Council debates pay changes, COLA and housing stipend in FY2026 draft

Council members and staff reviewed wage and benefit assumptions built into the FY2026 draft and discussed how those costs affect long-term savings.

Finance staff said the draft assumes a 3% cost-of-living adjustment (COLA) applied July 1 and a possible merit pool of up to 4% (merit increases are granted on employee anniversaries, not uniformly on July 1). Staff said those two elements are budgeted as possible increases: the COLA is straightforward, while merit increases are subject to performance and supervisory discretion.

The council also queried a housing allowance that staff reported as $400 per month (distributed across paychecks as two payments), though several members said they remembered an earlier $200-per-month figure and asked staff to confirm the program's exact design. Staff acknowledged mixed recollections and said they would verify whether the allowance is $200 or $400 per month and confirm whether it is treated as a pay-period stipend for payroll software reasons.

One staff member noted a proposed vehicle stipend of $12,000 annually for a specific position was included in an individual department worksheet; councilors said they did not support adding a recurring $12,000 stipend without a formal presentation and justification. Members also discussed that additional wage and benefit increases 'if granted in whole'would reduce the modest projected transfer to CIP and urged caution when moving beyond the budgeted COLA and merit assumptions.

Ending: Staff will confirm the exact housing allowance mechanics and proposed stipends and will return with corrected wage figures for the next budget session.