HomeMy WebLinkAbout2.E. City Council Compensation 4ROSEtv1o'L.INrr EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session: Tuesday, January 14, 2014
AGENDA ITEM: City Council Compensation AGENDA SECTION:
Discussion
PREPARED BY: Emmy Foster, Assistant City
Administrator AGENDA NO. ,Fo
ATTACHMENTS: City Comparison Information, LMC
Article, 2008 & 2009 Council Action on APPROVED BY:
Council Salaries uei
RECOMMENDED ACTION: Provide clarification and direction to Staff regarding City
Council Compensation.
Background
State law requires that compensation adjustments for elected officials be done prior to the election this
year and that any adjustment cannot be effective until the following year. If the Council decides to
increase compensation for January,2015,it would need to do so before elections this year.
Discussion
Previous compensation adjustments for the Mayor and Council members since 2001 are listed in the table
below:
Year Effective Mayor Annual Pay Council member Annual Pay Employer Paid Health Insurance
2011 $8528.40 $6396.30 No
2009 $8280 $6210 No
2007 $8000 $6000 No
2001 $5500 $4800 No
Comparison Cities
A recurring issue is which cities to compare Rosemount to for various studies. For employee
compensation purposes,staff has historically used similar sized cities in the metro area. For information
on a comparison from similar sized cities,see Attachments A&B and for a comparison of cities in
Dakota County,please see attachment C.
Recommendation
If the Council would like to increase council compensation for 2015, it should provide clarification and
direction to Staff.
Mayor comparisons,Cities with Populations 15,000-30,000
2 f`
m,of Organization Organization
`ert, rr� ANNUAL Cos �AL Cost
Organization r, Population` G gals Annual Wages Specie Meetings ,.H alth Provider Tor single ,..., or Family
Brooklyn Center 29,810 1 $11,500.00
!Champlin 23,934 1 $9,550.00 0 Health Partners $0.00 $0.00
!Columbia Heights 18,361 1 $13,800.00 0 Medica $6,759.48 $10,020.00
Crystal 22,014 1 $10,514.69 n/a n/a
!Farmington 18,959 1 $8,040.00
[Forest Lake 17,496 1 $6,500.00 No Health Partners
'Golden Valley 20,312 1 $11,619.00 $50/mtg, up to 3
!Ham Lake 15,324 1 $6,000.00 N/A
Hastings 22,491 1 $8,400.00 0
!Lino Lakes 20,305 1 $6,272.00 $40 None
New Brighton 22,321 1 $8,600.00 Health Partners $0.00 $0.00
!New Hope 20,718 1 $11,170.00 $25 per EDA HealthPartners $0.00 $0.00
Ramsey 23,272 1 $8,000.00
Rosemount 21,521 1 $8,528.00 $35/Port
Savage 27,567 1 $8,000.00
!Shoreview 25,882 1 $9,060.00
!South St. Paul 20,180 1 $10,200.00
!Stillwater 18,235 1 $9,000.00 Blue Cross Blue $658.50 $1,731.50
West St. Paul 18,947 1 $8,910.00
AVG $9,140.19
<- n
v
Council member comparisons,Cities with Populations 15,000-30,000
Null),of ' ;;$ dd "Pmt for Organization Organization
le cted Special {, ANNUAL Cost AN UAL Cost
Organization Population Ct ials.._ n ual age s tings: Health Provider or Sing e for9 Family
(Brooklyn Center 29,810 4 $8,805.00
(Champlin 23,934 4 $6,610.00 0 Health Partners $0.00 $0.00
(Columbia Heights 18,361! 4 $7,800.00 0 Medica $6,759.48 $10,020.00
(Crystal 22,014 6 $8,088.83 n/a n/a
(Farmington 18,959 4 $7,020.00
(Forest Lake 17,496 4 $5,500.00 No Health Partners
(Golden Valley 20,312 4 $8,696.00 $50/mtg, up to
(Ham Lake 15,324 4 $4,900.00 N/A
(Hastings 22,491, 6 $6,000.00 0
(Lino Lakes 20,305 4 $5,018.00 $40 None
New Brighton 22,321 4 $7,000.00 NA Health Partners $6,473.52 $0.00
New Hope 20,718 4 $8,050.00 $25 per EDA Health Partners $0.00 $0.00
(Ramsey 23,272 6 $6,000.00
'Rosemount 21,521 4 $6,396.00 $35/Port
(Savage 27,567 4 $6,000.00 0
Shoreview 25,882! 4 $6,720.00
South St. Paul 20,180 6 $6,600.00
(Stillwater 18,235 4 $7,200.00 Blue Cross Blue $658.50 $1,731.50
West St. Paul 18,947 6 $7,150.00
AVG $6,818.62
i
Dakota County City Comparison
„ ,�. . .., .
