The Haines Borough Assembly unanimously approved a $17.8 million budget Tuesday, including funding $95,000 for a local economic development corporation, hiring a fifth police officer and covering increased costs of staff health insurance.

Due to rising costs in borough employee health insurance, the assembly increased the borough’s contribution for employees on the borough’s “blue family plan.” On Tuesday, the assembly increased its contribution from about $14,000 to $20,292.

Assembly member Tom Morphet called an earlier increase approved by the assembly a “token gesture.” He made an amendment to cover more of the affected employees share.

“(That) it unfairly or unevenly hit the people subscribed to just the one plan kind of rankled me,” Morphet said. The assembly agreed unanimously to increase the share.

A new police officer will cost the borough around $97,000, including benefits and equipment.

Morphet made an amendment to hold the amount of police overtime and standby hours to last year’s levels. The budget for the coming year includes a 50 percent increase in officer overtime hours (100 to 150 hours) and standby hours (265 to 500 hours).

Assembly member Heather Lende disagreed.

“If overtime is needed, it will be used. If it isn’t, then it isn’t,” Lende said. “I think we need to honor the (police) chief’s request and the manager’s (recommendation) and go ahead and give it a try.”

Assembly member Tresham Gregg agreed with Morphet, but Morphet’s amendment failed, with Lende, Stephanie Scott and Ron Jackson opposed.

The $95,000 budget for the Haines Economic Development Corporation will likely go toward hiring an executive director. The assembly must still approve the corporation’s business plan.

The assembly also budgeted an additional $5,500 to pay for the special recall election scheduled for Aug. 15.

Other amendments include an additional $17,000 to open the pool for a swim each Sunday afternoon, November through April.

The assembly also approved amendments including $32,000 to fund non-profits, a $10,000 increase to the library budget and $5,000 for the scrap metal recycling program.

The assembly cut $22,500 in lobbying services. It also slashed the mayor’s salary in half (by $7,799) to align more closely with other Southeast towns with a manager form of government. The reduced pay goes into effect following October’s mayoral election.

Borough manager Debra Schnabel’s contract, which was also approved during the meeting, came in $18,000 less than what was budgeted in April. Her annual salary is $93,600, not including benefits.

Schnabel offered to decline medical benefits but the borough’s collective bargaining agreement disallows that. Total manager costs, including health insurance and other associated costs, comes to $138,000.

The deficit in the budget amounts to about $490,000, which will be covered by savings from borough fund balances, including from the general fund and townsite general fund.

The budget includes a small property tax increase estimated to raise about $18,000.