The city administrator says the raise will cover an increase in insurance premiums and out of pocket cost on health insurance. Employees also saw a tax increase with the end of the social security payroll tax break.
"With the change at the federal level going back on the social security and taking out the full amount, now that was a hit on all the employees. So, they actually saw a decrease in their paychecks from last year from that change, so this was trying to help level out a bit," said Tom Short, City Administrator.
The pay raise goes into effect in February. The pay hikes will cost the city about $20,000 to $25,000 for the fiscal year.