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Council Salary Increase; Lenz February 21, 2017 Council Report 2017-031 COUNCIL SALARY INCREASE Proposed Action Staff recommends adoption of the following motion: Move that Council adopt for first reading Ordinance 2017-1120 amending Section 200.01 of the Hopkins City Code revising the salaries of the Mayor and Council. This action will begin the process of raising the salaries of the Mayor and Council Members and add an automatic salary review and increase component. Overview The salaries of the Hopkins City Council have not been increased since 2015. Staff has completed a study comparing the salaries of the Hopkins City Council with the Councils of similar cities. This study shows that the median salaries received by city councils in cities with population estimates between 15,000 and 30,000 are $9,407 for mayors and $7,200 for Council Members. In Hopkins the Mayor is paid $8,000 and Council Members are paid $6,000 per year, tied with Ramsey for the fourth lowest salaries of all the cities that were surveyed. Primary Issues to Consider  What are the proposed salaries? Since the proposed salaries would not take effect until January 1, 2018. Staff recommends implementing an increase slightly above the median. The proposed salaries are $9,560 for the Mayor and $7,325 for Council Members.  Comparison of City Council salaries  How does the automatic salary review and increase component impact salaries?  When does a change in City Council salaries take effect? Supporting Documents  Mayor and Council Salary Comparisons  Ordinance 2017-1120 ___________________________ Ari Lenz Assistant City Manager Council Report 2017-031 Page 2 Analysis of Issues  Comparison of City Council salaries: Below is a comparison between the 2016 average annual salaries for mayors and council members in cities with population estimated between 15,000 and 30,000 and the current and proposed salaries of the Hopkins City Council. Full list of comparables provided in Index A. Median Current Hopkins salaries Proposed Hopkins salaries Mayors: $9,407 $8,000 $9,560 Council Members: $7,200 $6,000 $7,325  How does the automatic salary review and increase component impact salaries? On September 1 of each odd numbered year starting in 2019, staff would review and adjust salaries effective January 1 of the following year. The salaries must equal the limit for the prior year, increased by the percentage increase contained in the Compensation Limit for Local Government Employees annually published by the Minnesota Office of Management and Budget, pursuant to Minn. Stats. § 43A.17. According to the statute the salary limits are increased by the Consumer Price Index for all-urban consumers. For example, if the 2019 CPI-U increase was 1.6%, effective January 1, 2020 the 2020 salaries would be increased to $9,712.96 for the Mayor and $7,442.20 for the Council.  When does a change in City Council salaries take effect? According to Section 2.07 of the City Charter, no change to the salaries of the Council Members can take effect until after the next municipal election. The next municipal election will occur on November 7, 2017. For administrative reasons, our recommendation is for the salary increase to go into effect with the first pay period of the next year or January 1, 2018. City Charter, Section 2.07. SALARIES. Subdivision 1. The Mayor and members of the City Council shall each receive an annual salary as the Council may by ordinance establish in such amount as they deem reasonable. No change in such salaries shall take effect until after the next succeeding municipal election. The City Manager and all other employees of the City shall receive such salaries as from time to time may be fixed by the City Council. Council Report 2017-031 Page 3 Index A: Comparable Communities Salary Data Annual Organization Job Title Additional Payment Salary