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Bel Air proposes pay-scale overhaul, 2.9% COLA as part of FY26 budget
Summary
Town staff presented a restructured classification and pay schedule and recommended a 2.9% cost-of-living increase; commissioners asked how recurring costs would be funded and staff said one-time transition costs would come from reserves while future merit and COLA are expected to be covered by ongoing revenues and vacancy savings.
Bel Air staff on April 24 proposed a restructured classification-and-compensation plan and a 2.9% cost-of-living adjustment (COLA) for fiscal year 2026 to address turnover, particularly in public works positions.
In a presentation to the Town Commission, a staff member identified only as Michael summarized a set of changes to the town’s pay schedules, including adding new top-of-scale steps for long-serving employees and realigning multiple public-works titles into the general pay plan. Michael said the reform is intended to reduce turnover and correct long-standing pay misalignments.
The plan would add seven half-percent steps (shifting the schedule from 19 to 26 steps) and move a set of labor-intensive classifications — laborer, refuse collector, equipment operator and similar titles — to higher placement on the new scale. Michael told commissioners the average immediate impact across all employees would be about a 3.99% increase, with most employees seeing roughly a 2.97% placement adjustment and a smaller number receiving larger adjustments (up to about 6.9%) because of the regrading.
Town Administrator Eddie and finance staff said the one-time cost to move employees onto the new pay grid — roughly $313,000 in FY26 — would come from unassigned fund balance, while the recommended 2.9% COLA and routine merit steps would be budgeted from current-year operating revenues. Staff noted expected future savings from retirements and other turnover would help absorb the higher base payroll going forward.
Commissioners pressed staff about ongoing affordability. “That transition cost is a one-time placement,” Michael said, adding that future merit and COLA obligations will affect recurrent spending but are manageable within planned revenue assumptions and normal turnover savings. Several commissioners said they were reassured but asked staff to continue monitoring the town’s ability to fund recurring salary obligations in future budgets.
Why it matters: Commissioners described public works turnover as acute and costly, and staff said the pay changes target positions with the highest departure rates. The proposal is intended to reduce hiring and training turnover costs and to realign pay for fairness across departments.
Next steps: The pay-schedule revisions were detailed for commissioners to review and will be included in the FY26 budget the commission continues to refine. Commissioners asked staff to provide follow-up materials on funding assumptions and to monitor the budget impact into FY27.
