Lincoln County approves 1.5% pay increase for elected officials, cites limited investment income

Officials in Lincoln County voted to approve a 1.5% increase in compensation for elected officials, saying the raise will be partially funded by interest earned on a $7 million investment set aside to offset payroll costs.

A presenter told the meeting, "the interest off of that seven million every year would go towards the salaries and wages of the employees," and noted last year's investment earnings were used to fund raises. Staff later said Sedaris recalculated this year's return at $283,000, a figure the presenter described as barely covering last year's increases.

The discussion emphasized how cumulative increases and other costs affect the county's ability to fund raises going forward. Staff reported health insurance costs for the county at roughly $103,182, and after subtracting insurance, longevity and cost-of-living adjustments they estimated about $145,041 would remain from the projected investment income to apply toward the employee calculator.

Members also raised equity and retention concerns tied to how deputy pay is set. One participant said that under Montana law deputies are tied to the sheriff's salary and argued that using a different percentage for elected officials "isn't fair" because deputies can fall behind over time; the meeting referenced that in some nearby cities police chiefs make substantially more than county sheriffs, a dynamic officials said can drive retention problems.

Staff displayed a real-time calculator during the meeting to show how different percentage increases for elected officials and sworn staff would change total levy impacts and the uniform base salary. The presenters named Raymond James as the county's investment manager and said the portfolio is managed conservatively, with a current return of about 2%.

After discussion of possible levels (1%, 1.5%, 2% and higher), a member moved, "I'd make a motion to 1.5% raise," and a second was recorded. The facilitator called for a vote; the transcript records "All in favor" and indicates the motion carried. The transcript does not record individual vote tallies or identify the mover and seconder by name.

Members asked staff to bring Raymond James back for a more detailed review of the investment strategy and to refine the on-screen calculator for future budget work. The meeting adjourned after the action.

Next steps: staff will schedule a follow-up meeting with the county's investment advisor to explore whether the portfolio can safely produce higher returns and will refine the salary/employee calculator to make balances and levied vs. non-levied impacts clearer.