Mills Gives Council Another Option On Salaries

Cookeville City Manager James Mills gave council members a second option Tuesday to include pay raises in the new fiscal year budget.

During a second day of budget work sessions, Mills detailed a plan for city employees that would include possible two percent merit raises and a $100 longevity increase per year. Mills said the merit raise insures those employed by the city less than five years would get something.

“We were just being overly cautious but if it’s important to you, we can include this,” Mills said.

The new plan would cost about $540,000. To pay for it, Finance Director Brenda Imel increased the projected sales tax increase for the year to 1.75 percent from 0.25 percent used during Monday’s work session. The plan also transfers money from the workers comp fund and the general liability fund.

Mills unveiled a plan Monday that would delay merit and longevity raises until the city better understands the sales tax implications of COVID-19. Mills said Monday he made the move out of an abundance of caution and repeated multiple times that he would come back to the council later to amend the budget if the situation improved. He repeated that Tuesday, but said this provides the council another option if they wish to consider it.

“I still plan to come back to you in the fall with a market adjustment that will benefit all our lowest-paid employees,” Mills said.

Mills said even if sales tax revenues do not meet the 1.75 increase, the city has enough money in the fund balance to cover the difference.

“We have a healthy fund balance,” Mills said.

Imel said the city has about 70 percent of its operating budget in the fund balance.

“We’ve done this in the case of a rainy day and unfortunately this is probably one of the worst times in our lifetime that we’re going to see,” Vice Mayor Laurin Wheaton said. “If we can do it now, keep moral up, make sure we’re taking care of people, I just don’t see why we wouldn’t.”

City council members will have the next several weeks to deliberate spending, including salaries, before approving budgets in June.