The Bay City Council has approved a $2,000 dollar cost-of-living adjustment for city employees following intensive budget deliberations. The council tapped into the general fund, reducing it by $115,000, and asked department heads to identify areas for a 1 percent budget cut, totaling $175,000 from the general fund and $15,000 from the utility fund. Although employees cheered the raise, it merely offsets rising health plan costs. Employee contributions to health plans are up by $200 monthly for family coverage and $164.90 for individual coverage compared to last year. Councilman Ben Flores proposed a $2,250 dollar raise.