The Lago Vista City Council meeting held on September 18, 2025, focused on employee compensation adjustments, specifically discussing the potential implementation of a cost-of-living adjustment (COLA) versus merit-based raises.

The discussion began with a council member inquiring about the rationale behind categorizing the proposed employee compensation increase as a COLA rather than a merit-based adjustment. The city manager, Mr. West, indicated that he was open to either approach but expressed a personal preference for merit-based raises. He acknowledged the importance of providing support to hourly employees, particularly in light of rising living costs due to inflation.

A proposal was made to split the proposed 5% increase, allocating half as a COLA to assist employees facing financial pressures, while the other half could be merit-based. This suggestion received support from other council members, who emphasized the need to prioritize those at the lower end of the pay scale while allowing flexibility for the city manager to make decisions based on individual employee performance.

The council ultimately agreed on the importance of balancing support for all employees with the need for merit recognition, deferring to the city manager's judgment on the final implementation of the compensation adjustments.

In conclusion, the meeting highlighted the council's commitment to addressing employee compensation thoughtfully, considering both the economic challenges faced by staff and the merit of their contributions. Further discussions and decisions on this matter are expected in future meetings.