Minimum wage pay will soon jump from $5.15 an hour to $5.85. This may sound like just a few pennies, but it will actually have a major impact on the city of Dothan's budget.
Right now, the city's Leisure Services Department is most affected with nearly 200 part-time and seasonal workers. And, increasing their minimum wage pay will end up costing the city hundreds of thousands of dollars in additional wages.
So far, the minimum wage increase has already been approved for 29 of the Leisure Services Department's part time positions.
It’s a move that will end up costing more than $95,000 dollars.
Dothan Leisure Services Director, Ann Rumble says, "It will be a little bit of a strain on our budget. But the city commission's always been mighty good to us and we'll have to find the money and go from there."
However, that's not all. The next item to address will be raising the wages of the 159 seasonal workers as well, which is expected to be approved by the city commission next Tuesday.
But minimum wage workers won't be the only ones affected by this. Other workers in the city will also get a pay increase in order to keep the same wage increments in the city.
Right now, the city has not allotted the money needed in it's current budget and will have to find additional funding until the new fiscal year begins in October.
Rumble also says, "We're coming to the end of our seasonal year, anyway. So it won't hurt us too very bad this year. And it will affect us mostly for next year."
The increase altogether will cost the city an additional $189,000 dollars in next year's budget.
And, because minimum wage increases over a course of three years, this will be an issue the city will have to face the next few summers.
The city is hoping to have all pay increases approved by the time the federal minimum wage goes into effect on July 24th.