Council debates TMRS cost‑of‑living adjustment; staff urges action to meet state window

Council held an extended discussion about a TMRS cost‑of‑living adjustment (COLA) for retirees, reviewing funding ratios, catch‑up mechanics and recruitment implications.

Staff explained the town participates in the Texas Municipal Retirement System and that a $1 million liability buy‑down from prior funds created room to introduce a COLA without creating an immediate funding shortfall. Staff said the state permitted a limited non‑retroactive window for municipalities and recommended adopting an initial 30% of CPI COLA (the 30% figure refers to the percentage of annual CPI applied to benefits, not 30% of total benefit amounts).

Council members asked whether to apply a catch‑up for existing retirees or step into the program gradually for future retirees. Resident Rena Hardeman urged the council to pull items from the consent agenda so the public can see commitments and asked how the catch‑up would work: "Can you commit to a certain level of COLA, and do you just automatically keep going up to the 50, to the 70? Can you go back down? How does all of this work?" Councilors and staff said the choice to add a COLA is a long‑term commitment if adopted and that the town can consider phased increases in future budgets.

The transcript records a motion to adopt the staff‑recommended option to meet TMRS timelines; the provided segments do not include a final roll‑call result for that motion in the transcript excerpt. Staff emphasized the action's timing was driven by the TMRS window and that once implemented certain ratchet rules may prevent reversing or stepping down without fiscal consequences.