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Based on national averages and municipal budget structures, the salary cost to operate a city of 126,000 people can vary widely depending on the services provided, but generally falls in the range of $100 million to over $200 million annually in total compensation (salaries and benefits). [1, 2]  

Key Takeaways for a 126,000 Population City 

• Total Compensation Per Resident: In many municipal environments, particularly in high-cost or high-service areas (like California cities), per-resident costs for staff can reach $1,000 to $2,000+. 

• Estimated Salary Budget: For a city of 126,000, assuming a moderate per-capita spending of $1,000-$1,500 on total payroll, the annual budget for salaries and benefits would be roughly $126 million to $189 million. 

• Staffing Levels: A city of this size might have a staff ranging from 1,000 to over 2,000 employees depending on whether they operate, for example, their own airports or utilities. 

• Percentage of Budget: Salaries and benefits are usually the largest component of a city's general fund, often exceeding 50-60% of the total budget in many local governments. [3, 4]  

Factors Influencing Cost 

• Benefits (38-44%): Salary costs are not just wages. Benefits (health, pension, retirement) can add 38% or more to base wages, with local government compensation often averaging $52.94 per hour. 

• Service Level: A "full-service" city (police, fire, EMS, water, libraries) requires a much higher salary budget than a city that contracts out those services. 

• Regional Variation: Costs in high-cost-of-living areas (e.g., California) are significantly higher than national averages. [2, 4, 5, 6, 7]  

Disclaimer: These figures are general estimates based on national averages and not specific to any one city. 

AI responses may include mistakes.

[1] https://getbenepass.com/blog/what-is-the-average-cost-of-benefits-per-employee-the-complete-guide

[2] https://www.bls.gov/opub/ted/2020/state-and-local-government-compensation-costs-average-52-94-per-hour-worked-in-september-2020.htm

[3] https://www.cbpp.org/research/some-basic-facts-on-state-and-local-government-workers

[4] https://www.siliconvalley.com/2024/08/23/5-charts-that-show-how-california-cities-spent-37-billion-on-public-employees-last-year/

[5] https://help.liveplan.com/understanding-the-numbers/forecasting-revenue-expenses-direct-costs-personnel/employee-taxes-and-benefits

[6] https://www.bls.gov/news.release/pdf/ecec.pdf

[7] https://finance.yahoo.com/personal-finance/banking/article/cost-of-living-by-state-164246058.html

Henry McClure  
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