Osage Beach aldermen revise pay plan: COLA raised, retirement match cut from draft budget

Osage Beach aldermen adjusted the personnel portion of the draft fiscal 2026 budget after a lengthened discussion about recruitment, retention and budget balance. After debate over whether to prioritize across‑the‑board pay or merit increases, the board agreed to raise the proposed premium cost‑of‑living adjustment to 3% and to reduce the proposed merit chart amounts by about a half‑percentage point; members also agreed to drop a proposed 1% employer retirement match from the draft because the city cannot afford it in the current projections.

The discussion began when staff presented a recommended “premium” cost‑of‑living increase of 2.5% (CBIZ had recommended 2.6%). Several aldermen argued that boosting base pay would improve recruiting for entry‑level positions, while others favored awarding larger merit increases to reward performance and retain current employees. “I’d rather stick with the increase in the cost‑of‑living than matching retirement funds,” one member said during the deliberations; another said they preferred a stronger base in order to attract applicants into classes 5–8.

Board members noted the city has previously increased base salaries substantially in recent years; staff reported a roughly 17.25% increase in base pay from 2022–2025 and discussed an ongoing compensation study designed to align pay scales with regional comparators. The board asked that the compensation study be prioritized and that any additional adjustments be considered after the study’s results are returned.

Staff said health insurance cost assumptions in the draft assume a 5% premium increase for FY26 and 3% for dental and vision; those assumptions remain in the draft unless better vendor estimates are received. The finance presenter said the personnel changes discussed will be reflected in an updated budget to be circulated for further review.

The board’s changes were made by consensus during the workshop; no formal roll‑call vote was recorded in the transcript of this session. Staff will update the draft budget to reflect the adjusted COLA, reduced merit amounts and removal of the 1% retirement match before the next budget meeting.