s - Mayor Council Member Offered I4eaith Insurance
Apple Valley $ 11,220.00 $ 8,208.00 Yes - City offers same contributions as full-time employees
Burnsville $ 12,000.00 $ 8,400.00 Yes -City provided same contribution as employees who work 20 hrs/wk ($355/mo) *
Eagan $ 13,625.00 $ 10,000.00 Yes - City pays for single premium, councilmembers can buy up for family insurance
Farmington $ 8,040.00 $ 7,020.00 No
Hastings $ 8,400.00 $ 6,000.00 No -
Inver Grove Heights $ 9,000.00 $ 7,000.00 No
Lakeville $ 9,996.00 $ 8,664.00 No
Mendota Heights $ 5,700.00 $ 4,200.00 No
Rosemount $ 8,528.40 $ 6,396.30 No
South St. Paul $ 10,200.00 $ 6,600.00 No
West St. Paul $ 8,910.00 $ 7,150.00 No
Minimum $ 5,700.00 $ 4,200.00
Maximum; $ 13,625.00 $ , 10,000.00
Average $ 9,601.76 $ 7,239.85
*Burnsville: In 2014, rather than tracking CC hours,they increased the
contribution level to equal what employees who work 30 hours/week receive,
value is $600/month for 2014.
cJ
D I D Y O U KNOW ?
A Few Guidelines for Council Salaries
1
By Edward Cadman
ii.hink your councilmembers are paid before the next succeeding municipal considered part of their salary and
too much—or too little?Well,as election.If no effective dates are provided, should be addressed in a city's salary
long as your councilmembers agree, the salary reduction ordinance will be in ordinance or compensation plan.
it's not hard to make an adjustment. effect for 12 months.When the ordi- Referendum on salary.There is no
Cities other than Duluth,St.Paul, nance expires,the salaries it reduced authority in statute for a city to hold a
Minneapolis,and Rochester may change automatically revert to levels in effect at referendum on council salaries.So in
council salaries simply by passing an the time the ordinance was adopted. statutory cities,council alone controls
ordinance—even if the city already has How councilmembers get paid and for how much the city pays its council-
a law,ordinance,or charter provision to what. State law doesn't dictate how members.Charter cities,however,may
the contrary.However,no increase in councilmembers get paid or for which have a provision providing for a referen-
council salaries can take effect until services.Some cities pay their council- dum on ordinances.If the charter gives
after the next city election. members a fixed monthly or annual residents the ability to require an
State law. Minnesota Statutes,section sum,and others pay a certain amount election on a salary ordinance passed by
415.11 is the only law describing how per meeting.Some pay one rate for council,the Minnesota Court ofAppeals
statutory cities change salaries.Accord- meetings,whether it's a regular or says nothing in state law diminishes that
ing to the attorney general,though, special meeting,while others pay a right of the people.See Gould v. City of
charter cities have discretion to use different rate for any special meetings Bloomington,394 N.W.2d 149 (Minn.
either a charter provision or this statute beyond the planned regular meetings. App. 1986).
to change council salaries. Whatever the city decides to do should A councilmember's other job. Many
An ordinance passed and published be explicitly described by the salary councilmembers not only serve the
under the statute that raises council ordinance to eliminate any uncertainty public,but employers as well.Employ-
salaries cannot take effect until some- regarding what and when a council- ers are required by statutory section
time after the"next succeeding munici- member gets paid. 211B.10,subdivision 2 to allow
pal election."If the city has an election One provision in statute to keep in councilmembers to take time off from
this coming November and the council mind is section 43A.17,subdivision 10, their regular employment to attend
wants to amend its salaries,it may be a which states that no city's compensation council meetings.The time off may be
good idea for the city to get started now plan for elected officials may include a paid,unpaid,or made up with hours
Can council salaries be increased now? provision for vacation or sick leave.At agreed to by the employee and employer.
