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IV.2. Approval of 2024-2026 Contract with Police Officers Association; Bishop CITY OF HOPKINS City Council Report 2024-016 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: February 13, 2024 Subject: Approval of 2024-2026 Contract with Police Officers Association _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve 2024-2026 Union Contract with the Hopkins Police Officers Association OVERVIEW The City completed a compensation study in early 2023 to better understand market conditions citywide. There was a market gap for police officer compensation and due to the tight labor market for qualified police officers regionally. The Police Officer Association has agreed to a separate memorandum of understanding that implements the results of the compensation study as of 9/10/2023. Both the MOU and 2024-2026 contracts were negotiated jointly. The 2024-2026 contract should only be approved if the MOU is also approved. The contract calls for a 4.0% wage increase effective January 1, 2024 and a 3.0% wage increase effective January 1, 2025 and 2026. Insurance contributions are consistent with other settled contracts. The contract includes higher rates of pay for field training officers, on call detective pay, K-9 officer pay and implements a fitness incentive. The compensation in this agreement is consistent with the results of the compensation study and has increases that allow Hopkins to be competitive in the labor market. The approved 2024 budget was prepared based on staff’s best estimate for a settled contract and included estimates for wage increases and step movements similar to other settled contracts. The contract being proposed does exceed budgeted amounts. The City Council authorized the hiring of two new police officer positions with Minnesota Public Safety Aid. In order to stay within budget, staff is proposing hiring one position and using the remaining funds for the increased contract amounts. SUPPORTING INFORMATION • 2024-2026 Contract with Hopkins Police Officer Association Finance Department