The Bedford City Council meeting on August 12, 2025, focused on the proposed implementation of a cost-of-living adjustment (COLA) for retired city employees, a significant topic given the current economic climate. Council members discussed the Texas Municipal Retirement System (TMRS) and the potential benefits of a non-retroactive COLA plan aimed at providing financial relief to retirees.

Currently, Bedford employees receive a fixed retirement benefit that does not adjust for inflation. The proposed plan would allow retirees to receive a monthly increase based on inflation, with a suggested 30% COLA option. This means if inflation rises by 10%, retirees would see a 3% increase in their benefits. The council also considered a more generous 50% option, which would cost approximately $263,000 annually.

The discussion highlighted the urgency of this decision, as the state has set a deadline of December 31 for adopting this more affordable COLA option. If the council does not act within this timeframe, they may have to pursue a more expensive alternative that could necessitate a tax rate increase, requiring voter approval.

To fund the proposed COLA, the council is exploring various financial strategies, including utilizing unspent bond proceeds and considering reductions in fire department overtime. The overall budget discussions also revealed challenges, such as a lack of revenue growth due to property value freezes, prompting the need for a slight increase in the tax rate to maintain essential city services.

In summary, the council's deliberations on the COLA plan reflect a commitment to supporting retired employees while navigating financial constraints. The next steps will involve finalizing budget allocations and ensuring compliance with the state’s deadline for the COLA implementation.