HOBART | The City Council in late August didn't know whether they'd have sufficient funds to allow for salary hikes in 2009 for city employees.

That's why they left the salary ordinance with enough wiggle room that by the end of the year, they could grant raises if the money was there, said City Councilman Matt Claussen, D-at-large.

On Wednesday, with new knowledge in hand, the City Council voted to grant 3 percent raises for city employees starting Jan. 1.

Claussen said he made the motion to approve 3 percent raises based on the fact that city Clerk-Treasurer Deborah Longer had received a certified budget just minutes prior to the meeting.

In addition, Longer said she also had received approval from the state on an excess levy appeal request for more than $886,000.

"Back in August, we weren't certain if we would have enough money for the raises," Claussen said.

Claussen told City Councilman Pete Mendez, D-2nd, the 3 percent raise approved doesn't include the salaries of elected officials.

The ordinance fixing the salaries of elected city officials was kept on the table by the City Council.

The deadline to approve a salary ordinance for elected city officials, including the City Council, mayor, clerk-treasurer and judge, isn't until the end of the year, Longer said.

The City Council next meets Dec. 17, its last regular meeting scheduled for the year.

Mayor Brian Snedecor offered his congratulations to city employees for receiving a raise in the new year.

"I know the employees appreciate it," he said.

In related action, the City Council also approved a new health benefit plan for city employees starting Jan. 1.

The approved plan, through the Horton Group, offers two options. It offers coverage similar to the existing plan at a $50 monthly cost for families and $25 monthly cost for individuals with an expanded group of physician care.

The second option is a health savings account, with employees paying $2 a month and the city contributing $1,200 per individual and $2,500 per family at the beginning of the year.