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HomeMy WebLinkAboutInformation Update.202010051 AGENDA INFORMATION UPDATE October 5, 2020 4:00 PM, I.INFORMATION UPDATE I.A.Comparison of City Council Salaries 1 MEMORANDUM TO: Aspen Mayor and City Council FROM: Sara Ott, City Manager Ron LeBlanc, Special Projects Manager Copy: Jim True, City Attorney Alissa Farrell, Administrative Services Director MEMO DATE: October 1, 2020 RE: Comparison of City Council Compensation BACKGROUND: The City Council discussed the topic of Mayor and Council compensation during a Work Session on March 9, 2020. The agenda packet contained a memo prepared by City Attorney Jim True, with the assistance of Alissa Farrell who prepared a table of data to illustrate comparisons of various cities. For the convenience of those who may be reading this memo, the agenda memo dated March 5 is attached. The summary of the legal basis for the current City Council compensation has not changed since the previous discussion. The focus of this memo is to provide expanded and updated comparison data with other cities. RECOMMENDATION: There is no staff recommendation. This is being provided as information only. DISCUSSION: As mentioned, the focus of this memo is to provide expanded and updated comparison data with other cities. This information was compiled using information obtained from the Colorado Municipal League (CML), Colorado Association of Ski Towns (CAST), and individual contacts with additional cities. TABLE 1 – COMPARISON OF SALARIES FOR ELECTED OFFICIALS displays data from 28 cities and towns throughout the Rocky Mountain West. While these communities are similar to Aspen in many respects, each community has a distinctive character that makes it unique. The majority of these peer cities are from Colorado. Colorado has a strong Home Rule tradition that is rooted in the Constitution of the State of Colorado. The majority of these peer Colorado communities operate with a Home Rule Charter that was adopted by a vote of the people and follow the Council-Manager form of government. Five of these peer cities in Colorado are statutory towns (Basalt, Eagle, Estes Park, Fraser, and Grand Lake) taking their powers and authorities from state statutes. 2 The powers granted to the Mayor, City Council and City Manager are very similar for each of the peer cities in Colorado. The Council or Town Board is the legislative body. In most situations, the Mayor is a voting member of the governing body. Their role is to set policy including the approval of the annual budget. The governing body is responsible for appointing the city manager, city attorney and municipal judge. It might be instructive to provide additional details regarding roles and responsibilities. The Aspen City Charter specifies that the Mayor is “recognized as the head of government for all ceremonial and legal purposes and he or she shall execute and authenticate legal instruments requiring his or her signature as such official.” This is typical language found in most Home Rule Charters that are based on the National Civic League’s Model City Charter. Only three mayors in Colorado possess true executive authority (such as developing the annual budget and hiring/ firing staff) can be found in Denver (technically a city/county consolidation), Colorado Springs and Pueblo. The vast majority of municipalities in Colorado view the Office of Mayor as a part time position. The powers and duties of City Managers in Colorado represent a traditional executive function, designed to “execute” the policies of the governing body. The Aspen City Charter enumerates the powers and duties of the City Manager in Section 6.3. The City Manager is responsible for all personnel functions, developing an annual budget, reporting financial condition on a routine basis, supervising and directing the various departments and managing the day to day affairs of the City. A notable exception to this is the Town of Avon which was initially created with a Council-Mayor form of government and provides for a Council-Manager form when the Council determines such form is appropriate. Five peer cities used in this comparison are located outside Colorado. These are Jackson WY, Ketchum ID, Moab UT, Park City UT, and Sun Valley ID. All of these communities more closely resemble statutory communities in Colorado rather than Home Rule municipalities. Ketchum, Moab, Park City and Sun Valley are statutory municipalities established under state statutes. Jackson operates under a Charter Ordinance that was adopted by the City Council. In Ketchum, Moab, Park City, and Sun Valley, the Mayor serves as the Chief Executive. The form of government may be a contributing factor to explain why the salaries of these five out of state communities are the highest of the peer cities. Park City has the highest salaries for elected officials. It pays its Mayor $3,706 per month and City Council members are paid $1,914 per month. Jackson is the second highest: Mayor ($3,275); Council ($2,729). This is followed by Ketchum with salaries for Mayor ($3,122) and Council ($1,734). The City of Aspen comes in at number four on the list as it pays the Mayor $2,325 per month and members of the City Council receive $1,700 per month. Snowmass Village is number five on the list at $2,200 per month for Mayor with City Council