The City of Ironton has a new $4.9 million budget and residents will soon have a new $14 municipal fee on their water bill each month.

City council suspended the rules and gave the budget ordinance all three required readings at a special meeting Wednesday night.

The vote on the budget was 6-1 with council member Dave Frazer casting the lone vote against it. Frazer said, after the meeting, he had issues with the municipal fee, which was increased from the existing $8 assessment to a $14 charge that will be in effect until April 2013 and reduce to $11 after that.

“I told everyone I was against the municipal fee,” Frazer said.

Frazer said he would have accepted the renewal of the $8 fee but could not agree with a fee increase without more cuts to city spending.

Council Chairman Mike Lutz warned everyone that the budget will only work if every component of it was put in action. That includes employees begin paying 7.5 percent of their retirement pickup; no wage increases for any employees this year and police dispatching is handed over to the Lawrence County Sheriff’s Office by July 1.

Fellow council member Bob Cleary agreed.

“If we don’t meet the goals of this budget, it will not work and there could be departmental cutbacks,” Cleary said.

Right now the city is negotiating with its police, fire and public works unions on new contracts.

Lutz pointed out these changes reduce general fund spending by $352,000 this year. He commended Finance Director Kristen Martin for her work on the spending plan.

The 2012 budget reduces the economic development director’s salary to $15,000 from a little over $19,000. But it keeps the position, as well the assistant finance director and benefits specialist position — all jobs that some council suggested should be cut.

The budget also keeps the employees’ contribution to their health insurance at 5 percent. There had been discussions about raising the amount to 10 or even 20 percent for each employee.

City officials project that the city should end the year with a carryover of a little more than $250,000.

The city has been working on a budget since early January and had to have a new plan approved by March 31.