I-3. Amendment regarding Council Compensation1
�i
Al1,
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
MEMORANDUM
TO: Mayor and City Council
FROM: Todd Gerhardt, City Manager
DATE: December 1, 2014 or`,z
SUBJ• Review Mayor and City Council Salary Adjustment Effective January 1, 2017
Administration
I know that council compensation is not a subject the Mayor and City Council likes to
Phone 952 2271100
discuss, but in my opinion, it needs to be addressed The current pay is so small that it is not
Fax 952 2271110
even close to a regular salary The Mayor spends anywhere from 15 to 20 hours per week on
Fax 952 2271404
city business and gets paid between $5 77 and $7 70 per hour, which is below minimum
Building Inspections
wage
Phone 952 2271180
Fax 952 2271190
It is my recommendation that the Mayor's salary increase from $500 to $750 per month and
Fax 952 2271110
The Mayor and City Council should be compared to the Chairman and Board of Directors of
Engineering
a private business They are compensated for their knowledge and skills in running a
Phone 952 2271160
business In a business scenario, the Mayor and City Councils of the Key Financial Strategy
Fax 952 2271170
cities are our competition I have attached a survey of those cities who responded to our
Finance
requests for your review.
Phone 952 2271140
compensation increase and when it takes effect Therefore, any increase approved by the
Fax 952 2271110
Based on the survey, I believe the Mayor and City Council salaries should be as follows.
Park & Recreation Mayor $9,000 per year
Phone 952 2271120 Council $7,200 year
Fax 952 2271110 p er y
Recreation Center
State law requires that an election take place between the time the council approves a
2310 Coulter Boulevard
compensation increase and when it takes effect Therefore, any increase approved by the
Phone 952 2271400
City Council would not take effect until January 1, 2017.
Fax 952 2271404
Planning &
RECOMMENDATION
Natural Resources
Phone 952 2271130
It is my recommendation that the Mayor's salary increase from $500 to $750 per month and
Fax 952 2271110
the City Council's salary increase from $400 to $600 per month I also recommend that the
council adopt the attached ordinance that will link future raises to the Consumer Price Index
Public Works
7901 Park Place
(CPI) used by the State Office of Management and Budget Therefore, future pay increases
Phone 952 2271300
will automatically adjust along with the CPI (see attachment #4 example)
Fax 952 2271310
ATTACHMENTS
Senior Center
Phone 952 2271125
Fax 952 2271110
1 Updated (12/3/14) Mayor and City Council Compensation Survey from Key Financial
Strategy Cities
Website
2 Proposed Ordinances with and without linking future raises to CPI
www ci chanhassen mn us
3 Ordinances 52 -C, 228 and 333 amending City Council Compensation
4. Future Pay Increases Based on the Proposed Ordinance Linking Mayor and City Council
Raises to CPI
g \admen \tg \council compensation \cc memo 12 -1 -14 docx
Chanhassen is a Community for Life - Providing forTodayand Planning for Tomorrow
Mayor Comparable Wages - KFS Cities
Organization
Population
Region
No of
Elected
Annual Wages
Per Capita
Wage
g e
Additional Payment for Special Meetings
Stillwater
18,235
Metro
1
$9,00000
$049
Additional Payment for Special Meetings
Farmington
18,959
Metro
1
$7,02000
$037
Rosemount
Lino Lakes
20,305
Metro
1
$5,018.00
$025
$40
Rosemount
22,384
Metro
1
$9,20000
$041
Chanhassen
Prior Lake
23,385
Metro
1
$9,42000
$040
$50
Chanhassen
23,779
Metro
1
$6,00000
$025
$50 (Max $150 /Mo)
Chaska
24,211
Metro
1
$8,208.00
$034
Savage
Elk River
1 24,3611
Metro
1
$10,00000
$041
Add $1,800 if on EDA