getting paid $1,700 per month. The City of Sun Valley is next paying their Mayor $1,700/month and City Council $1,000/month. Most Colorado communities pay less than $1,500 per month for Mayor and $1,042 per month for City Council. Colorado has 271 incorporated cities and towns. Denver, Colorado Springs, Aurora, and Pueblo compensate their Mayors more than Aspen. Denver, Colorado Springs, and Pueblo follow the Mayor-Council form of government. The Mayors in these cities receive: Denver- $14,266/month, 3 Colorado Springs - $8,614/month, Aurora - $6,867/month, and Pueblo - $12,500/month. It appears that the City of Aspen currently compensates the Mayor $2,325/month (fourth highest in the state) while the majority of Colorado cities compensate the Mayor less than $1,500/month. A sitting Council cannot vote to increase their compensation until an election has taken place for their seat on the governing body. The comparison data reflects the most recently approved salary for Mayor and Council in that municipality. While some sitting elected officials who have not run for re-election under the new ordinance may be compensated at the old rate, all newly elected members of the governing body will be compensated at the new rate after the next election. Benefits are also part of the total compensation for members of the City Council. This becomes very complicated to identify and quantify. Benefits for members of the governing body differ greatly from city to city. Of the 28 peer cities, only ten were confirmed to offer health, life, dental, and vision insurance (Aspen, Avon, Durango, Estes Park, Jackson, Park City, Snowmass Village, Steamboat Springs, Sun Valley and Telluride). These costs are budgeted annually, however, not every member of the governing body who is eligible opts to take the city’s insurance. The out of state peer cities frequently also contribute to the state pension system on behalf of the elected official. Typically, the vesting period for a state retirement system is five years, most terms of office are only four years. Those municipalities that offer health insurance and paid retirement will also have the highest total compensation numbers. Most of the peer cities in Colorado offer a wide range of low cost/no cost benefits such as wellness passes to recreation centers, free car washes at the city owned facility, and cell phone stipends. SUMMARY: This information represents the most current data available. The COVID economy has forced some cities to reduce salaries, including those of elected officials. However, those reductions are considered to be temporary, so the maximum authorized salaries are reflected in these data. TABLE 1 – COMPARISON OF SALARIES FOR ELECTED OFFICIALS City/Town Population Mayor Council Month Month Avon 6,442 $1,500 $750 Aspen 7,287 $2,325 $1,700 Basalt 4,658 $1,562 $1,042 Breckenridge 5,038 $1,500 $1,000 Carbondale 6,997 $1,500 $900 Crested Butte 1,771 $900 $500 Dillon 983 $900 $400 Durango 19,097 $1,117 $876 Eagle 7,085 $800 $500 Estes Park 6,310 $917 $667 Fraser 1,348 $140/mtg $100/mtg Frisco 3,281 $950 $500 Glenwood Springs 9,972 $1,200 $1,000 Grand Lake 516 $0 0 4 Gunnison 6,914 $750 $625 Jackson Wyoming 10,427 3,275 $2,729 Ketchum, Idaho 2,889 $3,122 $1,734 Moab, Utah 5,268 $1,000 $700 Mt. Crested Butte 886 $300/mtg $150/mtg Mountain Village 1,432 $800 $400 Park City, Utah 13,382 $3,706 $1,914 Silverthorne 5,129 $750 $300 Snowmass Village 2,741 $1,700 $1,200 Steamboat Springs 13,764 $1,192 $895 Sun Valley, Idaho 1,499 $1,700 $1,000 Telluride 2,494 1,000 $800 Vail 5,408 $1,000 $625 Winter Park 1,087 $400/mtg $200/mtg 5 MEMORANDUM TO: Mayor and City Council FROM: James R. True, City Attorney DATE OF MEMO: March 5, 2020 MEETING DATE: March 9, 2020 RE: Mayor and Council Compensation SUMMARY: A work session is scheduled for Monday, March 9th to consider revisions of the current compensation of the Mayor and City Council members. Comparisons to other municipalities will be presented for this discussion. Any change in compensation has to be approved by ordinance. However, a new proposed ordinance is not presented at this time. PREVIOUS COUNCIL ACTION: Section 3.6 of the Aspen Municipal Charter states, in pertinent part, as follows: The members of the council shall receive such compensation, and the mayor such additional compensation, as the council shall prescribe by ordinance; provided, however, that the compensation of any member during his term of office shall not be increased or decreased. … Based on this provision, Council raised the compensation for the Mayor and Council pursuant to Ordinance #1 adopted in March of 2001. Ordinance #1 is attached. Compensation has remained at that level since then. In 2008, a permanent modification of compensation tied to commissioner salaries was considered as a Charter amendment. However, that effort was abandoned. The previous City Council considered adjustments to the compensation pursuant to Ordinance #11 (Series of 2019). Ordinance #11 provided for an increase of $200 per month for Council and Mayor. It also included an automatic increase based on CPI at the Attachment A 6 beginning of each term for Council. This allowed an increase to occur at the beginning of a new term so that no Council member receives an increase during his or her term. The Mayor’s adjustment was also every four years. The health insurance stipend would have continued as previously provided. Ordinance #11 was read at the Council’s regular meeting of April 22, 2019 but was tabled at that time. That proposed Ordinance #11 is also attached. 