Council delays vote on retirees' COLA pending actuarial review

Councilman Woods said he supports a cost-of-living adjustment for retirees but asked for clearer budget projections before a final vote. "I'm a yes on this," he said, "but would like at least some sort of illustration or proof of what the potential or projected impact would be on the budget."

A pension-plan representative provided figures: "The increase to benefits is about $490,000 a year," the representative said, and explained that total annual benefits paid to retirees fall in the "$18 and $19,000,000 a year" range. City staff and the actuary said plan benefits are paid from plan assets and that actuarial smoothing spreads gains and losses over multiple years so market swings do not immediately spike the city's budget contribution. City staff also said an actuarial report would be distributed to council members for review.

The council agreed to hold the item for further review, asking staff to provide the actuarial report and projections so members can confirm how the change would affect annual contributions. Vice President (presiding) and other members stressed they support retirees receiving a COLA but want to see the numbers and the report before taking final action; the item was laid over for one to two weeks with a plan to vote at the next meeting after members review the materials.

Next steps: staff will provide the actuarial report and a clear projection of the budgetary impact; council expects to consider the COLA at the following meeting.