Odessa council restores funding for vacant positions and amends FY2025 budget

Odessa City Council on Jan. 14 unanimously approved a resolution to reallocate up to $7,036,812 to restore recurring funding for previously removed vacant positions and then approved an amendment to the FY2025 budget that adds $7,000,000 to anticipated sales tax revenue and $1,000,000 in interest income to the general fund and the water-sewer fund.

Acting City Manager Katie explained the vacancy funding proposal, saying the change "will give our departments the flexibility that they need, to hire as they see fit," and that departments had already identified priority hires earlier in the year. Council members voted without recorded opposition on both measures.

The vacancy reallocation directs that up to half of the $7,036,812 be transferred from existing departmental budgets; the remaining half will be appropriated by fund and will require departments and finance staff to identify the specific positions and cost shares. Katie told the council the earlier analysis included benefits and that some appropriations for critical positions already had been made since the start of the year.

The budget amendment incorporates an additional $7,000,000 to the city’s sales tax estimate (previously budgeted at $50,000,000) and a conservative $1,000,000 increase in interest income for both the general fund and the water-sewer fund. Katie said the sales-tax update used a conservative methodology and that the $1,000,000 interest additions were consistent with recent historical revenue levels.

Council members discussed implementation steps for departments to request specific hires from the reallocated funds. Katie said finance staff would work with departments over the next weeks to identify each requested position, its cost (including benefits), and the department’s share of the reallocation. If departments cannot absorb their share, staff will bring options back to council.

The council approved the vacancy reallocation in a motion moved by Councilman Haney and seconded by Councilman Mitchell. The budget amendment was moved by Councilman Vasquez and seconded by Councilman Thompson; both passed unanimously.

The measures restore an administrative path for departments to fill positions that had been removed during last year’s budget process and are intended to address staffing shortages identified by departments early in the fiscal year.

Looking ahead, finance staff and department heads will return to council with specific staffing requests and cost breakdowns for each position funded under the reallocation.