Bandera council adopts limited employee compensation adjustment policy; administrator authorized to grant small, performance‑based raises

The City of Bandera City Council unanimously approved a policy that gives the city administrator limited authority to approve small, performance‑based pay adjustments for non‑salaried employees.

Under the adopted policy, the administrator may approve compensation adjustments up to 2% for non‑salaried employees and may grant such an adjustment to a maximum of four employees per fiscal year. Eligibility requirements include at least one year of employment and meeting a minimum score on the employee’s regular merit evaluation. The policy limits an employee to one adjustment under this provision per fiscal year; the council added an amendment prohibiting granting the adjustment two years in a row.

City staff presented budget detail showing a surplus of approximately $4,125 remaining from funds budgeted for a 3% merit pool; staff provided an example where two eligible employees' eight‑month raises would total about $1,200 (roughly $0.36 per hour in that example). Council members emphasized the administrator cannot award increases that exceed available budgeted funds and that future application of the policy would be subject to annual budget availability.

The council discussed the policy’s purpose as an employee retention and performance recognition tool and agreed the council would review the policy annually and retains the right to amend or rescind it. The motion to approve the resolution with the amendment limiting consecutive‑year eligibility was seconded by Councilmember Jeff and passed unanimously.