HARRISVILLE -- The city council, with one dissenting vote, has adopted a budget for the 2012-13 fiscal year.
Councilman Chad Allen voted no on the new budget because he believed the current employee benefits need to be further examined.
Harrisville reduced the city's 401(k) contributions from 3 percent to 2 percent of employee salaries for all but two employees.
Those two employees are receiving 20 percent of their salaries in 401(k) contributions.
"I just don't think that sends the right message to our employees," Allen said.
The two employees already receive retirement pensions from other cities. Harrisville legally cannot contribute to pensions on their behalf, so when they were hired they were given the 20 percent 401(k) contributions in lieu of the state pension.
"Those agreements were made by prior administrations before I was there and before the council members were there," City Manager Bill Morris said. "That's the situation. Do we renegotiate those or do we follow them?"
Councilwoman Michelle Tait spoke in favor of the budget and said if the percentage put into a 401(k) were changed, because of previous contracts with the city, the money would just go into the employee's salary, thereby making no difference with the budget.
Allen pointed out that only one of the employees has a contract with the city, and he's not sure that the other contract was ratified with the city council that was serving when the individual was hired.