Bay City officials are set to implement a cost-of-living adjustment (COLA) for city employees, amounting to approximately $1,500, following discussions during the City Council Workshop on August 19, 2025. This adjustment comes in response to a 2.7% increase in the Consumer Price Index (CPI) and aims to ensure fair compensation for city workers.

The council highlighted the importance of maintaining competitive salaries, particularly for the police department, which received an additional COLA last year to address salary concerns. The adjustments are part of a broader strategy to manage the city’s budget effectively while accommodating necessary changes throughout the year.

During the meeting, officials also discussed the implications of insurance premium increases, which are projected to rise by 3%, translating to an additional $43,000 in costs. These expenses will be reflected in the general fund budget, with amendments made as evaluations and changes occur throughout the fiscal year.

The council emphasized the need for a streamlined budgeting process, allowing for easier adjustments and amendments as circumstances change. This approach aims to enhance efficiency in managing the city’s finances while ensuring that all departments receive the necessary funding to operate effectively.

As Bay City moves forward with these financial adjustments, the focus remains on supporting city employees and maintaining essential services for the community. The council's proactive measures are expected to foster a more stable and responsive budgetary environment in the coming year.