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HR proposes 5% compensation adjustment and discusses TMRS change under HB3161
Summary
HR manager Elena Cohen presented a proposed 5% total compensation adjustment (2.5% COLA, 2.5% merit) and outlined potential costs and funding implications if the council adopts the House Bill 3,161 change to an 8% employee TMRS contribution.
Elena Cohen, the city's HR manager, told council the proposed FY2025–26 budget includes a 5% total compensation adjustment composed of a 2.5% cost‑of‑living adjustment tied to the CPI‑W and a 2.5% merit pool to be allocated by department heads.
Cohen also explained House Bill 3,161 (effective Sept. 1, 2025) would permit cities in TMRS to designate an 8% employee contribution rate. She reported staff modeling that the city's employer contribution would rise to roughly 16.79% in year one with an estimated first‑year additional cost of $141,173, and that funded ratios would drop in the short term before recovering over subsequent years. Council discussed employee communications, staging implementation and whether to include the change in the proposed budget.
