Council signals 7% COLA for budget draft; general fund reserve near 26%

City finance staff reviewed preliminary budget figures during a work session on April 15 and the council indicated a consensus to use a 7% cost-of-living adjustment (COLA) when preparing the tentative budget.

Staff member Nicole walked the council through the revenue and expenditure summaries and the city's fund balances. She reported the city's general fund balance at about 26.19% of the statutory requirement and summarized general fund totals the council reviewed: Nicole said total general fund revenues were about $2,764,770 and total general fund expenditures about $3,645,980 under the draft she presented. Staff described the city's overall position as healthy and debt-free but noted that COLA assumptions affect insurance, retirement, and other benefits, which increase total costs beyond the base wage impact.

Council discussion centered on the appropriate COLA percentage. Several council members said the council should at least match inflationary pressures and benefits cost increases; after discussion the council signaled a preference to "roll a 7%" COLA into the budget draft. A council member noted that the state COLA and Social Security increases were lower (around 2–2.7%), but other council members and staff emphasized that a 7% assumption better covered rising insurance and benefit costs.

Key procedural notes from the meeting: - Staff said the tentative budget should be submitted by June 1; certain changes can be made later in the public process. - Nicole advised councilors to raise questions before the city turns in the tentative budget and to expect follow-up items at the next scheduled meetings.

No formal final budget adoption occurred during the April 15 session; staff will revise the draft using the council's direction and return a tentative budget for public hearings and future votes.