Budget plan boosts salaries and cost of living for retirees

In a recent government meeting, officials discussed the upcoming budget adjustments, focusing on employee compensation and retiree benefits. The budget reflects an 8% increase, which falls short of the anticipated 10 to 15%. A significant aspect of the budget is the introduction of a cost-of-living adjustment (COLA) for retirees, which is set to be implemented under a new framework established by the Texas Municipal Retirement System (TMRS).

Cindy, a key speaker at the meeting, outlined the proposed salary adjustments for city employees, emphasizing the importance of maintaining parity between public safety roles, including firefighters and police officers. The proposed salary structure includes a 9% increase across all steps, with an additional 3% for those moving up a step, resulting in a total potential increase of 12% for some employees.

The meeting also highlighted the necessity of adopting the COLA ordinance before January 1, 2025, to ensure that retirees receive a consistent 30% of the Consumer Price Index (CPI) for the preceding year. This adjustment is designed to provide equitable benefits to all retirees, regardless of their retirement date, marking a shift from previous practices that allowed for retroactive adjustments.

Officials acknowledged the challenges of budget constraints while expressing a commitment to gradually enhance employee compensation. The discussions underscored the city's efforts to balance fiscal responsibility with the need to support its workforce and retirees effectively.