Mayor to seek vote next week to reinstate employee COLA funded from pension line

The mayor of Blue Ridge said the city will ask the council next week to approve a budget amendment reallocating pension funds to restore a cost-of-living adjustment (COLA) for city employees.

Finance Director Lisa Hoy told the council the 2026 budget included an 80-and-out pension allocation that currently shows about $366,000 budgeted versus an estimated $196,000 if the pension plan is unchanged. She said the difference could be shifted into department salary lines to cover a COLA and that staff will prepare a resolution for approval at the next regular meeting.

"We have the money there," Lisa Hoy said, explaining the plan to pull funds from the pension line into salary line items and to present a resolution to the council. She estimated the citywide payroll is roughly $2.2 million and that a 3% COLA would cost in the $60,000–$65,000 range after payroll taxes.

Council members asked clarifying questions about the numbers and the timeline. One member noted the budget currently contains about $160,000 more for the pension than would be needed if the 80-and-out plan is not implemented this year; the mayor said the full pension ordinance remains under consideration for next year but not this year.

The mayor said an amendment and resolution will be prepared and the council will vote next week. No formal action was taken at the workshop.

If approved, staff said the resolution will implement the COLA by reallocating the identified pension funds to departmental salary lines and will be reflected in an upcoming budget amendment.