Columbia Falls city staff outlined personnel and benefits priorities for the proposed fiscal 2026 budget at a council workshop, emphasizing a multi-percent compensation increase, continued high employer health insurance coverage and two planned hires.

City staff said the draft budget assumes roughly 5–6% total wage growth for the coming year, including a 2% step increase that applies to all eligible employees and other merit components. Staff told council members the city historically has provided higher-than-average employer-paid health insurance and plans to continue covering about 90% of employee insurance premiums under the recommended FY26 plan.

The staff presentation said insurance premiums have grown rapidly, with a reported 12.2% increase in rates this year and double-digit growth over the last two years. Staff noted the city uses a permissive medical levy to cover part of the cost and indicated that levy currently covers a little over half of the city’s employer insurance expense, with the remainder paid from the general fund. Staff said the draft budget seeks council approval of a staff-recommended insurance plan at the upcoming regular council meeting.

On staffing, city staff described two personnel additions in the FY26 plan: a grant-management/accounting position to centralize grant administration and a firefighter position expected to be added in second or third quarter. The presentation flagged ongoing overtime pressures in the police department and described hiring efforts to reduce overtime costs.

Discussion at the workshop included council questions about whether the budget statement should emphasize maintaining current service levels or explicitly reference planning for future expansion. Staff reiterated the annual budget focuses on the next fiscal year but that capital planning remains distinct.

City staff characterized the personnel priorities as part of a retention strategy, saying family coverage and stable compensation help retain trained employees. No formal action or vote occurred at the workshop; staff said specific personnel-related items will return for formal consideration at future committee and regular council meetings.