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Buellton council adopts formal COLA policy tied to CPI-W, cites $103,816 near-term cost
Summary
The council unanimously approved Resolution No. 26-10 on May 14, establishing an annual COLA tied to the CPI-W (Los Angeles-Long Beach-Anaheim) with a 0'5% range and 5% cap; staff estimated a fiscal 2026-27 cost of about $103,816 across funds.
The Buellton City Council unanimously adopted Resolution No. 26-10 at its May 14 meeting to formalize annual cost-of-living adjustments (COLA) for regular full-time employees.
Finance staff proposed tying COLAs to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles-Long Beach-Anaheim region because the Bureau of Labor Statistics does not provide a Santa Barbara County-specific CPI-W. Staff noted the 2025 annual CPI-W was 3.2% and that adopting the automatic formula supports predictable budgeting, recruitment and retention.
Under the resolution: if CPI-W is between 0% and 5% the COLA equals the CPI-W; if CPI-W is negative the COLA is 0%; and if CPI-W exceeds 5% the COLA is capped at 5%. The resolution allows council discretion to override in a particular year. Staff estimated a fiscal-year 2026-27 cost of approximately $103,816 across general, wastewater and water funds.
The council moved, seconded and approved the resolution unanimously.
