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Council adopts 3% pay increase for nonbargaining employees after debate over taxes
Summary
The Waterloo City Council on June 15 approved a 3% salary increase for nonbargaining employees effective July 1, 2026, after objections from two councilmembers who questioned the source of funds and cited high property-tax rates. Finance staff said the increases come from the general fund or the respective operating funds for non‑general‑fund positions.
The Waterloo City Council voted June 15 to approve a 3% across‑the‑board pay increase for nonbargaining city employees, effective July 1, 2026.
Council discussion focused on where the money would come from and broader concerns about the city’s property‑tax burden. A councilmember who opposed the measure said Waterloo’s property-tax rate ranks among the highest in Iowa and warned the city must “figure out a way to live within our means,” adding, “That is why I voted against the budget ... and that’s why I’ll vote against this.” The speaker did not identify themselves by name on the record.
Bridgette Wood, the city’s finance director, explained the funding source: “The increases are from, if it’s in the general fund, it comes from our general fund levy. If it is not in the general fund ... it would come from their coordinating fund or revenue source.”
Other councilmembers said the raises were intended to align nonbargaining compensation with negotiated bargained increases for union employees. After discussion the council held a roll‑call vote and approved the resolution; two members voted no and the measure carried.
The raise applies only to nonbargaining employees and is separate from negotiated increases for bargaining units. The council did not direct additional follow‑up actions beyond implementing the increase and notifying affected personnel.
