By Richard Kerns
rkerns@newstribune.info
tribune staff writer

LUKE — Members of the Luke Town Council met earlier this week to begin crafting the town budget for the fiscal year that begins July 1.
Town Council members Janet Bryan, James Parker and Gary Wiltison were in attendance for the 10 a.m. Monday meeting at Town Hall. Council member Thomas Clayton was unavailable to attend and Mayor James LaRue was sick.
The work session was the first step in what will likely be a months-long process to develop and approve a fiscal 2010 spending plan for the community of 80 people. At Monday’s meeting, Clerk Treasurer Ronda Wertman said revenue will be down slightly next year because of declining property values, but she said relatively minor adjustments to the budget could make up the difference.
On the revenue side, the NewPage paper mill once again represents the vast majority of the municipality’s property tax income, its $339,000 tax bill — and another $22,000 in personal property tax — accounting for 91 percent of the town’s proposed $397,000 fiscal 2010 budget.
On the expense side, salaries and benefits for the town’s five full-time employees account for the bulk of the spending. Wertman said health insurance costs, budgeted at $52,000 for the coming year, are expected to increase up to 10 percent.
As part of Monday’s budget deliberations, members of the council discussed employee raises, with Councilman Parker recommending a flat raise of 50 cents to $1 an hour, as opposed to a percentage increase.
“I think it’s more fair that way,” he said.
Wertman said the budget has about $12,000 available in salary-related expenses, due to the retirement of longtime clerk-treasurer Sherry McIntyre, whose pay was higher because of her three-plus decades with the town. Wertman said she would prepare cost figures for raises of 50 cents, 75 cents and $1 an hour, to be presented to the council members at their next meeting.
Parker and the other council members declined to make any salary-related recommendations in the absence of the other two council members, although the three present did decline any raise in the council members’ salaries, which total $18,000 divided between the five members.
“I could use the money, but I’ll wait to win the lottery instead,” Bryan said.
Beyond its operational expenses, the town of Luke has significant financial reserves, with $453,000 in cash on hand, including $180,000 in Certificates of Deposit, $169,000 in reserve and $55,000 general-fund reserves.
The next meeting of the Luke Town Council will be Wednesday, March 11 at 1 p.m.