Any salary ordinance passed under the the same time,the statute says the elected The employer is prohibited from taking
statute should clarify when after the official's salary cannot be diminished due retaliatory action against an employee
next succeeding municipal election to absence from official duties because because of absences taken to attend
the changes will take effect.It's most of vacation or sickness. council meetings.
common that salary ordinances take Definition of"salary."No state law Council can set its salary to any
effect on the first Monday in January specifies what is or is not considered reasonable amount,but perhaps the best
following an election when new terms part of a councilmember's salary (unlike way to determine what's reasonable is
of office begin.But once the ordinance a city employee salary in 43A.17, by using data from the League of
is adopted,the salary changes could subdivision 9).While section 415.10, Minnesota Cities annual Salary&
take effect as soon as the day after the specifically allows Iron Range cities to Benefits Survey for Minnesota Local
city election. provide per diem payments to elected Governments.Access to this data is free
Can council salaries be reduced now? officials away on city business,arguably to participants of the survey,so it might
Prior to 2009,for cities operating under any city can provide such payments be a great time to share your informa-
the statute,neither increases nor decreases through its salary ordinance. tion as well.To learn more about the
in city council salaries could take effect Some cities furnish technological salary survey,how to participate,and
until after the next succeeding municipal upgrades (e.g.,iPad) for their elected how to access results,visit www Imc.
election.Now it is possible for those cities officials or provide for their reimburse- org/salarysurvey.
to decrease salaries,effective immediately. ment when purchased by the council-
The council may enact an ordinance members.If councilmembers will keep Edward Cadman is a research attorney with
that reduces salaries,and the ordinance these items once their council term the League of Minnesota Cities.Phone:
may take effect immediately or anytime expires,they arguably should be (651)281-1229.E-mail:ecadman@lmc.org.
SEPTEMBER-OCTOBER 2011 MINNESOTA CITIES 39
■ e
4ROSEMOUN1" cLi
SUMMARY
CITY COUNCIL
City Council Meeting: October 7, 2008
AGENDA SECTION:
AGENDA ITEM: Mayor and Council Salaries Consent
•
PREPARED BY: Emmy Foster, Assistant City AGENDA NO I.
Administrator
ATTACHMENTS: Comparison Table, Policy, and APPROVED BY:
Ordinance 01,
RECOMMENDED ACTION: Motion to approve the Mayor and City Council Salaries Policy;
and a Motion to approve the Ordinance Amending Salaries and Compensation for Mayor
and Council for the City of Rosemount.
ISSUE
State law requires that compensation adjustments for elected officials be done prior to the election this
year and that any adjustment cannot be effective until the following year. The last time the salary for the
Mayor and Council members was increased was January 1, 2007.
Staff is recommending a policy that establishes guidelines for adjustments to Council salaries. These
guidelines would indicate:
1. That the Mayor's salary and the salary of each Councilmember shall be adjusted biennially based
on the change in the cost of living over that two-year period. In every even-numbered year, either
the Consumer Price Index published by the Department of Labor (US City Average,All Urban
Consumers)or the average amount of non-union employee cost of living adjustments (whichever is
less for the two year period) shall be used for the prior two years to establish adjusted salaries for
the Mayor and Councilmembers. Comparisons are made from July of the prior two years. Such
adjusadjustments become effective on January 1 and biennially thereafter.
tments J � y
2. That Council salaries should be within 10% of the average of other similar sized cities in the metro
area (population of 15,000—30,000).
From July of 2006 to July of 2007, the Consumer Price Index published by the Department of Labor (US
City Average, All Urban Consumers) increased 5.6% and from July 2007 to July 2008 it increased 2.4% for
a combined total of 8% for the two year period.
