Lincoln County approves 1.5% salary increase for elected officials; staff says investment income will not fully cover costs

Lincoln County commissioners voted to approve a 1.5% increase in compensation for county elected officials after reviewing projected investment income and payroll impacts. A staff member told the board the county invested $7 million of a $12 million local assistance/tribal payment "with the intent that the interest off of that seven million every year would go towards the salaries and wages of the employees." The motion was made, seconded and carried by voice vote; no roll-call tally was recorded in the transcript.

The decision followed staff presentation of budget calculations showing estimated investment income for the current year of $283,000 and health insurance costs of about $103,182, leaving roughly $145,041 available for employee compensation after deductions. Staff cautioned the commission that "the return on that's just 2%," and that the $283,000 "will barely cover what we did last year," because prior-year longevity and cumulative raises increased the base payroll obligations. Commissioners discussed options ranging from 1% to 2.5% increases and agreed 1.5% was a modest, sustainable step while they review investment strategy and future budget scenarios.

Why it matters: Commissioners said the raise is intended to help retention and keep salaries moving in a tight labor market without forcing a larger levy increase. Staff will return with a follow-up meeting with the countys investment advisor and an updated calculator view for the board to review before future compensation decisions.