 2012 Adopted Budget and 2013 City Manager Proposed Budget for Union and Non-Union Personnel (Includes Compensation, Insurance Contributions, FICA, PERA, Workers Compensation, and Other Misc. Personnel Expenditures). C\Documents and Settings\kbruno\Local Settings\Temporary Internet Files\OLK9D\2013 Budget September 4 2012 doc