Full-time City of Holton employees to get 6% pay raise
Full-time City of Holton employees have been granted a six-percent pay raise for 2023, but members of the Holton City Commission voiced concern that allowing annual pay raises to keep up with the cost of living may pose problems for city officials in the future.
During the city commission’s meeting last night — held a day later than usual due to observance of the New Year’s Day holiday on Monday — commissioners approved a resolution raising the base pay schedule for full-time city employees by six percent, or $1.45 per hour, as well as pay raises for part-time and salaried city employees in certain positions.
Commissioners unanimously approved the six-percent pay raise as part of the city’s updated salary and wage schedule, but expressed concerns that granting continued pay raises at that rate to keep up with burgeoning inflation rates would force future configurations of the commission to raise property taxes or utility rates to allow the city to keep a strong base of employees.
“I’m proud that we’ve held where we’re at, and I want to hold a whole lot longer,” Commissioner Tim Morris said. “I see no reason to raise the rates, and I see no reason to raise the property tax, but it’ll probably be brought before us. Let’s just be careful and think about where we’re headed.”
In budget discussions held last summer, commissioners were able to budget for up to a seven-percent cost-of-living increase in the city’s salary and wage schedule, Holton City Manager Kerwin McKee reminded commissioners last night. Commissioners were then presented with options of COLA (cost of living allowance) raises of four percent and six percent.
The six-percent COLA raise, which commissioners approved unanimously, would equate to the $1.45-per-hour wage increase for permanent full-time employees and cost the city $144,814 in new money, it was noted.
Commissioners also discussed the possibility of a four-percent COLA increase, which would result in an hourly wage increase of 97 cents for full-time workers and cost the city $96,543.
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