Savage
27 , 5671
Metro
1
$6,00000
$022
Cottage Grove
Andover 1
31 ' 2981
Metro
1
$9,50000
$030
Cottage Grove 1
34,5021
Metro
1
$6,78000
$020
Average
Median
$7,83145
$7,02000
City Council Comparable Wages - KFS Cities
18,235
Metro
4
No. of
$039
Additional Meetings
Farmington
Organization
Population
Region
Elected
Annual Wages
Per Capita
Additional Payment for Special Meetings
20,305
Metro
4
Officials
$025
Wa a
g
Rosemount
Stillwater
18,235
Metro
4
$7,20000
$039
Additional Meetings
Farmington
18,959
Metro
4
$7,02000
$037
Lino Lakes
20,305
Metro
4
$5,01800
$025
$40
Rosemount
22,384
Metro
4
$7,00000
$031
$50 (Max $150 /Mo)
Prior Lake
23,385
Metro
4
$7,44000
$032
$50
Chanhassen
23,779
Metro
4
$4,80000
$020
$50 (Max $150 /Mo)
Chaska
24,211
Metro
4
$6,94800
$029
Elk River
24,361
Metro
4
$7,00000
$029
Add $1,800 if on EDA, acting Mayor gets extra $500
Savage
27,567
Metro
4
$6,00000
$022
Andover
31,298
Metro
4
$7,50000
$024
Cottage Grove
34,502
Metro
4
S6,78000
S020
Average $6,60964
Median $7,00000
History of Mayor & Council Wages
* In 2002 compensation for additional meetings other than regular city council meetings was added to a maximum of $150 month
for both Mayor and City Council There was no adjustment in annual wage in 2002
Year Changed
Annual Wage
Additional Meetings
Mayor
1983
$ 3,600 00
1994
$ 6,00000
2002 *
$50 (Max $150 /Mo)
City Council
1983
$ 2140000
1994
$ 4,800 00
2002 *
1
$50 (Max $150 /Mo)
* In 2002 compensation for additional meetings other than regular city council meetings was added to a maximum of $150 month
for both Mayor and City Council There was no adjustment in annual wage in 2002
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO
AN ORDINANCE AMENDING CHAPTER 2 OF
THE CHANHASSEN CITY CODE CONCERNING
BOARDS AND COMMISSIONS
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS-
SECTION 1. Section 2 -1 of the Chanhassen City Code is amended to read.
Sec 2 -1. - Compensation of city council.
(a) City council members shall receive a salary of $600.00 per month The mayor
shall receive a salary of $750 00 per month
(b) The mayor and council members shall also receive $50 00 for each meeting,
other than regularly scheduled council meetings, that they attend on behalf of
the city, but not more than $150.00 per calendar month.
(c) Salary review On September 1 of even numbered years beginning in 2018, the
salaries in subsection (a) and (b) 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
SECTION 2. This ordinance shall be effective after the next succeeding municipal
election on January 1, 2017.
PASSED AND ADOPTED this day of , 2014, by the City Council of the
City of Chanhassen, Minnesota
ATTEST-
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on , 2014)
g•\admm \tg \council compensation \ordmance 1 docx
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO
AN ORDINANCE AMENDING CHAPTER 2 OF
THE CHANHASSEN CITY CODE CONCERNING
BOARDS AND COMMISSIONS
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS.
SECTION 1. Section 2 -1 of the Chanhassen City Code is amended to read.
Sec. 2 -1. - Compensation of city council.
(a) City council members shall receive a salary of $600.00 per month The mayor
shall receive a salary of $750.00 per month
(b) The mayor and council members shall also receive $50 00 for each meeting,
other than regularly scheduled council meetings, that they attend on behalf of
the city, but not more than $150 00 per calendar month
SECTION 2. This ordinance shall be effective after the next succeeding municipal
electron on January 1, 2017.
PASSED AND ADOPTED this day of , 2014, by the City Council of the City
of Chanhassen, Minnesota.
