Osage Beach aldermen scale back proposed raises as general fund falls short

Mayor Harmonson opened the budget discussion by presenting historical merit and premium cost‑of‑living (COLA) adjustments and said the city cannot sustain the large raises it approved in recent years.

“This is a hard conversation,” Mayor Harmonson said, adding he is “absolutely in favor of giving every employee a raise,” but that the general fund is not balanced and staff must be cautious. He noted CViz’s 2.6% COLA recommendation and proposed reducing the merit pool from earlier proposals.

Aldermen asked questions about how to set the budgeted average for merit increases. Staff explained past unusually large increases—partly to “catch up” after prior under‑indexing—are not sustainable year over year and that evaluations and management turnover can change how merit pools are applied. One alderman urged caution, noting that a 2.6% COLA is slightly above recently projected regional CPI and that the officially released CPI figures for September would offer final context in days.

Devin, a city staff member, emphasized the city’s inability to sustain recent high percentages and said projections for 2026 are not likely to produce the revenue pickup needed to fund larger raises. Aldermen discussed options: budget conservatively (using a 2% average for line‑item planning), include language allowing a midyear adjustment if sales tax revenue improves, and proceed with a citywide compensation study scheduled to begin in January to re‑examine position classifications and pay ranges.

The discussion closed with staff direction to show budget line items using a conservative basis while retaining flexibility for midyear adjustments and to return results following the compensation study.