HUMBOLDT — In an effort to attract more employees, Humboldt council members agreed to give an across-the-board 83-cent per hour raise for 2024. The increase raises the city’s overall payroll by about 4%, said Cole Herder, city administrator.
In addition to the one-time increase, the beginning wage for a new employee will be increased from $15 an hour to $15.30 an hour.
Council members viewed the 83-cent per hour increase as a way to boost the incomes of those on the lower tiers.
“It’s a 5.5% increase for the lowest paid and a 2.34% increase for the highest paid,” said Herder. A 2% across-the-board increase has the opposite effect, giving top-paid employees a bigger increase in pay.
After 2024, city council members said they would revisit whether to return to the 2% annual increases. Since 2008, the city has rewarded employees with 2% raises each year.
WHEN IT CAME to renewing the city’s annual tract with Thrive Allen County for its economic development services, not all council members were on board.
Council member Cindy Holinsworth said she would rather direct Humboldt’s $17,000 stipend it pays for Thrive’s economic development services, to city employees.
“We don’t have a penny to spare,” Holinsworth said. “We don’t pay a living wage now.”
Humboldt has contracted with Thrive for the services since 2020.
For 2023, Thrive secured $17,000 in grant funding to boost Humboldt Public Library and Our Market grocery, in addition to a $50,000 moderate income housing grant to construct a new house.
“One house might not feel like a lot right now, but it spurs further development,” said Lisse Regehr, president and CEO of Thrive Allen County.
Regehr also discussed Thrive’s work in securing the Lehigh Portland State Park and how that will positively impact Humboldt, and other projects in the works.
In addition to Humboldt’s $17,000 stipend, Iola budgets $50,000 for Thrive; Allen County, $25,000; and Iola Industries, $20,000.
“That $112,000 investment in economic development has yielded about a $5 million return on investment for Allen County for 2023,” Regehr said.
Administrator Herder recommended the council renew its contract.