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Isanti council votes 3% COLA for non‑union staff after debate on retention and budget pressure
Summary
After extended debate about staff recruitment, step increases and fiscal impact, the council approved a 3% cost‑of‑living adjustment for non‑union employees in 2026 by a 4–1 vote; staff will update budget documents and return final budget items on Dec. 16.
The Isanti City Council approved a 3% cost‑of‑living adjustment (COLA) for non‑union city employees after more than an hour of discussion about staff retention, step increases and budgetary constraints.
Council members and staff debated whether to keep the 3.5% preliminary COLA in the budget or reduce it to 3% to ease funding pressure. Proponents of a lower COLA said 3% has been the historical standard, would limit future budget jumps and was close to Social Security’s estimated COLA. Council members who favored the larger increase argued that turnover, staffing shortages and the extra duties taken on by remaining employees justified a higher adjustment.
Staff described the city’s nine-step pay scale (one step per year for many positions), explained how step increases compound with a separate COLA decision, and said roughly half of non‑union employees were near or at the top of the scale and could be affected differently by alternative approaches such as expanding steps or creating merit-based steps.
Council Member Homegrren moved the 3% COLA motion and Council Member Peterson seconded. The motion passed 4–1; one council member recorded opposition but the transcript did not record the name of the dissenter. City staff will update payroll numbers and bring final budget resolutions back for the Dec. 16 meeting.
