Poplar Bluff City Council members gave employees a 3 percent raise Monday and renewed the contract of city manager Mark Massingham.
Increases in sales tax revenue allow the city to correct pay imbalances that started in 2015, when previous administration gave a higher raise to a small section of employees, according to Massingham, speaking before the vote.
"I just feel like what was done during past administration wasn't fair to the other employees. We haven't been in a financial position the last couple of years to correct that and I think now we can," he said.
The raise is effective Oct. 1, and was a workshop and voting item. It is for general fund employees only, Massingham said. Municipal Utilities employees are paid under a separate budget and revenue stream.
Council member at large Ron Black said prior to the vote he was pleased the city could rectify this situation and catch up.
The raise will increase city budgets by just under $40,600.
Sales tax revenue is up 4 percent over the previous year at this time, Massingham said. The increase is 1 percent higher than budgeted and expected to generate between $45,000 and $50,000 in additional money.
While the city will still dip into reserves this fiscal year, Massingham said the amount will not be anything like the past couple of years.
"The last two years have been really difficult financially and we're finally starting to ... see the light at the end of the tunnel and crawling out of our hole," he said.
A small group of firefighters received a 5 percent raise in 2015, under former city manager Heath Kaplan. The raise was part of a union contract, and did not include fire department battalion chiefs, captains or the department chief.
All other general fund employees received a 2 percent increase in 2016.
"In the past, when one department received an increase, it was normally given to all of our employees, whether it was through a union agreement or not," Massingham explained.
Because of budget constraints, the city was unable to give raises in the past couple of years and had eliminated five to six positions in attempt to get closer to a balanced budget, he said.
The city is service-oriented and the employees are the most valuable asset, he said.
"Most of the employee groups I've talked to realize we went through a bad time and it was going to take a while to recover. They've been very patient," Massingham said. "I can't say enough how dedicated our employees are. In an emergency situation, they always go above and beyond their duty to help the citizens of Poplar Bluff."
The situation was not a reflection on firefighters or their department, Massingham said. The department does a great job, he said.
Council members also unanimously approved a one-year extension of Massingham's contract. The contract was the same as the previous three years, he said in September, when the matter was discussed by council.
The contract included Massingham's salary of $122,400 per year, but will see a $918 increase under the raise approved by council.
In other business, the council:
* Discussed a request for rezoning of multiple properties at 1030, 1034, 1038 and 1042 Butler, 810 S. 11th and a vacant lot on Butler from central area residential to apartment residential. This will be a voting item Oct. 15.
* Discussed and approved a change order for a pedestrian bridge at PP Highway in the amount of $1,900 related to pipe.
* Discussed changes to city ordinance clarifying use of utility vehicles on city streets. This will be a voting item Oct. 15.