Chattanooga Council Members move forward on budget amendment regarding employee pay raises

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CHATTANOOGA, Tenn. (WDEF) – Chattanooga City Council members took action to move forward on amending the budget to exclude city employee raises.

Council members took a first vote on the amendment on Monday.

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City staff had previously said that the original budget documents that were passed were not the ones presented to city council members in that the general pay plan included pay raises for employees which was a draft document.

City officials said that around 1.5 million dollars had been set aside relating to compensation in the past, but went into reserves after a compensation plan was not finalized.

Councilman Russell Gilbert questioned why that money couldn’t be used for raises.

“You cannot use reserve dollars to pay salaries or other ongoing operations unless you can identify increased revenues in the future years that are equal to or more to sustain it,” Chattanooga City Finance Officer, Administrator Daisy Madison said.

There will be raises for people making below the federal poverty rate which goes from $12.38 to $12.60.

Councilman Gilbert was the only one to vote no on the amendment.

Council members will give a final vote next week.