La Plata finance committee backs 457 retirement plan; council delays final budget decision as utility rate increases proposed

At a La Plata Town Council meeting, volunteer members of the town finance committee recommended that the town adopt a 457 retirement plan option rather than create and manage a standalone town pension, while town staff presented three draft FY2026 budgets and proposed modest utility rate increases to address capital and operating shortfalls. The council voted to amend the budget calendar and agreed to continue budget deliberations at a later meeting.

The finance committee presented a comparison of retirement approaches and concluded the committee “is in full support of providing some additional retirement program to the police and the qualified people in public works,” but warned that having the town manage its own pension would be “extremely financially risky to the town,” said Mike Ann, speaking for the committee. The presentation cited actuarial, legal and administrative complexity and pointed the council toward existing providers and 457-style plans used by other public employers.

Treasurer Larson told the council she had prepared three budget scenarios: the town manager’s draft, a draft that assumes the previously discussed “enhanced pension” option, and a third that implements the finance committee’s recommendations. Larson said the enterprise funds would be affected by the council’s decision on the general fund and…