7 DISCUSSION: Alissa Farrell has done additional research on compensation of elected officials throughout the west and has provided a comparison of those compensation packages through a spreadsheet that is attached. The compensation of elected officials is debated throughout this country on a regular basis. There are many varied opinions regarding amount and purpose. I will not attempt to capsulize those opinions and that debate here. At this point, Council has several options to consider. 1) Council could move to take Ordinance #11 (2019) off of the table and set it for second reading. 2) Council could direct staff to prepare a different ordinance with a different compensation package to bring to Council for first reading at an upcoming meeting. 3) Council could maintain the status quo. RECOMMENDED ACTION: Staff does not have a recommendation for action by Council. 8 ORDINANCE NO. 11 (Series of 2019) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, INCREASING THE COMPENSATION FOR THE OFFICES OF MAYOR AND CITY COUNCILPERSON. WHEREAS, Section 3.6 of the Home Rule Charter for the City of Aspen provides that members of the City Council and Mayor shall receive such compensation as the Council shall prescribe by ordinance; and WHEREAS, the current levels of compensation for the Mayor ($2,325.00 per month) and members of City Council ($1,700.00 per month) were established in January 2001, and have not been adjusted since that time; and WHEREAS, the City Council desires to provide a reasonable and equitable increase in the levels of compensation provided to the Mayor and members of the City Council so as to reflect not only the increase in the cost of living since 2001, but the increase in the commitment of time necessarily required to fulfill the duties of such elective offices; and WHEREAS, although the City Council wishes to address the cost of living increase since 2001 and the additional time commitment necessary to fulfill the duties, Council does not wish to have salary, itself, as an incentive for participating in public service; and WHEREAS, the City Council desires to establish a salary that is fair compensation and maintain that salary as it relates to increases in the cost of living without further action by Council. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1. The monthly compensation for the office of Mayor shall be increased from $2,325.00 per month to $2,525.00 per month; the monthly compensation for City Council members shall be 9 increased from $1,700.00 per month to $1,900.00 per month. Increases in compensation as set forth herein shall become effective upon the first regular City Council meeting in June 2019 for those offices elected in the last general election. In accordance with Section 3.6 of the Home Rule Charter, no current member of the City Council, including the Mayor, shall be entitled to receive such compensation increase until their present term of office has expired, and they have been duly elected or appointed to a new term. Thus, for Council positions set for election in March 2021, increases in compensation as set forth herein shall become effective upon the first regular City Council meeting in April 2021. Section 2. The monthly compensation for City Council members shall be increased based on the increase in the CPI-Denver (“CPI”) every four years to take effect at the commencement of a new term for each Council position. For Council members elected in 2019, the CPI compensation increase shall take effect in April 2023, and each April every four years thereafter. For Council members elected in 2021, the CPI increase shall take effect in April 2023, and each April every four years thereafter. The monthly compensation for Mayor shall be increased by the CPI every two years commencing April 2021. The Director of Finance shall calculate and implement the CPI increase authorized pursuant to this Section 2. Section 3. In addition, compensation for the office of Mayor and for City Council members shall include an amount sufficient to allow those officeholders to participate in health insurance benefits as follows: The Mayor and each member of Council shall be entitled to receive a stipend in addition to their monthly compensation equal to the cost of health insurance benefits authorized for regular full time City employees; provided, however, that the stipend is actually used to purchase 10 health insurance through the City or a third party insurer and that the stipend does not exceed the cost of health insurance premiums for a single person. The Mayor or any Council Member using a third-party insurer shall provide evidence of the insurance obtained to the City’s Human Resources Department. The stipend shall be determined by the Human Resources Department and implemented at the commencement of each Mayor or Council Member’s term and shall remain the same throughout each Mayor or Council member’s term. Section 4. