MINUTES

TOWN OF SHALIMAR

Budget Workshop 1

June 8, 2004

CALL TO ORDER:  Mayor Gary Combs called the first Budget Workshop of the Shalimar Town Commission to order at 5:00 p.m. in Town Hall chambers.  He led the “Pledge of Allegiance” to the Flag.

ROLL CALL FOR THE RECORD:

                   Mayor Gary Combs -- present

                   Mayor Pro-Tem Rik Larson – present

                   Commissioner Ursel Behnken – present

Commissioner Jerry McCallister – present

                   Commissioner Kevin Reeves – present

Others in attendance:  Town Manager Tom Burns , Deputy Town Clerk Tina Smith , Police Chief Charles Self and Town resident Arthur Johanson.

PURPOSE OF BUDGET WORKSHOP 1:  To review historical fiscal data.  Estimate income, expenses and tentative millage rate for the upcoming fiscal year.  Manager Burns was unavailable for the beginning of the meeting so Finance Commissioner McCallister went over some of the errors he found.  The Commission decided to start the meeting with the proposed employee raises.  Mayor Combs explained that he wanted the two lowest paid employees to get the biggest raises.  There was some discussion and he then stated that he would agree to a 5% raise for everyone across the board.  He stated that the bottom line number would remain the same and the difference between his salary increase number and Manager Burns’ proposed numbers should be put into a “bonus fund” for incentive and/or Christmas bonuses.  Commissioner Larson asked that the Commission give everyone a 6% raise.  Mayor Combs stated that he would agree with the 6% raise but he would, then, not agree to any bonuses later.  Mayor Combs also proposed raising the Town’s IRA matching fund percentage from 3% to 5%.  The major concern is when the large raises will end.  Manager Burns’ input was that the raises will either end when the town can’t fund the raises or the salaries are comparable to other towns of the same size.  Commissioner Behnken moved to use Manager Burns’ raise percentage proposals and deal with next year’s raises next year.  The motion was seconded by Commissioner Larson.  There was some discussion.  The motion did not pass as the remaining 3 Commissioners voted nay.

Commissioner Reeves moved to give the 2 Supervisors (Manager Burns and Chief Self) a 7% raise, give everyone else a 5% raise, and keep the bottom line number the same so that the difference could be put into a bonus fund.  Mayor Combs seconded the motion and it passed unanimously.  Mayor Combs then stated that he would not vote for a bonus to be given to those that received a 7% raise but the Commission decided that the bonus decisions don’t have to be made at this meeting.

There was a little discussion regarding the millage rate.  Mayor Combs explained to the Commission about the rollback rate.  Manager Burns explained that once the tentative millage rate is finalized, it can be lowered but it can’t be raised.  It was then decided that the millage rate, for now, will stay at 2.8 mils.

ANNOUNCEMENTS:

          June 8, 2004 – 6:00 – Town Commission Meeting

          June 15, 2004 – 5:00 – Budget Workshop 2

ADJOURNMENT:

Commissioner McCallister moved to adjourn the First Budget Workshop at 6:03 p.m.   It was seconded by Commissioner Larson and passed unanimously.