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HomeMy WebLinkAbout6/14/2000 - STAFF REPORTS (2) 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 19M at$200 per month for a Councilmember, and$1250 per month for the Mayor. Government Code section 36616 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 Cidy'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 oouncilmember compensation would Increase the current$470 per month to$681.50. The total annual increase per oouncilmember would be $2538, making total annual compensation $8178. The compensation included in the attached amended ordinance has been so adjusted by 45%. With respectto the Mayors 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 December2001,following the next Council election. Therefore, there would be no impact on the Fiscal Year 2000-01 budget a � June 7, 2000 Page 2 The annual cost of Coundlmember/Mayor 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. Flicek Thomas M. Kanarr Interim City Manager Director of Finance&Treasurer ATTACHMENT: 1. Ordinance 2. Councilmember Pay Calculation Table 5N9m CALCULATION OF COUNCILMEMBER PAY councilpay FOR EFFECTIVE DATE 1211101 Monthly Increase at Pay Effective Current 45% 1211=1 Coundimember $ 470.00 $ 211.50 $ 681.50 Mayor $ 1,520.00 $ 211.50 $ 1,731.50 or $ 684.00 $ 2,204.00 Annual Increase at Pay Effective Current 45% 121U2001 Coundlmember $ 5,640.00 $ 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 Coundimember portion only (b) Increase on total current pay 4o;kA43 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,Govemment Code section 36516 sets outthe maximum compensation rate for city coundlmembers 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 Clty Council last adjusted coundlmembers'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: 2,04,020 Compensation of ciN councilmembers. Each member of the city council shall receive a salary of sic 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 mop in office, or pro rate portion ereof or partial months in office. SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty(30) days after passage. However, pursuant to Government Code section 36516, the Increase in the coundlmembers' compensation shall not take effect until after the next council election. g 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 le Mayor REVIEWED&APPROVED: CA 60