Lincoln County approves 1.5% pay increase for elected officials; staff say investment income won’t fully cover costs

Lincoln County commissioners voted to approve a 1.5% salary increase for elected officials and a generally parallel adjustment for employees after staff presented updated investment and budget calculations.

Staff told commissioners the county had invested $7 million from a $12 million local assistance allocation so that interest would help pay salaries without increasing taxes. This year staff recalculated expected investment income at about $283,000, down from an earlier estimate of just over $300,000; after subtracting health insurance costs and longevity/COLA obligations, staff estimated roughly $145,041 would remain for employee compensation calculations.

The shortfall is largely a result of prior-year commitments that are cumulative, staff said. Commissioners and attendees noted that prior longevity and retroactive adjustments — especially for detention staff — increased obligations beyond what the investment earnings cover. A speaker identified as the sheriff described a statutory link that ties deputies’ pay to the sheriff’s salary and said that giving different percentage increases to elected officials and regular county employees can cause deputies to fall behind over time.

Commissioners and staff demonstrated a salary calculator during the meeting that lets them model different percentage scenarios in real time. Staff noted the $7 million portfolio is managed through Raymond James and currently yields about a 2% return; some members said that return was lower than expected given recent market performance but acknowledged constraints on how county funds can be invested.

The board discussed alternatives including reviewing the county’s investment approach with Raymond James to seek higher returns, and the limits and risks of mid-year budget adjustments under state statute. Several participants warned that significantly higher percentage increases would increase future budget pressure and that the investment pool alone would not cover both last year’s commitments and new raises in full.

A motion to grant a 1.5% increase for elected officials was made and seconded; the commissioners approved the motion by voice vote. The record did not include a roll-call tally. Staff said they will meet with the county’s investment manager and refine the salary/employee calculator to show balances and levy impacts more clearly going forward.

The meeting closed with staff and commissioners agreeing to bring back more detailed investment information and modeling at a future session.