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HomeMy WebLinkAbout6/7/2000 - STAFF REPORTS (17) DATE: June 7, 2000 TO: City Council FROM: Director of Finance&Treasurer INCREASE IN COUNCIUMAYOR COMPENSATION RECOMMENDATION: it Is recommended that the City Council act on the proposal to increase Councilmember's compensation from$470 to$681.50 per month,and the Mayor's compensation from$1520 to$2204 per month. There would be no change to the $30 per meeting pay for Community Redevelopment Agency meetings or the$50 per meeting pay for Housing Authority meetings. BACKGROUND: The City Council and Mayor compensation was last increased in April 1991 to the current levels. Previously, the amounts had been set in 1984 at$200 per month for a Councilmember, and$1250 per month for the Mayor. Government Code section 36516 sets forth the criteria for Councilmember pay. Since the city has a directly elected Mayor, the Mayor's compensation is set by section 36516.1 and no limits are specified. The City's charter essentially mirrors this language. Basically, the pay rate can be increased by no more than 5% per year for the number of years since the last adjustment. Since the last adjustment was in 1991, the maximum increase is 45%. A 45% increase in councilmember compensation would increase the current$470 per month to$681.50. The total annual increase per councilmember would be $2538, making total annual compensation $8178. The compensation included in the attached amended ordinance has been so adjusted by 45%. With respect to the Mayor's compensation,in 1991,the Mayor's compensation was adjusted by the same aggregate amount as the individual councilmember compensation, rather than by the percentage. If the same were done here, the Mayor's aggregate monthly compensation of$1520 would be adjusted by$211.50 to $1731.50, or $20,778 per year. If the same percentage is applied, a 45% increase would move the Mayor's compensation from$1520 to$2204 per month. We believe the Council could approve either of these amounts or something in between. The attached table summarizes the changes. If approved,the higher pay rates would be effective December 2001,following the next Council election. Therefore, there would be no impact on the Fiscal Year 200"1 budget. NA June 7, 2000 Page 2 The annual cost of CoundlmemberiMayor compensation(excluding meeting pay) after implementation would be a maximum of$59,160. The current maximum cost Is$40,800 per year. APPROVED BY SUBMITTED BY Dallas J. F116ek Thomas M. Kanarr Interim City Manager Director of Finance&Treasurer ATTACHMENT: 1. Ordinance 2. Councllmember Pay Calculation Table I YA� 5/19/00 CALCULATION OF COUNCILMEMBER PAY coundlpay FOR EFFECTIVE DATE 12/1/01 Monthly Increase at Pay Effective Current 45% 1211/2001 Coundlmember $ 470.00 $ 211.50 $ 681.50 Mayor $ 1,520.00 $ 211.50 $ 1,731.50 or $ 684.W $ 2,204.00 Annual Increase at Pay Effective Current 45% 1211MWI Coundimember $ 5,640.00 8 2,538.00 $ 8,178.00 Mayor $ 18,240.00 $ 2,538.00 (a) $ 20,778.00 or $ 8,208.00 (b) $ 26,448.00 (a) Increase on Councilmember portion only (b) Increase on total current pay Iq)43 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 2.04.020 AND 2.04.021 OF THE PALM SPRINGS MUNICIPAL CODE, INCREASING THE COMPENSATION OF THE MAYOR AND CITY COUNCILMEMBERS WHEREAS,Government Code section 36516 sets outthe maiamum compensation rate for city councilmembers based on the city's population; and WHEREAS,the City of Palm Springs has a population between 35,000 and 50,000 people; and WHEREAS,the Palm Springs City Council last adjusted councilmembers'salaries In 1991 to the amount of$470 per month. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Section 2.04.020 of the Palm Springs Municipal Code is hereby amended to read as follows: 2.04.029 Comoensation of city councilmembers Each member Of the city council shal receive a salary of six hundred eighty-one dollars and fifty cents ($681.50) per month. SECTION 2. Section 2.04.021 of the Palm Springs Municipal Code is hereby amended to read as follows: 2.04.021 Additional compensation for mayor. The mayor shall receive compensation in addition to any compensation received as a member of the city council. The additional compensation shall be in an amount which,when added to any compensation received as a member of the city council,shall total per year,payable for each fu mon in office, or pro rate portion thereo for pa a months in office. SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty(30) days after passage. However, pursuant to Govemment Code section 365 8, the increase in the councilmembers' compensation shall not take effect until after the next council election. lqb Ordinance No. Page 2 SECTION 4. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or a summary thereof or a display advertisement, duly prepared according to law, to be published In accordance with law. ADOPTED THIS DAY OF 2000. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk Va-yor REVIEWED&APPROVED: f