City staff explains COLA methodology; council asks for alternatives to single-month CPI measure

City HR Director Sarah Manassas presented an informational review of Dublin’s cost-of-living adjustment (COLA) methodology and answered council questions about index selection and budget impacts.

Manassas said the city historically uses CPI‑W as the basis for COLA calculations, with a 1% floor and a 3.5% ceiling built into the benefits resolution; she said that while CPI‑W and CPI‑U generally track closely over time, this year showed an unusually large divergence (February figures reported at 1.7% vs. 2.5% for CPI‑U). "One percentage point of a COLA is approximately a $184,000 in salary and salary related benefits," Manassas told the council.

Council members suggested exploring alternatives, including using an average of months rather than a single month, and asked staff to return with recommendations. Staff said they will start the employee compensation process soon with a target effective date of July 1, 2027; the council signaled support for further study and for returning to closed session as needed for negotiations.