From July of 2006 to July of 2007, the average amount of non-union employee cost of living adjustments
increased 3.5% and from July 2007 to July 2008 it increased 3% for a combined total of 6.5% for the two
year period. These numbers will be used in figuring the Mayor and Councilmember salaries for 2009 and
2010 since this percentage total is lower than the CPI percentage for the prior two years.
Information on the comparison cities is attached. Staffed looked at the Mayor and Councilmember
salaries of similar sized cities (population 15,000—30,000) in the metro area.
Currently, the Mayor's salary is $8000 per year and a review of similar sized cities in the metro area shows
that the average mayor salary is $8,446.81 per year. Our Mayor's compensation is 5.6% below the average.
i -
A 3.5% adjustment in 2009 and 3% adjustment in 2010 to the Mayor salary would bring the compensation
level up to $8280 in 2009 and to $8528.40 in 2010. This amount would be within the 10% range of the
average compensation at similar sized cities.
Currently, the Council's salary is $6000 per year and a review of similar sized cities in the metro area shows
that the average council salary is $6,444.57 per year. Rosemount's Council compensation is 7.4 % below
the average. A 3.5% adjustment in 2009 and 3% adjustment in 2010 to the Council salaries would bring
the compensation level up to $6210 in 2009 and$6396.30 in 2010. This amount would be within the 10%
range of the average compensation at similar sized cities.
BACKGROUND
History of City of Rosemount Mayor and City Councilmembers Compensation Increases:
Ordinance XXI.14 (June 6, 2006)
Effective January 1, 2007
Mayor - $8,000 annually, Council Members - $6,000 annually
Ordinance II.9 (April 4, 2000)
Effective January 1, 2001
Mayor - $5,500 annually, Council Members - $4,800 annually
Ordinance II.6 (May 4, 1989)
Mayor- $350/month
Council Members - $300/month
Per Diem: Receive $20 for attending City meetings—excluding regular and special City Council meetings.
Receive $25 for attending meetings outside the City.
SUMMARY
Staff recommends approval of the Mayor and City Council Salaries Policy; and approval of the Ordinance
Amending Salaries and Compensation for Mayor and Council for the City of Rosemount
2
Population Comparables Cities with population 15,000 -30,000
Mayor Councilmembers
Golden Valley 20,355 $ 11,619.00 $ 8,696.00 * high - not included in avg
Brooklyn Center 27,901 $ 10,947.00 $ 8,381.00
New Hope 20,904 $ 10,672.00 $ 7,553.00
Fridley 26,303 $ 10,530.56 $ 7,647.15
South St. Paul 20,024 $ 10,200.00 $ 6,600.00
Crystal 22,306 $ 9,983.00 $ 7,679.86
Champlin 23,860 $ 9,550.00 $ 6,610.00
Prior Lake 21,542 $ 9,420.00 $ 7,440.00
Columbia Hgts 18,288 $ 9,000.00 $ 7,800.00
Stillwater 17,929 $ 9,000.00 $ 7,200.00
Anoka 18,150 $ 8,810.00 $ 7,140.00
Shoreview 26,093 $ 8,712.00 $ 6,456.00
New Brighton 22,325 $ 8,600.00 $ 7,000.00
Hastings 22,001 $ 8,400.00 $ 6,000.00
Ramsey 22,059 $ 8,000.00 $ 6,000.00
Rosemount 22,632 $ 8,000.00 $ 6,000.00
Savage 25,065 $ 8,000.00 $ 6,000.00
West St. Paul 18,816 $ 8,000.00 $ 6,500.00
White Bear Lk 24,922 $ 7,680.00 $ 5,400.00
Forest Lake 17,424 $ 6,500.00 $ 5,500.00
Lino Lakes 19,736 $ 6,272.00 $ 5,018.00
Chanhassen 22,017 $ 6,000.00 $ 4,800.00
Ham Lake 15,005 $ 6,000.00 $ 4,900.00
Hopkins 17,389 $ 6,000.00 $ 4,600.00
Farmington 17,495 $ 5,040.00 $ 4,020.00 *low- not included in avg
Average $8,446.81 $6,444.57
Rosemount compared to average -5.60% -7.40%
DRAFT
CITY OF ROSEMOUNT
POLICY TITLE: MAYOR AND CITY COUNCIL SALARIES
EFFECTIVE DATE: JANUARY 1, 2009
PROPOSED BY: ADMINISTRATION
DATE APPROVED
BY COUNCIL: xxx, 2008
PURPOSE
The purpose of this policy is to establish guidelines for adjustments to the salaries of the
Mayor and City Councilmembers.