Chanhassen Council Member $4,800.00 $50 per meeting Lino Lakes Council Member $5,483.00 $40 Forest Lake Council Member $5,500.00 Hopkins Council Member $6,000.00 Hastings Council Member $6,000.00 Ramsey Council Member $6,000.00 Austin Council Member $6,600.00 $0 Champlin Council Member $6,610.00 Winona Council Member $6,696.00 Shoreview Council Member $6,936.00 Chaska Council Member $6,948.00 0 New Brighton Council Member $7,000.00 Rosemount Council Member $7,000.00 $35/Port Authority Meeting Elk River Council Member $7,000.00 $1800 annual for EDA Farmington Council Member $7,020.00 West St. Paul Council Member $7,150.00 Stillwater Council Member $7,200.00 Owatonna Council Member $7,200.00 Faribault Council Member $7,220.00 Prior Lake Council Member $7,440.00 $50.00 per meeting Willmar Council Member $7,500.00 $20 per hour White Bear Lake Council Member $7,500.00 Savage Council Member $7,500.00 Red Wing Council Member $7,550.40 $75.00 for Board of Equalization mtg Columbia Heights Council Member $7,800.00 0 Albert Lea Council Member $8,000.00 Northfield Council Member $8,028.00 0 Crystal Council Member $8,169.72 Robbinsdale Council Member $8,259.00 Golden Valley Council Member $8,696.00 $50/mtg, up to 3 monthly South St. Paul Council Member $8,700.00 New Hope Council Member $8,791.00 $25 per EDA meeting Brooklyn Center Council Member $9,070.00 Council Report 2017-031 Page 4 Annual Organization Job Title Additional Payment Salary Chanhassen Mayor $6,000.00 $50 per meeting Forest Lake Mayor $6,500.00 Lino Lakes Mayor $6,854.00 $40 Hopkins Mayor $8,000.00 Ramsey Mayor $8,000.00 Farmington Mayor $8,040.00 Chaska Mayor $8,208.00 0 Hastings Mayor $8,400.00 Faribault Mayor $8,480.00 New Brighton Mayor $8,600.00 West St. Paul Mayor $8,910.00 Stillwater Mayor $9,000.00 Austin Mayor $9,000.00 $0 Owatonna Mayor $9,000.00 Council Pres. = $9000.00 Rosemount Mayor $9,200.00 $35/Port Authority Meeting Shoreview Mayor $9,348.00 Winona Mayor $9,407.00 Prior Lake Mayor $9,420.00 $50.00 per meeting Champlin Mayor $9,550.00 White Bear Lake Mayor $9,600.00 Elk River Mayor $10,000.00 $1800 annual for EDA Savage Mayor $10,000.00 Robbinsdale Mayor $10,354.00 Crystal Mayor $10,619.84 Fridley Mayor $10,688.53 Northfield Mayor $10,704.00 0 Golden Valley Mayor $11,619.00 $50/mtg, up to 3 monthly Brooklyn Center Mayor $11,846.00 Albert Lea Mayor $12,000.00 Willmar Mayor $12,000.00 $20 per hour New Hope Mayor $12,037.00 $25 per EDA meeting South St. Paul Mayor $12,300.00 Columbia Heights Mayor $13,800.00 0 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2017-1120 AN ORDINANCE AMENDING SECTION 200.01 OF HOPKINS CITY CODE ESTABLISHING SALARIES OF THE MAYOR AND CITY COUNCIL FROM AND AFTER NOVEMBER 7, 2017. THE CITY COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN: SECTION 1. That Section 200.01, Subdivision 1 be amended to read as follows: 200.01. Salaries of Mayor and Council members. Subdivision 1. Mayor. The salary of the mayor is $8,000 $9,560 per year, payable bi-weekly. SECTION 2. That Section 200.01, Subdivision 2 be amended to read as follows: Subd. 2. Council Member. The salary of a council member is $6,000 $7,325 per year, payable bi-weekly. SECTION 3. Salary Review.On September 1 of odd numbered years beginning in 2019, the salaries in subsection 1 and 2 of this section must be adjusted with an effective date of the following January 1. The salaries must equal the limit for the prior year, increased by the percentage increase contained in the Compensation Limit for Local Government Employees annually published by the Minnesota Office of Management and Budget, pursuant to Minn. Stats. § 43A.17. First Reading: February 21, 2017 Second Reading: March 7, 2017 Date of Publication: March 16, 2017 Date Ordinance Takes Effect: November 8, 2017 ___________________________________ Molly Cummings. Mayor Attest: ___________________________________ Amy Domeier, City Clerk