CATLETTSBURG — Catlettsburg leaders have approved a 3 percent pay raise for employees and will continue to fully pay their health insurance benefits in the coming fiscal year.
The Catlettsburg City Council voted 4-1 to give employees the 3 percent raise, after Councilman Don Wellman raised concerns about the issue. He was the lone dissenting vote against the wage increase.
Wellman said he objected because all employees received raises at least twice last year, first when the council overhauled the city’s pay scale and then when they were given an across the board cost of living raise. Wellman said with the current economic slowdown, he felt the city should be more cautious with its expenditures.
Catlettsburg’s officials project they will spend approximately $1.7 million in the fiscal year beginning July 1, roughly a $200,000 increase over the current year. Total revenues are estimated at $1.7 million as well.
Occupational license fees and insurance premium taxes are expected to be the two largest revenue sources, bringing in $580,000 each. Property tax revenues are estimated to grow to $195,000 from $188,029 based on an aggressive delinquent collection campaign, Mayor Pauline Hunt said.
The city’s net profit tax is projected to raise $70,000 while the city’s franchise fees will bring in $84,894. The sewer rates are expected to net $463,000.
Catlettsburg’s largest expenditures are salaries and health insurance benefits. Officials expect to spend $908,245 on salaries and related taxes while health care will cost the city another $263,856. The city’s health care costs increased 4 percent over the last year.
The city’s expenditures on contracted professional services is also expected to jump from $69,401 to an estimated $85,000.
Hunt said the extra cost can be attributed to the new city attorney and the hiring of an independent firm to do the city’s ad valorem taxes. She said those expenses should decline in subsequent years.
Hunt said the budget was prepared to “avoid placing any additional burdens or cutting essential services on residents.”
CARRIE STAMBAUGH can be reached at cstambaugh@dailyindependent.com or (606) 326-2653.
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