POLICY
It is the intent of the Rosemount City Council to establish a salary for the Mayor and City
Councilmembers that is at or near the average of other similar size cities in the metro
area (population 15,000 — 30,000). Therefore, the salary for the Mayor and
Councilmembers in Rosemount will be within 10% of the average salaries of similar size
cities in the metro area.
To insure that the Mayor and City Councilmember salaries stay near the average and to
provide regular adjustments to the salary and avoid one-time large increases to these
salaries, the City Council will adopt regular salary adjustments every other year in
accordance with State law. The Mayor's salary and the salary of each councilmember
shall be adjusted biennially based on the change in the cost of living over that two-year
period. In every even-numbered year, either the Consumer Price Index published by
the Department of Labor (US City Average, All Urban Consumers)or the average
amount of non-union employee cost of living adjustments (whichever is less for the two
year period) shall be used for the prior two years to establish adjusted salaries for the
Mayor and Councilmembers. Such adjustments become effective on January 1 and
biennially thereafter. If either the Mayor or Councilmember salaries exceed the average
salary of similar size cities in the metro area by 10%, a salary adjustment would not be
adopted.
SAMPLE CALCULATION OF COMPENSATION
From July of 2006 to July of 2007, the Consumer Price Index published by the
Department of Labor (US City Average, All Urban Consumers) increased 5.6% and from
July 2007 to July 2008 it increased 2.4% for a combined total of 8% for the two year
period.
From July of 2006 to July of 2007, the average amount of non-union employee cost of
living adjustments increased 3.5% and from July 2007 to July 2008 it increased 3% for a
combined total of 6.5% for the two year period. These numbers will be used in figuring
the Mayor and Councilmember salaries for 2009 and 2010 since this percentage total is
lower than the CPI percentage for the prior two years.
Beginning in January 2009, the Mayor will receive $8280 per year and Councilmembers
will be compensated at the rate of$6210 per year (a 3.5% increase). In January 2010,
the Mayor will receive $8528.40 per year and Councilmembers will be compensated at
the rate of$6396.30 per year (a 3.0% increase).
, •
CITY OF ROSEMOUNT
COUNTY OF DAKOTA
STATE OF MINNESOTA
ORDINANCE NO. X I 4
AN ORDINANCE AMENDING SALARIES AND
COMPENSATION FOR MAYOR AND COUNCIL FOR THE CITY OF
ROSEMOUNT
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAINS AS FOLLOWS:
Section 1. The Rosemount City Code 1-6-1 is hereby amended as follows:
1-6-1: SALARIES AND COMPENSATION:
A. Salaries Established: Commencing January 1, 20072009, the salaries for mayor and
council for the city shall be as follows:
Mayor $8;004 00 8280 annually
Council Members $6,000.00 6210 annually
( ... , $7)
Commencing January 1, 2010, the salaries for mayor and council for the city shall be as
follows:
Mayor $ 8528.40 annually
Council Members $ 6396.30 annually
B. Workers' Compensation Act: Pursuant to Minnesota Statutes, section 176.011,
subdivision 9, clause 5, the elected officials of the city are hereby included in coverage of the
Minnesota workers' compensation act. (Ord. 11.6, 4-18-1989; amd. Ord.11.9, 4-4-2000)
Section 2. This Ordinance shall be in effect following its passage and publication.
Adopted this day of ,20 2008, by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Amy Domeier, City Clerk
I Published in the Rosemount Town Pages this day of , 20062008.
- _c
ROSEMOCiNT Cc N
EXECUTIVE SUMMARY
CITY COUNCIL
City Council Regular Meeting: November 17, 2009
AGENDA ITEM: Ordinance reducing Council salaries for �F DA S CTION•
2010 l�j
PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. �.d.
