The manager of the Indian Hills General Improvement District received a $12,000 raise Wednesday, but will forego any raise when his annual review comes up in November.
District Manager Jim Taylor has served the district for seven months.
When he was hired for $72,000 a year, he said negotiations included a $5,000 pay increase after six months.
He pointed out that the district is not paying for his health insurance benefits, which he said saves the district nearly $12,000 a year.
Board member Denise Pierini said she felt $1,000 a month was substantial.
"Mr. Taylor, I've developed a high respect for you, but what would you do in my shoes?" she asked. "The residents are going to think we're going crazy."
But newly appointed board member Ronny Lynch said he felt Taylor was worth the money.
"I can understand where you're coming from," he told Pierini. "You and I are foot soldiers. We don't have to make the hard decisions. Our history with managers hasn't been very good. If I were Jim I'd be questioning why I was doing it."
The board approved Taylor's pay increase 4-1, with Pierini voting no.
Under the agreement, Taylor said he would not seek a pay raise until his second anniversary in November 2010.