HomeMy WebLinkAbout08-20-07 Agenda Item 2D, City Council Compensation
~
~HILLS
MEMORANDUM
DATE:
August 16, 2007
AGENDA ITEM 2D
TO: Honorable Mayor and City Council
Michelle Wolfe, City Administrator
FROM: Sue Iverson, Finance Director ~
SUBJECT: City Council Compensation Discussion
BACKGROUND
Members of the City Council asked that Council compensation be placed on a work session
agenda. On May 29,2007, staff provided the City Council with a report and research data. As a
result of that information, Council asked staff for further information which was provided via
email on June 14,2007.
DISCUSSION
Attached is the information previously provided to the City Council for use in further discussion.
We have not yet received the data from the League of Minnesota Cities for the 2007
compensations reports.
CITY STAFF RECOMMENDATION
City staff is seeking direction from the City Council in regard to setting the annual compensation
for January I, 2009.
~
~HlLLS
Request for Council Action
ORIGINAL
Prepared By:
Dept.:
Council Mtg. Date:
Final Action Needed By:
Schawn Johnson
Ad-mln-istration-------
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Agenda Item:
7.8.
Budgeted Amount:
Actual Amount:
Funding Source:
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City Staff is recommending a discussion regarding compensation for City Councilmembers-
l~~ppbi1f~:ij.@]:icum.ift~]:li~j[~~~I'l:5
I x I Memo/Letter:
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- -- 1------------ ---------
iOrdinance No.:
Dated May 29, 2007 from Assistant City Administrator Schawn Johnson
i Engineering Recommendation:
X iAttomey Recommendation:
X-[Oth-~;; ". " .. ..""- .". -"- - ---------
___J___
Letter Dated May 16, 2007 from City Attorney Jerry Filla
Mayor and City Councilmember Compensation Reports from the league of Minnesota Cities
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,
~
~HILLS
MEMORANDUM
DATE:
May 29, 2007
Agenda Item 7.B.
TO:
FROM:
Honorable Mayor and City Council Members
Michelle Wolfe, City Administrator
Schawn Johnson, Assistant City Administrator .5~
SUBJECT:
City Council Compensation Discussion
Backl!:round:
Members of the City Council requested that staff research the aunual compensation being offered
to elected offIcials in cities throughout the metropolitan area. Currently, Section 210.01 of the
Arden Hills City Code designates that the annual salary for the Mayor position shall be $3,600
annually and the annual compensation for each City Councilmember shall be $3,200. Per
Ordinance #337, the annual compensation for City Councilmembers was last reviewed and
changed on February 11, 2002.
For City Council review, staff has attached a nunlber of different spread sheets from the annual
League of Minnesota Cities compensation report for the 2006 calendar year. The 2007
compensation reports through the League of Minnesota Cities will be available in early August.
Report number one provides an overview of annual compensation for Mayor's in communities
with populations from 9,000 to 20,000 residents.
Report number two provides an overview of annual compensation for Councihnember's III
communities with populations from 9,000 to 20,000 residents.
Report number three provides an overview of annual compensation for Mayor's III the
Minneapolis/St. Paul metropolitan area.
Report number four provides an overview of annual compensation for City Councilmembers in
the Minneapolis/St. Paul metropolitan area.
Based upon compensation data obtained from the League of Minnesota Cities, the average
annual compensation for a Mayor in a community that has a population between 9,000 and
20,000 is $6,636 per year. The average salary for a City Councilmember using the same
demographics is $5,426 per year.
If the City Council is agreeable that there annual compensation should be increased at this time,
Minnesota Statue 415.11 states that an ordinance establishing the Council's salaries would not go
into effect until after the municipal election. Therefore, the proposed salary increase would not
go into effect until January 1, 2009. For your review, please fInd attached a letter from City
Attomey Jerry Filla clarifying the legal intent of Minnesota Statute 415.11.
City Staff Recommendation-
City staff is seeking direction from the City Council regarding annual compensation for City
Councilmembers on the following issues:
L Is the City Council interested in reviewing its annual compensation at this time;
2. If yes, is there a percentage or dollar increase that the City Council would like to
recommend for adoption.
Warren E. Peterson
Jerome P. Filla
Daniel Witt Fram
Glenn A. Bergman
John Michael Miller
Michael T. Oberle
Steven H. Bruns*
Paul W. Fahning*
Amy K. L. Schmidt
Ben I. Rust
Jared M. Goerlitz
P~ERSQ\J,
FRAM BERGMAN
Suite 800
55 East Fifth Street
St. Paul, MN 55101-1718
16511291-8955
(651)228-1753 facsimile
www.pfb-pa.com
PROFESSIONAL ASSOCIATION
(651)290-6907
ifilla(Q)ofb-oa.com
May 16, 2007
Schawn Johnson
Assistant City Administrator
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
RE: Mayor and Council Member Salaries
Schawn:
The Arden Hills City Council has the authority to establish salaries for the Mayor and
City Council Members. The salaries must be reasonable. Any ordinance which
establishes Council's salaries cannot become effective until after the next succeeding
municipal election (M.S. 415.11).
If you have any questions please contact me.
