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Council discusses COLA, merit pay and flexible benefits including possible childcare vouchers
Summary
The council and staff reviewed next year’s personnel cost assumptions, the merit program’s first‑year results ($215,000 total merit cost) and whether pre‑tax childcare vouchers or other flexible benefits should be offered as budget‑neutral employee options.
City staff and council spent substantial time on May 5 discussing personnel‑cost assumptions as the council set priorities for the FY26 budget. Staff presented the prior year’s compensation changes and the proposed structure going forward, and councilmembers raised questions about merit pay, market adjustments and possible new fringe benefits.
Key points from staff: staff said the city budget is personnel‑driven; payroll for the general fund alone was cited at about $20 million. The prior year’s cost elements included a 3%…
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