The Andalusia City Council Tuesday night approved a $13.4 million budget for the fiscal year which began this week.

Mayor Pro Tempore Terry Powell, who was presiding, said the new budget represents only a 2 percent increase over last year’s amended budget.

The budget did not include employee raises, but the council immediately took steps to put those in place. The council made a one-time, 2 percent cost-of-living adjustment from last year permanent and added it to employees’ base salary. The move is expected to add $140,000 to costs.

The council also approved longevity pay to employees who have “topped out” of the city’s classification system and who no longer receive step raises. The annual cost is $22,500.

In other business, the council:

• Approved a $5,000 contribution for the A-Town Invitational which is this weekend.

• Reappointed Beth Woodard to the City Industrial Development Board and Kim Hopkins to the Downtown Redevelopment Board.