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Henderson board adopts 3% COLA, approves employee benefits and passes first readings on budget and water rates
Summary
The Henderson Board of Mayor and Aldermen on May 14 adopted a 3% cost-of-living adjustment and approved employee pay-scale changes, set a 10% retirement match, and passed first readings of the 2026–2027 budget and a 5% water and sewer rate increase.
The Board of Mayor and Aldermen of the City of Henderson on May 14 adopted Resolution #2026-005 applying a 3% cost-of-living adjustment and revised pay scales for city employees, and approved several related personnel measures.
Recorder Jim E. Garland summarized the changes, which include longevity/bonus pay, a revised “Stipends for Collateral Assignments” program for police and fire personnel, and an effective date of June 22, 2026 for pay-scale changes tied to the new fiscal year. Ald. Mark A. Barber moved to adopt Resolution #2026-005; Ald. Keith Smith seconded. The roll call vote was recorded as five ayes, no nays, with Ald. Michael Phelps absent.
In related personnel action, the board approved setting the city’s matching retirement contribution at 10% for the 2026–2027 budget year. Recorder Garland noted the packet showed a minimum actuarial rate of 7.03%; Ald. Donna R. Butler moved to set the match at 10% and the motion carried.
On finance measures, the board approved the 2026–2027 City Budget and Tax Rate Ordinance on its first reading. Recorder Garland said the proposed budget had been discussed in budget meetings and that the tax rate would remain the same as the prior year. A public hearing and second reading are scheduled for the June meeting.
Also on first reading the board approved an ordinance amending Municipal Code Sections 4-222 and 4-223 to revise employee vacation and sick leave policies effective retroactively to Jan. 1, 2026. Ald. Mark A. Barber moved the ordinance on first reading and Ald. Jason Rhodes seconded; the motion passed and a second reading will occur at the next regular meeting.
The board considered and approved, on first reading, an ordinance to increase water and sewer rates by 5% effective July 1, 2026. Ald. Keith Smith said he was not a fan of raising rates but preferred the increase to potential state intervention (minutes refer to “TBOUR” in that context). Ald. Smith moved the ordinance on first reading and Ald. Jason Rhodes seconded; the roll call vote passed.
Votes at a glance: - Resolution #2026-005 (3% COLA, revised pay scales): mover Ald. Mark A. Barber; second Ald. Keith Smith; outcome: approved (Ayes: Barber, Butler, Maness, Rhodes, Smith; Absent: Phelps). - Matching retirement rate set at 10%: mover Ald. Donna R. Butler; second Ald. Jason Rhodes; outcome: approved. - 2026–2027 Budget and Tax Rate Ordinance (first reading): mover Ald. Donna R. Butler; second Ald. Keith Smith; outcome: approved (first reading). - Ordinance to amend Sections 4-222 and 4-223 (vacation/sick leave) (first reading): mover Ald. Mark A. Barber; second Ald. Jason Rhodes; outcome: approved (first reading). - Water and sewer rates ordinance (5% increase) (first reading): mover Ald. Keith Smith; second Ald. Jason Rhodes; outcome: approved (first reading).
Why it matters: The COLA, retirement-match decision and pay-scale changes affect the city’s workforce and payroll costs. The budget and water/sewer rate changes set the framework for the coming fiscal year and could influence household and business utility bills if the ordinance is adopted after the required second reading and public hearing.
The board scheduled a June public hearing for the budget and set second readings for the ordinances; no final adoption of the budget or water/sewer rate changes occurred at this meeting.
Sources: meeting minutes for the Board of Mayor and Aldermen, City of Henderson, May 14, 2026. First references in this article identify speakers by full name and title as recorded in the minutes.