ATTACHMENTS: Copy of state law regarding council APPROVED BY:
salaries 04)
RECOMMENDED ACTION: Motion to approve an ordinance temporarily reducing the
salaries of the Mayor and City Council members for twelve months beginning January 1,
2010.
BACKGROUND
At the last Council work session,it was noted that Council salaries are due to increase automatically by 3%
on January 1,2010 based on previous action by the Council in 2008. The current ordinance ties the
salaries of the Mayor and Council to a combination of factors including both the cost of living index and
the salaries of other elected officials in similar area cities. At the workshop meeting,staff was directed to
prepare an ordinance that would reduce the 2010 salaries for the Mayor and Council back to the current
2009 level for the 2010 calendar year.
DISCUSSION
The increases previously approved for January 1,2010 are as follows:
Current 2010 Salary
Mayor $8,280 $8,530
Council $6,211 $6,398
The Finance Director indicates that if the Council should wish to freeze its salaries for 2010,the savings in
2010 would be$998.00. Attached is a copy of the state law which was recently changed to allow a city
council to temporarily reduce its pay by ordinance.
RECOMMENDATION
If the City Council wishes to eliminate the scheduled salary increase on January 1,2010,the attached
ordinance should be approved.
CITY OF ROSEMOUNT
STATE OF MINNESOTA
ORDINANCE NO.
ORDINANCE RELATING TO THE SALARY OF THE MAYOR AND COUNCIL
MEMBERS; AMENDING CITY CODE SECTION 1-6-1.
The City Council of Rosemount ordains as follows:
Section 1. Rosemount City Code Section 1.6.1 is amended as follows:
1-6-1: SALARIES AND COMPENSATION:
A. Salaries Established: Commencing January 1, 2009, the salaries for mayor and
council for the city shall be as follows:
Mayor $8,280.00 annually
Council members 6,210.00 annually
Commencing January 1, 2010, the salaries for mayor and council for the city
shall be as follows:
Mayor $8,528.40 annually
Council members 6,396.30 annually
Temporary Salary Reduction. Pursuant to the authority of Minnesota Statutes,
Section 415.11, Subd. 3, salaries for mayor and council are reduced, effective
from January 1, 2010 through December 31, 2010, to the following:
Mayor $8,280.00 annually
Council members $6,210.00 annually
Thereafter salaries shall be as follows:
Mayor $8,528.40 annually
Council members $6,396.30 annually
B. Worker's Compensation Act: Pursuant to Minnesota statutes, section 176.011,
subdivision 9, clause 6, the elected officials of the city are hereby included in
coverage of the Minnesota workers' compensation act. (Ord. XXI.18, 10-7-2008)
Section 2. This ordinance shall be effective immediately upon its passage and
publication according to law.
Underli in indicates new language.]
I � 9
Adopted by the City Council and City of Rosemount, Minnesota the day of
p Y tY Y Y
, 2009.
William Droste
Mayor
ATTEST:
Amy DoMeier
City Clerk
Published the day of , 20 in the Rosemount Town Pages
415.11, 2009 Minnesota Statutes Page 1 of 1
2o09 Minnesota Statutes
415.11 SECOND TO FOURTH CLASS CITIES; GOVERNING BODY SALARIES.
Subdivision 1. Set by ordinance. Notwithstanding the provisions of any general or
special law, charter,or ordinance,the governing body of any statutory or home rule
charter city of the second,third or fourth class may by ordinance fix their own salaries as
members of such governing body,and the salary of the chief elected executive officer of
such City, in such amount as they deem reasonable.
Subd. 2. After next election. No change in salary shall take effect until after the
next succeeding municipal election.
Subd. 3. Temporary reductions. Notwithstanding subdivision 2 or a charter
provision to the contrary,the governing body may enact an ordinance to take effect
before the next succeeding municipal election that reduces the salaries of the members of
the governing body. The ordinance shall be in effect for 12 months, unless another period
of time is specified in the ordinance, after which the salary of the members reverts to the
salary in effect immediately before the ordinance was enacted.
1-Iistory:• Ex 1967 c 42 s 1,2; 1976 c 44 s 34; 2009 c 152 s 17
https://www.r,evisor.mn.gov/statutes/?id=415.11 11/10/2009