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Midway council trims budget, OKs 3% cost-of-living raise and rejects 401(k) contribution
Summary
At a April 23 budget work session, Midway officials adjusted line items in a $2.3846 million proposed budget, approved a 3% COLA for select staff, and by consensus declined a Town-funded 401(k) contribution while leaving employee voluntary contributions in place.
Midway Town Council reviewed a revised $2,384,600 proposed budget on April 23, approving a 3% cost-of-living adjustment for Parks staff and the Town Clerk while debating whether the Town should add a supplemental 401(k) contribution.
Town Manager Brock Hall presented line-item adjustments that produced a net $11,000 decrease from the previous proposal. Changes included increases to Administration maintenance and payroll-tax expense, a new supplemental retirement line, reductions to Administration compensation and group health insurance, and modest adjustments in Public Works and Parks. The proposed total remained $2,384,600.
The council approved a 3% COLA that will cost roughly $1,697 for the Town Clerk and approximately $0.50 per hour for part-time Parks staff, with a maximum annual cost of about $6,500 if all hours are filled. Mr. Hall also proposed a 2% supplemental 401(k) contribution for eligible staff, estimated at $3,731.
Councilor Jackie Edwards opposed Town contributions to a 401(k), saying the 457 plan was originally intended only as a place for employees to ‘park’ funds from prior employment and noting the Town’s existing retirement contributions. Mayor John Byrum said he viewed a small Town contribution as an inexpensive way to show appreciation for staff, while Mayor Pro Tem Mike McAlpine and Councilor Keith Leonard opposed adding the 401(k) contribution. The council reached consensus against implementing Town-funded 401(k) contributions; employees may still contribute voluntarily.
Council asked staff to investigate an unusually high Planning and Zoning contract-services charge and to provide any necessary clarifications before final budget adoption. The council confirmed maintaining the current 5-cent property tax rate for the coming year.
The council did not adopt a final budget at the session; staff will return with any follow-up information requested by councilors alongside the formal budget adoption schedule.
