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Trustees review personnel budget: staff propose 3% pool split for COLA and merit amid rising health insurance costs
Summary
HR presented a personnel budget proposal that includes a combined 3 percent pool for cost-of-living and merit increases and insurance premium increases; trustees discussed timing, benchmarks and potential higher COLA given regional trends.
Stephanie Anderson, the town's human resources director, presented the personnel portion of the draft operating budget and explained assumptions driving the proposed staffing costs. Anderson said the draft assumes a combined 3 percent pool that will be split between cost-of-living adjustment (COLA) and merit increases — not 3 percent for each — and that benefit-line estimates reflect newly quoted rates and a 13.5 percent increase from the Colorado Employers Benefit Trust (CEBT) over the prior two years.
Anderson told trustees the town surveyed staff about ways to offset health insurance cost increases and that most employees chose to move to a lower-cost plan tier to avoid large spikes in monthly premiums; the change increases deductibles but retains the same provider network. She also noted retirement (401a) contributions, long-term disability and workers' compensation were included in benefit lines and that the budget uses current employee elections as the baseline; changes in open enrollment or mid-year life events could alter those figures.
Trustees debated whether a 3 percent pool is adequate. Several trustees said they favor holding at 3 percent for now while monitoring revenues; others urged higher COLA or tying the adjustment to a verifiable regional index. Trustee Preston Regan and Trustee Chris Kim both supported the 3 percent starting point but said COLA and merit should be clearly separated and that COLA be set in line with regional cost-of-living data. Trustee comments emphasized the importance of retaining staff and the costs of turnover in public-works roles.
No final adoption was made; trustees directed staff to continue refining revenue projections and to bring forward final budget figures during the upcoming budget process. Anderson said the town will conduct a compensation study next year (budgeted in professional services) and will use performance review scores to allocate the merit portion of any pool.
