Council discusses emergency budget amendment for retirement contribution and elevator work; retirement vendor choices questioned

Council introduced Ordinance 07-2025 on Feb. 1, 2025, an emergency amendment to the 2025 budget intended to reallocate surplus funds to cover increased employer retirement contributions and other capital needs.

City staff said the measure will cover a proposed increase in employer retirement contribution to 7.5% and that planned elevator work will be held while staff seeks additional details and pricing.

Several council members said the ordinance was not sufficiently detailed. Councilman Herring pressed for a line-by-line display of where funds would be moved and asked how recurring costs would be handled next fiscal year: “We really need to see...what the bottom line is gonna be for each department that you're taking money from,” he said.

Members also questioned the retirement plan procurement and vendor selection process. One councilmember asked whether Mutual of America was the only vendor considered; Councilman Herring urged a review of other providers: “Have y'all looked at Vanguard or Fidelity in relations to...finding a retirement vehicle?” he asked, and reiterated that typical employer matching ranges cited in private-sector plans are 4–5%.

City staff committed to providing a revised budget document and supporting line-item detail. Mr. Stewart, the city manager, said he would try to deliver an updated budget by Feb. 10–11, moving up an earlier target of after the 15th. Staff also agreed to examine additional retirement vendor options and report back.

No final vote was taken on Ordinance 07-2025; the item remains for further review once staff submits the revised budget and vendor analysis.