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Attachment D Business Items (Action Items) a. Consider Policy on Annual Staff Cost of Living Adjustments Mayor Roe noted that staff was presenting proposed policy language far City Council consideration based on the City Council's direction, specifically as detailed in lines 7- 10 of the RCA dated October 21, 2013. Mayor Roe clarified that this was not intended as a hard and fast rule that is considered automatic, but to be used during budget discussions, and still at the discretion of the City Council with flexibility built in. If the Council preferred to have a more formal policy, Mayor Roe suggested that it be done in ordinance format. Councilmember Willmus spoke in support of an annual look back to determine future budget cycles; however, he admitted that he struggled with the tool, and whether the CPI or BLS Employment Cost index was the best tool, an answer he didn't yet have. Councilmember Willmus stated that he would like to do further research and was not ready to say if this is the policy needed to move forward. Councilmember Laliberte suggested annual reviews of more than one index to be used that were measurable and solid enough to rely on across the state and what could be done. Councilmember Willmus opined that it may also be important to address timing in the budget calendar, further roping that this seems to come before the City Council on a recurring basis; and the policy maybe should spell out a timeframe that could still accommodate setting a preliminary not-to-exceed levy and annual number. Councilmember Willmus noted that he was not sure when access was available for first half figures. Mr. Miller responded that they were often not available until September 30�'� of a given year. Councilmember McGehee questioned if it would be acceptable for the policy to reference 2 indices: the Employment Cost Index for State and Municipal Employees as well as the CPI. Finance Director Miller clarified that those two indices were two entirely different measures used for two distinct purposes, and not intended to determine wages. Historically, Mr. Miller advised that the CPI, based on his observations, had remained a much closer approximation to other cities that with which the City competed for employee pools; but also noted that he was unaware of another City that used an employment cost index. Mr. Miller admitted that there may be some out there who do so, but he was not aware of use of the index which was intended for measuring something other than salaries. Mayor Roe opined that, if the broader overall Employment Cost Index was considered, based on his review of it over the last 10-11 years, it consistently tracked almost identically with the CPI. Councilmember Willmus opined that it will also be broken into different components; and concurred with Mayor Roe that they track fairly close; however, he further opined that it should