Towns find money for employee raises

BY THE NUMBERS* East Ridge -- $13.9 million budget / $94,000 in raises* Red Bank -- $5.1 million budget / $58,000 in raises* Signal Mountain -- $6.1 million budget / $38,500 in raisesNote: East Ridge and Signal Mountain budgets have only passed first reading.

As the Chattanooga City Council enters its third month of budget uncertainty, government workers in three smaller Hamilton County municipalities know they can look forward to thicker wallets.

The Red Bank Board of Commissioners and Signal Mountain Town Council recently approved across-the-board employee raises, and both governing boards unanimously voted for a boost after virtually no debate on the issue.

In Red Bank, officials termed their raises as "cost of living increases" that will pay about 60 employees a cumulative total of $58,000. Red Bank Mayor Joe Glasscock reluctantly voted for the budget, but he wasn't sure about future increases.

"That kind of spending will put us in some tax increase trouble," Mr. Glasscock said at the time.

Red Bank also used $172,724 from its emergency fund to balance a $5.1 million budget.

Hours before passing its budget on first reading, Signal Mountain officials distributed a list of "changes to 2010-2011 budget since preliminary meeting." Last among 13 other amendments was the effect of employee raises, which benefit the town's 80 workers.

The last-minute addition will cost taxpayers $38,500 out of a $6.1 million budget.

East Ridge government workers are teetering on the brink of a raise as council members will choose between a one-time cash bonus or a 2 percent raise within the month.

Councilmembers balked at the 2 percent raise possibility, knowing the city will retrieve over $200,000 from its $3.9 million emergency fund to balance the upcoming fiscal year's budget.

East Ridge City Manager William Whitson said the council probably will approve the cash option bonus, which would reward full-time employees $725 and part-time workers $250.

The proposed cash bonus accumulates to nearly $94,000 out of a $13.9 million budget.

"How many years do you go before you lose good talent?" Mr. Whitson asked. "You always have to balance between good pay and being overly generous, obviously. It's difficult."

Teachers in Hamilton County haven't received a raise since 2008, according to Sharon Vandagriff, president of the Hamilton County Education Association.

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