In a recent closed executive session, the City Council of Lampasas, Texas, convened to discuss personnel matters, including the evaluation and potential reassignment of the city manager. Following this session, the council transitioned into a workshop focused on the fiscal year 2024-2025 budget, with particular emphasis on the city's tax rate and employee compensation.

During the workshop, council members reviewed the proposed tax rate, which has seen only one increase in the past 15 years. The current rate stands at approximately $0.37, with discussions indicating a need to ensure that the tax rate adequately supports essential public services and employee salaries. Council members expressed concerns about the city's ability to retain staff, particularly in entry-level and mid-level positions, as competition for skilled workers intensifies.

A significant point of discussion was the need for salary adjustments to remain competitive with neighboring cities. Council members noted that recent departures of employees, particularly in skilled positions such as linemen and water workers, were often due to better pay offered by other municipalities. The council is considering a more aggressive approach to salary adjustments, potentially increasing the budget for these adjustments from the previously proposed $75,000 to around $150,000 over the next three years.

The conversation highlighted the importance of addressing salary compression issues, where entry-level positions earn significantly less than mid-level roles, even after cost-of-living adjustments (COLA). Council members emphasized the need to raise the baseline pay for entry-level employees to prevent turnover and ensure that the city can attract and retain qualified personnel.

As the council continues to deliberate on these matters, they aim to balance competitive salaries with fiscal responsibility, ensuring that the city can maintain a high quality of life for its residents while also investing in its workforce. The discussions are ongoing, with further meetings planned to finalize budgetary decisions and salary adjustments.