JPF/jmt
"ALSO ADMIITED IN WISCONSIN
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From:
Sent:
To:
Schawn Johnson
Thursday. June 14, 200711:58 AM
'sjharpstead@comcastnet'; David Grant; 'Holdenbj24@aoLcom'; 'Dave McClung'; 'Holmes
Frances H'; 'FranH116@aoLcom'
Michelle Wolfe
City Council Salary Information
Cc:
Subject:
Attachments:
20070614115630.pdf
20070614115630.p
df (288 KB)
Mayor Harpstead and City Councilrnembers:
As requested, please find attached a spread sheet with a percentage breakdown of salaries
for communities that are similar in size and/or proximity to the City of Arden Hills.
Also, for your review I have attached a letter from City Attorney Jerry Filla providing
his legal opinion on the indexing and salary per diems suggestions that were discussed at
the May 25th City Council meeting.
Please let me know if you have any further questions or concerns.
Thanks
-Please Note the New Phone Number-
Schawn P. Johnson
City of Arden Hills
Assistant City Administrator
651-792-7811 (Office)
651-634-5137 (Fax)
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Warren E. Peterson
Jerome P. Filla
Daniel Witt Fram
elenn A. Bergman
John Michael Miller
Michael T. Oberle
Steven H. Bruns.
Paul W. Fahning.
Amy K L Schmidt
Ben I. Rust
Jared M. Goerlitz
P~ERS(]\J.
FRAM BERGMAN
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Suite BOO
55 East Fifth Street
St. Paul, MN 55101-1718
(651) 291-8955
16511 228-1753 facsimile
www.pfb~pa.com
Direct Dial # (651)290-6915
aschinidt@pfb-pa.com
June 5, 2007
Schawn Johnson
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
Re: Indexing Council Member salaries; per diem payments to Council Members
File No.: 10450-920001
Dear SChawn,
Mr. Filla asked that I respond to the following questions:
1. Is it possible for Council Members' salaries to be indexed?
2. Is it possible for Council Members to be paid a per diem rather than a salary?
Discussion
1. Indexing Council Members' salaries.
As I understand the issue, the Council is wondering whether they have the authority to set
salaries by ordinance, with the ordinance providing for an annual increase allowing for cost-
of-living increases, inflation or the like. I conclude that the Council does not have such
authority.
Minnesota Statues ~ 415.11 requires that council member pay be established by ordinance
"in such amount as they deem reasonable." Minn.Stat. ~ 415.11, subd. 1. The statute
further provides that "(n]o change in salary shall take effect until after the next succeeding
municipal election." Minn.Stat. ~ 415.11, subd. 2. This statute is commonly understood
to mean that a separate, new ordinance must be passed each time a council chooses to
adjust its salary.
The apparent purpose of the requirement that the change not take effect until after the next
municipal election is to ensure transparency and to protect against conflicts of interest by
sitting council members. In other words, if an ordinance setting salaries is passed, it is
made a public record and voters may take that into consideration when making their voting
decisions. If a voter believes that a council member is abUSing his/her office by raising
his/her own salary, then the voter may cast his/her vote accordingly.
4AI.SO AOMIITED IN WlSCON5lN
.
The question also raises the issue of a council binding a future council by its actions. It is
generally accepted that, except in certain situations, a council may not take action to draft
or enact a policy that will unduly bind the actions of a future council. See, A.G. Op. 217-
B-7 (July 13, 1945) (attached). Since the statute requires a council to set salaries "in
such amount as they deem reasonable," each council should be allowed to exercise its
individual assessment of what is reasonable. If an ordinance allows for an automatic
increase, a subsequent council is stripped of its authority to assess for itself the reasonable
value of the work they provide while in office.
2. Per diem pay.
There are no statutes that specify how Council Members may be paid. Some cities pay an
annual or monthly amount, while others pay on a per-meeting basis. This type of per-
meeting policy is different than per diem pay.
Among statutory cities, only Iron Range cities have statutory authority to make per diem
payments up to $25 per day, not to exceed $250 per year, for absences from the city while
on official city business. Minn.Stat. ~ 415.10. If a non-Iron Range city wants to pay
council members a per diem for expenses incurred while away from the city on city
business, the council should first consider that there are strict IRS guidelines about per
diem pay and carefully weigh how to handle implementing a policy providing for per diem
pay.
Here, I believe the question is more about how to compensate council members for their
seNice in office. There is no authority prohibiting the council from passing a salary
ordinance which provides that council members will be paid for each meeting that they
attend. However, this can be problematic. For example, if the ordinance establishes
payment for meetings attended, unless the ordinance includes a specific definition of
"meeting," issues could arise about compensation for attendance special or emergency
meetings, meetings of other city bodies, meetings out in the community, etc.
In short, the Council has discretion in making a decision about how much and by what
method they are to be compensated for their seNice in office. However, the Council's
decision must be reflected in the form of an ordinance, and, like enacting a change in
amount of pay, the salary adjustment ordinance cannot become effective until after the next
succeeding municipal election.
If you have any further questions on these issues, or would like to discuss them further,
please feel free to let me or Jerry know.
.
Very truly yours,
vh1M;}:'lO ~
Amy K.L:. Schmidt
AKLS/as
Enclosure
cc: Michelle Wolfe