Henderson is giving city employees their first cost of living raise (COLA) since July of 2008.

Reporter – Leigh Hester – The cost of the increase will be $42,500 at current staffing levels to close out the end of the year. Next year, the cost will be approximately $85,000. The raises this year are fully funded by $22,500 brought in by the city by fees paid by internet gaming cafes, and by an unexpected windfall from first quarter sales taxes of $20,000.

Council member Inscoe was quick to point out that this pay raise will be effective not just this year but for the years moving forward. Inscoe also pointed out that a one-cent tax hike nets, at current levels, about $75,000 in revenue. “We have just effectively raised the tax rate by one cent,” he said, while also insisting he was in favor of the 2% COLA raise to most city employees.

However, not all city employees will get the full 2% raise. Police officers who were given a 2% raise during the reorganization of the police force during budgeting earlier in the year will receive no additional raises; police officers who received less than 2% during the reorganization will receive enough to close the gap to 2%.

Council members voted to leave their own positions excluded from the pay increase.

Additionally, Council members voted to supply city employees with a $200 “Christmas” bonus, up from the $125 recommended by City Manager Ray Griffin. In order to help finance this in part, any police officer who received a raise during the reorganization will receive only the originally budgeted $100 bonus. Griffin indicated that he may be required to withdraw additional monies from the already-strained city General Fund to do so.

Council member Rainey voted against the ordinance, citing that it was irresponsible of the city to grant the additional $100 of the bonus to city employees while times were still so tight.