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Council backs 3% pay adjustment, debates director pay structure
Summary
City staff proposed a 3% cost-of-living increase affecting base pay, longevity and premiums; council raised concerns about large pay jumps between vacancy-step rehires and current directors and asked for evaluation-based eligibility for director raises.
City staff told the council the proposed FY2026—27 budget includes a 3% cost-of-living increase for employees, estimated at about $981,000 overall, with approximately $718,000 charged to the general fund.
During the presentation council members questioned large step increases for certain director positions when vacancies are refilled. One council member said some assistant directors currently earn as much as directors and urged the city to maintain competitive pay "so you should reward your director adequately and maintain them at a certain level and not lower their morale underpaid." Staff and council referenced earlier direction that directors undergo evaluations before receiving the 3% increase; administration said evaluations would be used to set expectations and ensure accountability.
Council did not change the COLA in the first reading but flagged the issue for follow-up, asking staff to apply evaluations and report back before the raise is implemented for director positions.
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