In a recent special meeting of the DeSoto City Council, significant discussions centered around the city's budget for the upcoming fiscal year, particularly regarding personnel costs and adjustments to employee compensation. The meeting highlighted a proposed $5 million increase in personnel expenses, with $1.8 million attributed to the addition of 53 positions in the city’s Animal Resource Center (ARC).

City Manager discussions revealed that the budget includes a 1% cost-of-living adjustment (COLA) for employees, a reduction from the typical 2%. This adjustment reflects a broader trend of fiscal caution, as the city aims to manage its budget amid rising costs. The council is also considering a temporary suspension of the step increase for civilian employees, which typically allows for annual salary increases based on tenure and performance. Instead, a $500 stipend is proposed to acknowledge employee contributions during this challenging budget period.

Council members expressed concerns about the overall personnel budget, noting that the traditional year-over-year increases appear to be less than in previous years. This shift is attributed to the reduced COLA and the evaluation of new positions against potential reductions in contracted professional services. The council requested further analysis on how personnel costs would change without reclassifications, indicating a desire for transparency and clarity in budget planning.

Additionally, the meeting addressed a notable increase in service and professional fees, projected to rise by approximately $5 million from 2024 to 2026. Council members sought clarification on the reasons behind this jump, particularly whether it was linked to the ARC or other factors. The city manager assured the council that a detailed breakdown of these fees would be provided for further review.

As the council navigates these budgetary challenges, the discussions underscore the importance of balancing employee compensation with fiscal responsibility. The proposed changes reflect a commitment to supporting city staff while also ensuring the sustainability of city finances. The council plans to revisit these issues mid-year, potentially adjusting the budget as financial conditions evolve.