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Resident urges Sunset Beach to study employee pay after proposed COLA cut
Summary
A resident told council the 2026–27 budget proposal weakens town employee compensation by cutting COLA, reducing dependent health coverage for new hires and replacing step increases with a merit system, and asked for a detailed study before enacting changes.
A Sunset Beach resident urged the council to examine employee compensation before finalizing changes in the 2026–27 budget.
Mike Hargraves (612 Deacon Court) told council that competitive pay is essential to recruit and retain quality employees and said the proposed budget moves the town "a little bit backward" on compensation. He cited several specific changes in the draft budget: elimination of COLA (cost-of-living adjustment), reduction of dependent health-care contributions to 25% for employees hired after June 30, and a proposed shift from a step pay program to a merit-based system. "The long long-standing practice of our town has always been to monitor the actions of neighboring towns regarding compensation," Hargraves said, and he warned that without competitive pay the town may lose employees after investing in training.
Hargraves asked council to undertake a careful study, presenting pros and cons and clear costs of any compensation changes, rather than implementing the proposed adjustments without fuller analysis. Council did not take immediate action on his request during the hearing.
His remarks highlight employee-retention and recruitment concerns that could affect police, fire and other municipal services if not addressed during budget implementation.
