Council pauses vote on city manager cost-of-living contract addendum; moves to postpone pending Q2 revenue review
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Summary
A proposed 3.7% cost-of-living amendment to City Manager Stacy Denham's employment agreement was introduced but councilmember Kevin moved to postpone action until after the city's second-quarter revenue projection review; the postponement motion carried and the addendum was not approved at the meeting.
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.