Council considered an addendum to City Manager Stacy Denham's employment agreement on Aug. 11, 2025, that would apply a 3.7% cost-of-living adjustment (COLA) retroactive to the manager's 06/01/2025 anniversary date.

Administration staff said the proposed 3.7% figure reflects the employee-group COLA adopted for 2025; staff estimated the fiscal impact at roughly $3,669 annually and said the preliminary 2025 budget does not include the amount, so a budget amendment would be required.

Councilmember Kevin moved to postpone the item until after the council had reviewed second-quarter revenue projections; the motion to postpone was seconded and carried by voice vote at the meeting. As a result, the addendum was not adopted on Aug. 11 and will return for council action after the requested financial review.

During discussion, council members debated whether a contractual COLA should be automatic each year or tied to performance and general fund capacity; members otherwise expressed support for the city manager's performance. Staff noted the city typically considers budget capacity and negotiated employee increases when setting manager compensation.

No roll-call tally was recorded in the meeting transcript; the meeting record shows the postponement motion passed by voice vote.