During a recent city council work session, officials discussed the proposed budget for fiscal year 2025, highlighting significant challenges and priorities. City Manager Tracy Waldron described the upcoming budget as the most difficult in six years, citing competing needs, unfunded legislative mandates, and the necessity to maintain competitive compensation for city employees.

Waldron emphasized that the proposed budget will not include any new personnel positions or programs, focusing instead on delivering essential capital projects. The council aims to align budgetary decisions with community goals while ensuring fiscal responsibility. The budget process involves collaboration across departments, with preliminary property values already received from the appraisal district.

Key budget assumptions include a 3% increase in base compensation and seven employee reclassifications, which may involve changes in job descriptions rather than promotions. Council members expressed concerns about staffing levels, particularly in the engineering department, as the city embarks on its largest capital projects to date. Waldron reassured the council that current staffing levels are adequate to manage these projects, although the city will not be adding new positions this fiscal year.

The council is seeking community feedback on the proposed budget, which will be further refined in upcoming work sessions. Public hearings will be held to discuss tax rates and budget approvals in the near future, as the city navigates its financial landscape amidst growing demands and limited resources.