Kennedale looks at 2026–27 budget with 3% COLA, delayed AC M hire and trade-offs for capital projects

City staff presented a preview of the 2026–27 general-fund budget during the work session and sought council guidance on several trade-offs ahead of an August 4 public meeting.

"As you can see with administration, I'll hit on the cost of living adjustment for the staff, implementing a 3% cost of living," John Horton said, adding the preliminary estimate for that COLA is about $274,000 and was based on a payroll snapshot from earlier in the year. Horton warned figures could shift slightly as payroll data updates.

Council members pressed staff on whether the city should boost the COLA above 3%. Councilmember Ryan said a 4% increase would cost roughly $97,000 more and a 5% raise would add about $173,000 on top of the presented 3%. Horton said increasing the COLA would require either delaying projects or adding to the projected deficit: "To go to 5%, it's additional $173,000. That is an extremely steep hill to climb if we're going to do anything else that's in this capital project list."

Separately, staff removed an assistant city manager role from the proposed budget (the position was described as costing more than $200,000). Daryl, the city manager, described the role as a succession-planning need but said the timing could be adjusted: "It's a position that we need to look at as we move forward... we can push it off. We can until next year, but I would push hard for it next year." Councilors suggested postponing chamber remodeling or delaying a January versus October hire to reduce first-year costs.

The council directed staff to present alternative scenarios (including restoring the assistant city manager and higher COLA options) at the August 4 budget session and noted the council aims to consider final approval for the budget and related bond measures on Aug. 18.