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Memo- City Council CompensationMemorandum To: Hopkins City Council From: Steve Mielke Date: August 27, 1998 Subject: City. Council Compensation Community Services Department Analysis of Issues What is the proposed action? The current proposal before the City Council is to increase the Mayor's salary to $6,000 per year and the Council Members' salaries to $4,600 per year. The last time the Council's wages were increased was 1989. 1997 average annual salaries for mayors and council members in cities with populations between 10,000 and 20,000 Average Current Hopkins salaries Proposed Hopkins salaries Mayors: $5,414 $5,200 $6,000 Council Members: $4,346 $4,000 $4,600 Any salary increase would not take effect until November 1999. Can the current City Council adopt an ordinance that would raise Council salaries in future years, beyond 1999? Attached is a memorandum from the City Attorney that advises against this idea. Should there also be an additional payment for extra meetings? The City Council requested that staff investigate the establishment of per diem or per meeting payments for the City Council when Council Members are required to attend special meetings or take time off from work to attend city functions. Per diem payment are allowed under Minnesota Statute 415.11. The City Council must pass an ordinance to establish such payments. Such an ordinance would not go into effect until after the next municipal election. \Council salary memo 2.doc Anoka $25 /meeting Provided for each special meeting held in addition to regular council meetings.' Brooklyn Park $50 /day Payment made when Council Members are required to attend special functions or take time away from work to perform services beneficial to the city. Crystal $35 /meeting Provided for each meeting over and above regular or special Council meetings. Allowance will not be paid for the first 4 special meetings in any month. Allowance limited to $70 month. Eden Prairie $25- $50 /meeting Compensation for all meetings outside of regularly scheduled City Council meetings. $25 for meetings up to 2 hours; $50 for meetings longer than 2 hours.' Golden Valley $50 /meeting $50 for extra authorized meetings up to a maximum of $150 per month. Lino Lake $40 /meeting Provided for meetings over and above regular meetings. Compensation is limited to two special meetings per month. The following are some cities that provide per diem payments: CITY PER DIEM NOTES Each city that has a provision for extra compensation handles it differently. The amount and method of payment varies as do the type of meetings that are covered. If the City Council wishes to adopt a per diem payment it should instruct staff to amend Ordinance 98 -811. Given automatically to all City Council Members who attend specially called Council meetings. 2 Council Members must submit reimbursement request to Finance Department. a Counc sanctioned County. State, Metropolitan and National Committees; Council sanctioned Joint Powers Committees; and special meetings which the Council directs or designates Council Members to attend as the Council representative. Council Members submit reimbursement requests to the Mayor. \Council salary memo 2.doc city ofxapkins 1010 First Street South 2fopkins, 'M (55343 -7573 • None: 612 -935 -8474 • Fav 612 -935 -1834 Date: August 25, 1998 To: James Genellie From: Jerre Miller Re: City Council Salary Increases MEMO Salaries set by the City Council for Council Members is guided by M. S.415.11 which states that they may be fixed by ordinance "in such amount as they deem reasonable." Salary changes take effect after the next succeeding municipal election following passage of the ordinance. There is nothing in the statute or accompanying Attorney General opinions that conflict with this broad discretion accorded Councils under the Statute. You have asked if the City Council legally can set salary increases beyond the one that would take effect after the next municipal election. The language of M.S.415.11 states that the governing body of a home rule city may fix their own salaries as members of such governing body in such an amount they deem reasonable. The Statute has no case law. The only published opinions are those of the Attorney General none of which center on the question you have raised. What is noteworthy, however, is the specific language of the Statute I have underlined. Whether by intent or happenstance the language suggests that the City Members of the Council may pass an ordinance affecting their compensation, that is, the Members then voting to adopt the ordinance. If it was the clear intent of the Statute to allow a governing body to bind future Council Members to salary adjustments, the language of the Statute could have been drafted on this point with more clarity. The only restriction contained in the Statute is that no salary adjustment is effective until after the next succeeding municipal election. You will note that it is the next succeeding municipal election. The Statute does not say after each succeeding municipal election or other similar language that would suggest the governing body setting salary adjustments in successive municipal elections into the future. The other observation as a practical matter is whether it is prudent municipally or politically to bind future Councils to salary adjustments set years previously. After due consideration of the lack of precedent, the language of the Statute itself and the practical effect of the question, I would caution against the passage of an ordinance that goes beyond a salary increase effective after the next municipal election particularly since I am unaware of any compelling reason to do so. c : \file\hopkins \genellie An Equal Opportunity !Employer CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 98 -811 An Ordinance establishing salaries of the Mayor and City Council from and after November 3, 1999. THE CITY COUNCIL OF THE CITY OF HOPKINS DOES 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 $5,200 $6,000 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 $1,000 $4,600 per year, payable bi- weekly. First Reading: May 19, 1998 Second Reading: Date of Publication: Date Ordinance Takes Effect: November 3, 1999 Attest: Mayor Charles Redepenning City Clerk Terry Obermaier