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Council weighs FY26 compensation changes after multiyear pay increases; finance director flags bond timing
Summary
Councilmembers debated FY26 budget and staff compensation changes after three prior cycles of added pay increases that staff say have compounded to about $7.1 million over four years; staff warned not adjusting pay structure would have required a large property‑tax increase and described efforts to align with peer cities and to phase enforcement of benefit adjustments.
Finance Director Scott Georges briefed the council on the FY26 proposed budget and timing: the city will sell a $20 million general‑obligation bond this week, with debt‑service figures to be available in early June and funds to be released on June 4, and final property‑tax figures expected about June 10. He noted staff will update budget pages in time for the next council meeting.
Council then discussed compensation changes. The mayor and council members reviewed multiyear increases: roughly $2.1 million added above base pay across three past budget cycles, compounding to $4.6 million over time; the FY26 proposal adds roughly $400,000 more, bringing the cumulative increase over four cycles to about $7.1 million. Council members said they sought to avoid doubling the city’s property‑tax mill rate and therefore directed the city manager to align with peer jurisdictions on step/merit/COLA practices.
Members acknowledged staff concern about benefit reductions (a $100/month change in medical-in-lieu was cited) and emphasized they value staff while balancing taxpayer burden. Council described having applied multiple metrics historically (COLA, step, merit) and acknowledged painful trade‑offs in realignment to peer practices. Several councilmembers urged transparency and continued dialogue with staff about compensation and benefits.
The council asked staff to bring back finalized debt‑service numbers after the bond sale and to provide clearer, staff‑level explanations for any benefit changes so the council can communicate with employees.
