Town Council Approves Cost of Living Adjustments for 2023

The Town of Highland Park has adopted a 50% cost of living adjustment (COLA) and 50% updated service credit (USC) for the 2023 fiscal year.

This was approved by the Town Council during its Dec. 6 meeting. It’s the first COLA change since the 2007-2008 fiscal year.

A COLA is an increase in pay or benefits based on the rising cost of living in the respective area. An USC updates Texas Municipal Retirement System (TMRS) benefits to take into account changes in a city’s TMRS plan.

“What that means is [the town] will take a look at the change in inflation since [before they] retired and calculate what that increase in inflation based on consumer price index and provide an adjustment to equate 50% of that change to the retirees,” said Steven J. Alexander, Highland Park CFO and director of administrative services.

The 2023 fiscal year budget originally included the provision of an ad hoc COLA at 50% and USC at 75%. However, now that the 50% for both categories has been approved, the town’s cost will be reduced by approximately $73,500 per year.

“Moving the USC to 50% places the greatest emphasis on the COLA for retirees and minimizes the USC that is requited by TMRS when a COLA is approved,” the agenda item reads. “As such, the cost of implementing the proposed ordinance is well within the amounts approved in the FY 2023 adopted budget.”

The COLA will affect 126 people at an average of $342.23 per month and the USC will impact 36 people at an average of $69 per month.

In other news, during its Dec. 6 study session, the Town Council:

• Reviewed, discussed, and approved a proposal for municipal swimming pool improvements.
• Reviewed and discussed proposals submitted for chemical application services for town parks and greenspaces.
• Reviewed, discussed, and approved the continuation of an interlocal agreement with Highland Park ISD to provide funding for law enforcement officers at Armstrong Elementary School and Bradfield Elementary School.
• Reviewed, discussed, and considered approval of a master interlocal agreement with Dallas County Road and Bridge to qualify for funding for improvements and/or maintenance on designated roadways.
• Reviewed the 2023 Town Council meeting schedule.