During a recent government meeting, city officials discussed the proposed compensation plan for employees, focusing on a recommended 3% cost of living adjustment (COLA) for the upcoming budget year. This recommendation is based on the latest Employment Cost Index (ECI) data, which measures changes in total compensation, including salaries, wages, and benefits.

The ECI report, released at the end of July, indicated a national increase in compensation, contrasting with a decrease in the Texas region. The city’s compensation plan aims to align with benchmark cities, which have adopted various salary adjustments over the years. Officials noted that while the proposed 3% adjustment is conservative, it is intended to keep pace with the marketplace and ensure fair compensation for city employees.

Council members expressed concerns about the overall budget impact, particularly regarding a potential combined increase of 5.5% when factoring in both the COLA and a 2.5% merit increase for eligible employees. The discussion highlighted the need for a balanced approach that considers both employee compensation and taxpayer responsibilities. Some council members suggested a more flexible budgeting strategy, allowing the city manager to allocate funds based on performance and market conditions rather than adhering strictly to predetermined percentages.

The conversation also touched on the challenges of comparing the city’s compensation structure with benchmark cities, particularly those with different commercial tax bases. Officials acknowledged the importance of conducting a compensation study to reassess benchmarks and ensure competitive salaries while remaining fiscally responsible.

As the meeting concluded, council members emphasized the need for ongoing dialogue about compensation strategies, balancing employee needs with the financial realities faced by the city and its residents. The proposed budget, which includes the 3% COLA, will be further evaluated in upcoming workshops.