The City Council of Mesquite, Texas, convened on July 19, 2025, to discuss various proposals aimed at optimizing city employee benefits and addressing budgetary constraints. The meeting focused on potential changes to health plans, prescription costs, employee compensation, and the implications of these adjustments on the city’s financial health.

The session began with a discussion on the city’s health plans. Council members expressed concerns about the impact of proposed changes on employees' ability to choose their healthcare providers. A suggestion was made to maintain the current Preferred Provider Organization (PPO) plan if it ensures that employees can select their doctors, particularly for those with specific health conditions.

Next, the council reviewed a proposal to increase prescription co-pays due to rising costs. The recommended changes would see generic prescription co-pays rise from $20 to $30, preferred medications from $60 to $70, and specialty drugs from $120 to $130. This adjustment is projected to save the city approximately $370,000 annually.

The council also discussed increasing surcharges for tobacco users and spouses of employees who opt for the city’s health plan despite having access to insurance through their own employers. The tobacco surcharge would double from $40 to $80 per paycheck, while the spousal surcharge would see a similar increase. These measures aim to offset the additional costs incurred by the city due to higher health risks associated with tobacco use and the financial burden of covering spouses who have alternative insurance options.

In terms of employee compensation, the council highlighted the challenges of filling vacancies in critical positions, particularly in public works. A 3% salary increase for employees meeting performance standards was implemented, alongside adjustments for hard-to-fill roles. For the upcoming year, the council is considering various merit increase options, estimating that a 3% increase would cost around $2.2 million, while a 5% increase would amount to approximately $3.75 million.

The discussion also touched on the city’s new employee health service center, which was implemented in April. While it is too early to assess the financial impact of this initiative, it is expected to provide cost savings for employees seeking basic medical care.

Council members acknowledged the difficult decisions ahead, particularly regarding budget allocations for employee raises and benefits. The conversation underscored the balance between providing competitive salaries and managing the city’s financial resources effectively.

In conclusion, the meeting highlighted the city’s ongoing efforts to enhance employee benefits while navigating budgetary challenges. The council plans to continue evaluating these proposals and their implications for both employees and the city’s financial health in the coming months.