Council holds public hearing on FY2025–26 budget as retirees press city on insurance increases and COLA studies

The Mobile City Council opened a public hearing Sept. 9 on the proposed fiscal 2025–26 general fund and capital improvement budgets as retirees and community groups weighed in on benefits, spending priorities and program funding.

Randy Reed, speaking for the Firefighters Retirees Association, said retirees have gone without a cost-of-living adjustment for roughly two decades and asked the council to consider relief amid rising expenses. “These retirees... currently left out making less than what your entrance level pay is right now,” Reed said, urging the city to “please strongly consider a cost of living raise for the retirees.”

During the hearing, city staff said the mayor signed a personnel document after the budget was submitted that will raise monthly health-insurance contributions for some retirees and current employees by about $10 to $36 per month. Scott, the city’s executive director of finance, said the change would not change the budget totals presented to council and estimated the adjustment’s net effect for the city at roughly $800,000 annually; he said those funds would return to the general fund.

Scott also said the magazine of administrative authority allowed the mayor to adjust employee premium contributions and that the premium change was executed administratively after the budget submission. Council members asked whether such post-submission changes require council approval; Scott said it was his understanding the change is an executive-branch administrative action.

Council members pressed for information about a possible cost-of-living adjustment (COLA) for retirees. Scott and other administration speakers said the city and the pension board are prepared to commission actuarial work to quantify the long-term cost and that the city is discussing next steps with the pension board and actuary. Council members warned that any raise for retirees would create a perpetual cost that requires actuarial study before a decision.

Community groups and citizens also spoke during the hearing. Jabaria Dent of the Boys & Girls Clubs of South Alabama asked the council to fund an expansion called Bridges to Great Futures, seeking an additional $200,000 per year from the city as part of a three-year, $600,000 plan to serve five middle schools and grow the organization's reach. Reggie Hill raised concerns about capital allocations and urged more CIP money for drainage and district-level needs.

Why it matters: The budget hearing exposed several follow-ups the council must answer before final approval — how to respond to post-submission administrative changes to employee benefits, whether the city will pursue an actuary study and whether the council will shift resources to social services or public safety in coming budget votes.

What comes next: Administration said documents on the insurance change are in HR and will be distributed to council members. Council members asked for actuarial information from the pension board to understand the cost of a COLA. The council will continue budget deliberations in committee and at future council meetings.