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Council approves pay-classification plan but removes two positions pending funding review

Loudon City Council · May 26, 2026
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Summary

Loudon City Council voted to approve an amended pay-classification plan on May 26, striking two sections that covered an assistant-manager funding item and a director adjustment. Council debate focused on timing, recurring cost and whether utilities could cover part of the new positions.

The city’s pay-classification plan — which included proposed new positions and reclassifications — was the subject of extended debate May 26 as councilors weighed the recurring cost amid a wider budget shortfall. After discussion, the council approved the pay-classification plan but voted to strike sections seven and eight, removing two items the manager and some council members described as recurring costs that should be reviewed further before being added to the permanent payroll.

City Manager Kevin Goen and Finance Director Melissa Huskin explained that the plan as presented would add personnel and recurring budget pressure. One councilor argued the assistant-manager funding and related director adjustment "go together" and that removing one without the other would be unfair; others said they preferred to postpone recurring additions until the revenue picture is clearer.

The motion to approve the plan as amended — removing sections seven and eight — passed by voice vote with a 4–1 tally. Council instructions accompanying the vote directed staff to renumber and return a clean pay‑classification document reflecting the council’s amendments.

Why it matters: the pay-classification plan affects recurring personnel costs; council removed the contested items to avoid committing to permanent recurring expenditures until the budget workshop clarifies funding sources. Several councilors said they still view the positions as necessary but asked for clearer funding paths, including a possible contribution from utilities.

Next step: staff will return a revised pay-classification plan that excludes sections seven and eight and will provide cost and funding analysis for council review.