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5. This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances amended as herein provided, and the same shall be construed and concluded under such prior ordinances. A public hearing on the ordinance shall be held on the 6th day of May 2019, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the 22nd day of April 2019. Steven Skadron, Mayor ATTEST: Linda Manning, City Clerk 11 FINALLY adopted, passed and approved this 6th day of May 2019. Steven Skadron, Mayor ATTEST: Linda Manning, City Clerk 12 ORDINANCE NO. 1 (Series of 2001) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, INCREASING THE COMPENSATION FOR THE OFFICES OF MAYOR AND CITY COUNCILPERSON. WHEREAS, Section 3.6 of the Home Rule Charter for the City of Aspen provides that members of the City Council and Mayor shall receive such compensation as the Council shall prescribe by ordinance; and WHEREAS, the current levels of compensation for the Mayor ($1,725.00 per month) and members of City Council ($1,200.00 per month) were established in March, 1996, and have not been adjusted since that time; and WHEREAS, the City Council desires to provide a reasonable and equitable increase in the levels of compensation provided to the Mayor and members of the City Council so as to reflect not only the increase in the cost of living since 1996, but the increase in the commitment of time necessarily required to fulfill the duties of such elective offices; and WHEREAS, the City Council finds that the current compensation for the Mayor and members of Council even ·after being adjusted for increases in the CPI are not sufficient to encourage persons from all economic backgrounds to participate in public service; and WHEREAS, increasing the compensation of the Mayor and members of Council may provide one incentive for citizens with modest financial incomes to consider public service; and WHEREAS, the City Council desires to proclaim and establish a custom and policy of evaluating and adjusting. the compensation levels for the Mayor and council members more frequently than it has in the past. 13 . NOW, THEREFORE, BE IT ORDAINED BY .THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1. The monthly compensation for the office of Mayor shall be increased from $1,725.00 per . month to $2,325.00 per month; the monthly compensation for City Council members shall be increased from $1,200.00 per month to$ 1,700.00 per month. In addition, compensation for the office of Mayor and for City Council members shall be increased by an amount sufficient to allow those officeholders to participate in health insurance benefits as follows. The Mayor and each member of Council shall be· e ntitled· to receive a stipend in addition to their monthly compensation equal to the cost of health insurance benefits authorized for regular full time City employees; provided, however, that the stipend is actually used to purchase health insurance through the City or a third party insurer and that the stipend does not exceed the cost of health insurance premiwns for a single person. All increases in compensation as set forth ·herein shall become effective upon the first regular City Council meeting in June 2001. In accordance with Section 3.6 of the Home Rule Charter, no current member of the City Council, including the Mayor, shall be entitled to receive such compensation increase until their present term of office has expired and they have been duly elected or appointed to a new term. Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. 14 ATTEST: '& Section 3, This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances amended as herein provided, and the same shall be construed and concluded under such prior ordinances. A public bearing on the ordinance shall be held on the 22 day of January 2001, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the 22nd day of January 2001. _ •, ... .,../' ,_. -. .\ FINALLY adopted, passed and approved this 12th day of Fe -t ... ,. .• , _. ;. ·: ) ',d, , Kathryns.KCityClerk AiTEST: 15 JPW-02/13/01-G:\john\word\ords\SALARIES.doc 2019 Council and Mayor Salary Survey Comparison Communities: Population: Form of Government: Mayor Elected by: Number of Council membe rs (includi ng Mayor): Salary of Mayor: Salary of Council Members: Health Insurance provided to Elected Officials: Aspen 7,359 Council‐Manager At‐large 5 $2,325/Month $1,700/Month yes or stipend Avon 6,365 Council-Mayor* Council 7 $1,500/Month $750/Month yes Basalt 4,170 Council-Manager At-large 7 $1,563/Month $1,042/Month no Breckenridge 4,928 Council-Manager At-large 7 $1,500/Month $1,000/Month no Park City, UT 8,378 Council-Manager- Mayor** At-large 6 $3,706/Month $1,914/Month yes Snowmass Village 2,826 Council-Manager At-large 5 $1,700/Month $1,200/Month $500 monthly cash stipend to be used for health insurance Steamboat Springs 12,965 Council-Manager Council 7 $1,192/Month $895/Month yes Vail 5,483 Council-Manager Council 7 $1,000/Month $625/Month no Winter Park 1,030 Council-Manager Council 7 $400/Meeting $200/Meeting no Average: $1,811 (w/o per mtg.) Average: $1,141 (w/o per mtg.) *Under the Avon Town Charter, a Council-Mayor form of government is established, it but also provides for a Council-Manager when the Council determines such form is appropriate. **Under the Park City Charter it states that the Mayor is the Chief Executive of the City. More information can be found here: https://parkcity.municipalcodeonline.com/book?type=ordinances#name=2_Administration Effective 4/2019 16