County staff recommend 2% COLA, 3% merit; commissioners debate elected-official pay and retiree increases

Alan Frederick, Williamson County's chief people officer, presented the county's salary-study findings and recommended a 2% cost-of-living adjustment (COLA) and a roughly 3% merit pool for FY2027, which together produce a 5% average increase for employees. Frederick said the direct cost estimate for COLA and merit is about $7,000,000 and that step increases and tenure-chart recommendations add roughly $2,300,000.

The presentation explained that the county benchmarks using Bureau of Labor Statistics CPI data for the Dallas-Fort Worth and Houston markets (BLS does not publish a distinct Austin market CPI). Frederick said the recommended COLA matches local CPI trends and that the compensation team reviewed 445 positions across 27 classifications. He also noted the recommended increases do not include elected-official pay; those amounts are calculated separately and are subject to a statutory grievance process for elected officials.

Commissioners debated whether elected officials should receive the same COLA as employees; one commissioner said, "If 2% is deemed sufficient for our employees, it should be sufficient for us." County staff noted the law requires a process for notifying elected officials and that setting salaries for elected officials triggers a 5-day window to file a grievance, followed by a 10-day hearing timeline. Frederick also outlined retiree contribution considerations and recommended continuing a 15% employer contribution rate to TCDRS (Texas County & District Retirement System), which staff said stabilizes the county's actuarial rate and would allow a 1% retiree COLA while keeping the calculated required rate manageable.

No final, separate vote on elected-official salaries was recorded during the meeting; staff said the salary charts and estimates would be incorporated into the proposed budget and that a court workshop or a future vote could finalize elected-official adjustments.