SILVERHILL, Ala. — Employees in the town of Silverhill will not be getting cost of living raises this year.

The Silverhill Town Council voted unanimously Monday not to grant a government-recommended 3.8 percent cost of living raise for 2009.

At its meeting March 2 the council passed its 2009 budget, showing a nearly $100,000 budget deficit.

With expenditures totalling $943,225 and revenues of a projected $845,817, the town has a projected budget deficit of $97,408 for the coming year.

The town’s general fund is operating with a $18,758 deficit, with expenditures of $553,375 and $534,617 in revenue, while the town’s water and gas department has a budget deficit of $78,650 with expenses of $389,850 to revenues and $311,200.

The town has a budget of $236,000 for salaries in 2009 with no budgeted pay increase.

Mayor Tim Wilson and all council members were present at Monday’s meeting.

In other business at Monday’s meeting the council tabled a measure to collect a 1 percent police tax for the Chrome Horse on Highway 104.

The council met with the owners of the Chrome Horse on Monday, who said they were never approached by anyone asking for the tax.

The owners also questioned AlaTax, the Birmingham-based company hired by the town to collect taxes within the town and police jurisdiction, including correspondence with company that stated the business was in Calhoun County.

“All we want is for the town to be fair,” said one of the owners. “We had not been collecting the tax because we weren’t told we needed to collect the tax. We’ve done everything we’ve been asked to do since we opened. We’ve certainly not intentionally deceived anyone and we’re just asking you to be fair.”

Wilson said the town asked for an opinion from the Alabama League of Municipalities and received a response that there was nothing that said the town could or could not enforce payment of back taxes.

“That’s really not an answer,” said Council member Jared Lyles. “‘We don’t know,’ is basically what that says.”

The tax was not collected from the time the business opened in June of 2008 until it was discovered in January. Business owners estimated that the tax would come to between $130 to $180 per month.

The council voted to table the matter and asked the town’s attorneys to look into the legality of whether or not the town could waive the back taxes or at least the penalties the business incurred in not paying the tax.

In other business Monday the council:

— Voted to approve Ordinance 388 “Red Flag” Identity Theft.

— Approved a proclamation declaring Monday, April 6 as World War II Veterans Honor Flight South Alabama Day.

— Voted 3-2 to deny a request for a donation from a Central Baldwin Middle School cheerleader. Council member Bert Jones and Mayor Tim Wilson voted against the measure. Lyles abstained. Council members Shirley Stephens, Steve Brooks and Rodney Criswell voted for the measure.

— Tabled a measure to approve engineering fees for a Alabama Department of Transportation grant for sidewalk construction.

— Voted to allow a bid package to be sent out for debris removal during Hurricane Season, which is required by FEMA.