Managing Director of Finance Colin Booth presented the city council with an overview of 2026 budget concerns.
In a follow-up to public comments last session, the presentation included options to add a cost of living adjustment for City of Waco retirees.
"We want to be responsive to our retirees," City Manager Bradley Ford said.
Managing Director of Finance Colin Booth told the council they had multiple options in funding the adjustment for the more than 1200 retirees. The options included a 30%, 50% and 70% adjustment, all with the option to be retroactive.
The adjustment could cost anywhere from 1 million to 11 million dollars annually, depending on the plan the council selects. City Manager Bradley Ford said they will consider that in their decision.
"Those decisions are very weighty decisions financially," Ford said. "We want to make sure as we’re conversating about COLA, or changes to COLA, that we’re putting those numbers out."
At the May 20 council meeting, community member Sharon Hetherington asked the council to consider a 70% retroactive cost of living adjustment, since she said retirees had not received any adjustment in over a decade.
The presentation also highlighted the status of federal grant funding for the current budget, in light of recent cuts nationwide. The city has retained most of its grants but, $4.2 million in grants were canceled.
Managing Director of Finance Colin Booth told the council those grants mostly affect the health department and the housing and community development department. There are still some grants that are pending.
Mayor Pro Temp Andrea Barefield said this leaves the council floundering.
"Because that is $4.2 million that our community has to do without," she said. "What do they [federal agencies] expect us to do for our communities?"
The presentation also included an overview of the city’s annual general fund usage and funding, the five-year plan to decrease funding for outside agencies – which includes many local non-profits, and the impact of property tax exemptions on the state’s revenue.
The City Council will review the budget suggestions and make decision regarding the FY26 budget at a later date.