ATTEST
Todd Gerhardt, City Manager
Thomas A Furlong, Mayor
(Published in the Chanhassen Villager on , 2014)
g \admm \tg \council compensation \ordinance 2.docx
•
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO. 52 -C
AN ORDINANCE AMENDING SECTIONS 1 AND 2 OF ORDINANCE 52 -B,
ADOPTED APRIL 9, 1980, AND ENTITLED "AN ORDINANCE ESTABLISHING
COMPENSATION FOR MEMBERS OF THE CHANHASSEN CITY COUNCIL ".
THE CITY COUNCIL OF CHANHASSEN ORDAINS:
Section 1. Sections 1 and 2 of Ordinance No. 52 -B, adopted
April 9, 1980, entitled " An Ordinance Establishing Compensation
for Members of the Chanhassen City Council" is amended to read as
follows:
Section 1. Council Compensation. Members of the Chanhassen
City Council shall receive compensation from the City at a
rate of $200.00 per month.
Section 2. Compensation for Mayor. In addition to compen-
sation as a Councilmember, the Mayor of Chanhassen shall
receive $100.00 per month for the additional duties required
of that office.
Section 2. Effective Date. This ordinance shall become effec-
tive on January 1, 1985.
Passed and adopted by the City Council thisl7th day of October,
1983.
ATTEST:
a
Don Ashworth, Cit Clerk/Manager homas L. Hamilton, Mayor
Published in the Carver County Herald on October 26 1983.
40
0
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO. 228
AN ORDINANCE AMENDING CHAPTER 2 OF THE
CHANHASSEN CITY CODE CONCERNING
THE COMPENSATION OF THE CITY COUNCIL
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
SECTION 1. Section 2 -1 of the Chanhassen City Code is amended to read:
Members of the City Council shall receive compensation from
the City at a rate of four hundred dollars ($400 00) per
month. In addition to compensation as a council member, the
mayor shall receive one hundred dollars ($100 00) per month
for the additional duties required of such office.
Section 2. This ordinance shall be in full force and effect after the next
succeeding municipal election
PASSED AND ADOPTED this 24th day of October
Council of the City of Chanhassen.
, 1994, by the City
(Published in the Chanhassen Villager on November 3, 1994, 1994).
18186
09/28/94
CITY OF CHANHASSEN
is CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO. 333
AN ORDINANCE AMENDING CHAPTER 2
OF THE CHANHASSEN CITY CODE CONCERNING
COMPENSATION OF THE CITY COUNCIL
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
SECTION 1. Section 2 -1 of the Chanhassen City Code is amended to read:
Sec. 2 -1. Compensation of City Council.
(a) Members of the City Council shall receive compensation from the City at a rate
of four hundred dollars ($400.00) per month. In addition to compensation as a
councilmember, the mayor shall receive one hundred dollars ($100.00) per month for the
additional duties required of such office.
(b) The mayor and councilmembers shall also receive fifty dollars ($50.00) for
each meeting, other than regularly scheduled Council meetings, that they attend on behalf of
the City, but not more than one hundred fifty dollars ($150 00) per calendar month.
SECTION 2. This ordinance shall be effective after the next succeeding municipal
election on January 1, 2003
PASSED AND ADOPTED this 10 day of January, 2002 by the City Council of the City
of Chanhassen, Minnesota
;7,"j"St-
dd Gerhardt, City Manager
Linda C. Jansen, M r
• (Published in the Chanhassen Villager on January 24, 2002).
98048 03 (C)
RNK:12/20 12001
Future Pay Increases Based on the Proposed Ordinance Linking
Mayor and City Council Raises to CPI
W16 WAI TUM =1
Date
CPI
2016
1.7%
2017
1.0%
TOTAL
27%
Example purposes only. Mayor's salary for September 1, 2017 is $10,000
Based on the example above and if City Council approves the attached ordinance, if the Mayor's
annual salary is $10,000 on September 1, 2017, the adjusted compensation would be the two
years of CPI (Total of 2 7% or $270) starting on January 1, 2018. Thus, the Mayor's new salary
would be $10,270