Cutler Bay councilors debate changing employee COLA formula, discuss caps and timing

Summary

At a May 21 workshop, Vice Mayor Mike Callaghan urged the council to change how the town calculates cost-of-living adjustments (COLA), proposing a return to the Consumer Price Index used by Social Security and a cap for high earners; other council members urged keeping the Miami‑Dade modifier to retain staff and protect recruitment.

Vice Mayor Mike Callaghan proposed revising the Town of Cutler Bay’s method for calculating employee cost‑of‑living adjustments during a council workshop on May 21, saying the town’s current approach produces higher percentages than Social Security and is difficult to explain to residents on fixed incomes.

Callaghan said the town’s COLA calculation was moved in 2017 from the national urban Consumer Price Index (CPI) used by Social Security to a Miami‑Dade/Broward/West Palm Beach regional modifier when Resolution 17‑30 codified COLA in the budget process. “I’m not suggesting at all that COLA be removed,” Callaghan said, but he urged reverting to the standard urban CPI and adding a cap on COLA payments either by salary range or a fixed dollar threshold.

Why it matters: Council members said the change affects hiring and retention as well as the town budget and political messaging to residents who receive Social Security. Councilmember Duncan and others argued that using the South Florida modifier better reflects local costs and helps the town retain employees.

Discussion highlights

- Calculation method: Callaghan said COLA in Cutler Bay has been based on the Miami‑Dade regional modifier since Resolution 17‑30 (2017) and recommended returning to the national urban CPI used by…

Cutler Bay councilors debate changing employee COLA formula, discuss caps and timing

Summary

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