During a recent government meeting, council members discussed the implications of hazard pay negotiations on the upcoming budget, highlighting concerns over potential shortfalls. One member raised alarms about an estimated $25 to $50 million deficit for the next fiscal year, which could significantly impact the operating budget. The managing director is reportedly in advanced discussions with unions, particularly the United Public Workers (UPW), to reach a settlement that may involve a mix of cash and vacation compensation.

The council has earmarked $115 million in the 2025 budget for hazard pay, but officials acknowledged that this amount is likely insufficient. The urgency of finalizing these negotiations by the end of October was emphasized, as it would influence the planning for various Real Property Tax (RPT) bills.

In a related discussion, council members examined the average increase in property taxes for homeowners claiming exemptions over the past five years. The director noted fluctuations in assessed valuations, with significant increases observed post-pandemic, while recent trends suggest a stabilization in property values.

One council member proposed a temporary pause on property tax exemptions to fund hazard pay, framing it as a necessary emergency measure. The feasibility of this idea remains uncertain, as it would require public support.

The meeting concluded with questions regarding the timeline for hazard pay distribution, with officials indicating that a payment plan has yet to be finalized. They expressed hope that resolutions could be achieved within two fiscal years, potentially allowing for compensation through additional vacation or comp time for employees.