The Richardson City Council held a budget workshop on August 5, 2025, focusing on employee compensation adjustments and funding allocations for various city services. A key proposal discussed was a merit-based salary increase of 2.5% for all city employees, effective October 1, 2025, alongside raising the minimum starting salary from $20 to $21 per hour.

City officials expressed enthusiasm about maintaining steady funding for essential services, including street and alley maintenance, facility upkeep, park maintenance, and economic development initiatives. The budget also emphasizes robust funding for equipment replacement and information technology needs.

During the meeting, the council reviewed the current compensation structure, particularly for non-sworn public safety positions, which encompass a wide range of jobs from solid waste drivers to performing arts center directors. The discussion highlighted the importance of ensuring that these positions remain competitive in the job market.

City staff proposed a more targeted approach to salary adjustments rather than a blanket 1% increase across all non-sworn positions. This strategy aims to allocate approximately $80,000 from the general fund to adjust salaries for positions ranked 5 or below after the 2.5% increase, ensuring they are more competitive without disproportionately benefiting higher-ranked positions.

To fund these adjustments, city officials plan to manage a projected savings of $1.88 million from a 7% attrition rate, which includes 26 frozen positions. This approach aims to balance the budget while addressing salary competitiveness, particularly for frontline positions in high-demand areas such as water and wastewater services.

The council also discussed the current staffing landscape, noting that while many professional positions are filled, there remains a significant vacancy rate in frontline roles, particularly in trades and technical positions. The proposed market adjustments are expected to help attract and retain talent in these critical areas.

Overall, the meeting underscored the city's commitment to enhancing employee compensation while ensuring the sustainability of its budget and services. The council will continue to refine these proposals as they move forward with the budget planning process.