The Jellico City Council met on Thursday to discuss new ways of bringing in revenue.
After Jellico didn't have enough money to pay employees earlier this week, officials said a long-term solution was needed.
Members voted Thursday evening to increase monthly residential garbage fees for their 900 customers from $12 to $15, and fire protection fees will increase $100 for residential and business properties.
The mayor says he's just happy that city employees were able to be paid.
"It was not done intentionally, and there again people went about their jobs. The police, the fire, street, sanitation, everybody came to work, everybody did their jobs and they helped the city, and our employees are the most valuable asset that we've got," said Jellico Mayor Les Stiers.
City Council also voted to designate 70 acres of land as a surplus; now the city will either sell it or auction it off.
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All 21 Jellico city employees have gone without a paycheck this week.
A large payment to their insurance company left no money in their bank account to make payroll Monday. City employees are paid weekly on Mondays.
Mayor Les Stiers said hourly employees received their checks Thursday. Salaried employees will receive their checks Monday, along with the next week's check.
It is a weight lifted off of Jellico's City Recorder's shoulders. Linda Douglas said it was stressful to have to tell employees.
"I was in tears. I went to the doctor yesterday because my nerves were so frayed," Douglas said. "I didn't get a paycheck. I'm just like the others. I live from paycheck to paycheck. I know how they feel."
Stiers called the employees in individually to let them know their checks would be delayed. It was a process the police chief, Chris Anderson, appreciated. He said he's never missed a paycheck before and he had confidence he would get paid.
"Pay me now or pay me later. I know I'll get paid," said Anderson.
The chief said all employees continued working, despite the late paychecks, to offer services to their citizens.
"Dispatchers, police officers all showed up for work. Nobody has called in, nobody has not showed up," Anderson said.
The mayor called the delay an internal error. Last week, the city paid its insurance company $16,000 before it paid the employees.
"What we should have done is held that check back and paid Blue Cross Blue Shield at a later date and taken care of our employees," he said.
The reason the city's accounts are so low stems from the lack of revenue this time of year. Property tax bills went out October 1st and they are waiting for the money to come in.
"It will not be an issue all of the time. This is a lean time of year. We expect our beer tax to come in $14,200. We'll get our sales tax which will be $18,000, so by tomorrow we'll have $58,000," Stiers said.
But the mayor said they shouldn't be cutting it so close. He said the books have been tight for months now and this could potentially happen again if they don't come up with more revenue.
"The city can't operate pay day to pay day. We need a nest egg to fall back on in tough times," he said. He called on the city council to find measures to increase revenue.
Jellico lost nearly $100,000 in alcohol taxes this year due to Kentucky cities allowing alcohol sales.
Revenue will be the hot topic discussed at a city council meeting Thursday at 6:30.