Tupelo council approves FY2026 amendment including proposed 3% raise for full-time staff

Tupelo City Council voted Dec. 2 to approve Budget Amendment No. 2 for fiscal year 2026, a package staff said would fund a proposed 3% cost-of-living increase for full-time employees and cover upcoming increases in health insurance costs.

Hannah, who presented the amendment, told the council the package adds roughly $1 million in the general fund to support the pay adjustment and related benefits and carries other changes across funds. She said the COLA and insurance changes are proposed to start Jan. 1. The amendment also adds an approximately $119,000 Homeland Security grant for the police department, a $32,000 capital/infrastructure increase tied to a Homeland Security grant for the fire department, a $3,000 tourism donation for promotional activities, and a $40,000 transfer from the neighborhood revitalization fund to complete a previously approved property purchase.

Councilors moved and seconded the budget amendment after Hannah reviewed highlights; the motion carried on a voice vote. No public opposition to the amendment was recorded during the meeting.

Why it matters: Council action alters planned FY2026 spending and directs recurring pay increases and benefit adjustments for city employees. The added grants and transfers change line items in police, fire, tourism and capital funds and enable a pending property purchase funded by neighborhood revitalization monies.

The council Chair closed discussion and the amendment was adopted; staff indicated the cost-of-living adjustment and insurance changes would become effective Jan. 1 as presented.