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City Will Reinstate Merit Raises
By Sarah Wienke, Missourian Staff Writer
12/21/2007
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An unexpected windfall of money for the city is good news for Washington city employees. Merit increases will be reinstated starting Jan. 1, 2008.

City Administrator Jim Briggs told the city council this week that an increase in sales tax revenue this quarter and two major settlements with cell phone providers "relieves pressure on the budget so we can provide merit increases."

The city had frozen its merit raises for 2008 in October due to a tight budget. At that time, supervisors also were asked to limit their employees' overtime hours.

THe 2007-08 budget did include 3 percent cost of living raises for all employees.

The city will budget $115,000 for the merit increases, which is three percent of the normal payroll. Briggs noted that the money is taken out of the general fund. Revenue sources are the franchise fees and the additional sales tax revenue. "We want to do everything we can to give employees a fair return from the city," said Mayor Dick Stratman.

Council member Carolyn Witt agreed. "This is very fair."

Briggs told The Missourian the city's sales tax revenue between October and December this year has shown a "healthier increase than in years past." The sales tax revenue earned this quarter, $868,619, is a $82,249 increase over the same period in 2006.

Briggs said to date, the city has received settlements from three providers, Verizon, US Cellular and AT & T, totaling $420,000.

The total settlement from AT & T is $360,327, he said. An ordinance to accept that settlement will go before the city council in January.

Briggs noted Sprint and Nextel may settle before the month is over.

These settlements are the result of a class-action suit filed by many Missouri cities against several cell phone companies with cell towers on the city rights of way.

Washington's share of the settlement reflects two years in back taxes and attorneys fees. The city levies a 6 percent gross receipt tax against communications companies, including LAN lines and cable companies, for use of right of way. The charge is a percentage of the company's gross revenue.

The lawsuit stems from the cities wanting to levy a tax on cell phone companies because they place their lines on the city rights of way, mostly below ground.

The city will now collect the gross receipt tax from the cell phone companies.


©Washington Missouri 2010

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