Yukon’s city manager was given an almost $4,000 pay raise Tuesday by the city council, despite expectations that city employees will not receive raises in the coming year.
The council, during their regular meeting, voted unanimously to approve a new one-year contract for Jim Crosby in the amount of $142,000 per year. It is retroactive to April 1. It also includes a car allowance of $7,200 per year.
His contract for 2016 was $138,600. His car allowance did not change.
The new contract also includes sick leave, two weeks of vacation and the city will contribute 6 percent of his salary to his retirement plan. That is the same as last’s year’s contract.
There also is a termination agreement that include three months base pay should the city council decide to terminate Crosby’s employment for reasons other than good cause.
Mayor Mike McEachern said the council felt Crosby deserved the raise because of the work he had done bringing the city back financially.
“People don’t understand how good of a job he has done,” said the mayor.
In 2015, an audit found that Yukon’s finances had been mismanaged. As a result, the city was forced to eliminate 42 positions and cut sending to the quick.
At Tuesday’s city council meeting, Crosby said the city’s finances have improved dramatically. All of the city’s fund accounts are in the positive.
McEachern said Crosby was responsible for that success.
“We found ourselves in a pretty bad situation. He came back and righted the ship. We made a tremendous number of adjustments, and now all of the accounts are back in good graces,” he said.
Crosby said even the city’s rainy day fund has about $2 million available.
Crosby previously served as the city manager from 1994 to 2011. He was asked to return after former city manage Grayson Bottom resigned in December 2015.
McEachern said Crosby came in at a lower salary than the previous manager to help the city’s finances.
He is still $3,000 under what Bottom was earning, the mayor said.
“We felt that a 2 1/2 percent raise was a way of rewarding him for what he had done,” McEachern said.
While Crosby did receive a raise, city employees won’t see a boost in their pay in the coming year because the city’s finances are still very tight.
“I don’t think employees will be upset. It was just an adjustment. All of our employees are up to standard, so I don’t expect a big fire storm. It just brings Mr. Crosby back into line,” he said.
The mayor also said that most city employees understand the city’s financial situation.
Crosby said the city’s finances are on track to finish in the positive, even though sales tax returns are down about 4½ percent over last year.
Crosby said the city has been watching its expenditures and has curtailed major projects.
All purchases, he said, are scrutinized.
“We are in the plus,” he said. “We are doing quite well on our funds, but we still have some days to go.”
The current fiscal year ends June 30.
The city council will hold budget hearings on Tuesday and Wednesday to prepare for next year’s budget. The meeting on Tuesday will begin at 6 p.m. and will be held at the Yukon Police Department’s community room. Wednesday’s meeting will be held only if needed.