Jellico struggles to meet payroll for city workers

Financially speaking, the City of Jellico is in bad shape.
The Jellico City Council met Monday evening, and authorized Mayor Forester Baird to remove $23,000 from the city’s final CD in order to pay the city’s payroll Tuesday.
Baird proposed laying off six to seven city employees during Monday’s meeting, but the city council took no action on that proposal.
The city’s fixed costs have soared recently with a 44 percent increase in liability insurance, and a 15 percent increase in medical insurance for employees.
The city is scheduled to pay city sessions judge Don Moses Thursday, but officials said they are not sure if the city will have the money to do so.
During Monday’s meeting the council instructed Jellico’s city attorney to take action to abolish the position of the special sessions judge, who makes 75 percent of what the Jacksboro special sessions judge makes. This translates into about a $90,000 annual pay rate in Jellico for the special sessions judge, officials said.
The City of Jellico has about a $1.3 million annual budget.
Ballot initiatives that would have allowed the sale of hard liquor at Jellico bars and package stores were defeated in November. Supporters of the referendum estimated that it would have boosted the city’s annual budget by $300,000.
About 25 percent of Jellico’s budget comes from the sale of beer.
Jellico officials have seen that revenue slide about $60,000 annually since Corbin voters approved alcohol sales in 2003. London followed suit a short time later.
The Jellico City Council is scheduled to meet again Feb. 15 in regular session.