MORGAN CITY — The city council unanimously agreed, at the suggestion of Councilman Larry Bergeron, to amend its 2012 budget to up the city’s 2 percent longevity raise for the coming year to 3 percent.

The raise had been taken out of employees’ pay during the past year, as well as a 2 percent reduction in pay, as the city tried to come to grip with a cash strapped budget.

The 2 percent cut in pay was re-instituted in July when the city learned that it had enough funding to give it back to employees.

On Tuesday, before the council adopted its amended budget for the 2012 year to include receipt of revenues for sales taxes, expenditure of funds to pay the bond off as well as the $4 million from the tax the city plans to generate for the coming year, Bergeron requested that a 1 percent increase be included for those city employees affected by the decrease in pay this year.

The 1 percent increase amounts to approximately $66,000.

The items in the amended budget will be considered for adoption during the January council meeting.

Also during Tuesday’s meeting, the council learned from city Finance Director Deborah Garber that for the month ending Nov. 30, the city had favorable variances of $787,500 in its General and Ancillary fund, and $141,000 in its Sanitation and Sewer fund. It had an unfavorable variance of $120,300 in its Utility fund.

In other action during Tuesday’s meeting, the council also unanimously passed a resolution to retain Darnall Sikes Gardes & Frederick for auditing services as well as a resolution promulgating its election results from the Nov. 19 vote.

The council also approved its amended budget for the 2011 fiscal year, which ends Saturday. The city ended the year with total revenues of about $34.89 million and total expenditures of roughly $34.71 million.

After factoring in other financing sources, the total fund balance is about $21.95 million.