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HomeMy WebLinkAboutX-E-01 1st Reading of Ordinance Changing Mayor and City Council Wages City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: September 19, 2022 Item: City Council Compensation Council Action Requested: If the City Council is so inclined, the ordinance will need two readings and adoption prior to the November 8 general election. The attached ordinance is based on the average wage paid by neighboring cities. Additionally, paragraph #4 formalizes the technology stipend. The ordinance can easily be modified to remove the stipend or change any of the dollar amounts. Background Information: Annual Compensation: Compensation of the Mayor and Councilmember positions was last adjusted in 2014 with an effective date of January 1, 2015. Per state statute, changes to City Council compensation are effective the first of the year following adoption if that adoption occurs before the General Election date. Attorney Land has advised that the ordinance would take effect on a single date for all Councilmembers, regardless of different election cycles. Presently, Hastings compensates the Mayor at $9,400 and City Councilmembers at $7,200 annually. In December 2021, the City Council asked that this be included in the Compensation & Classification Study in order to make sure we are consistent with other communities. Current Study Average Mayor $ 9,400 $ 10,154 City Council $ 7,200 $ 7,694 Technology Stipend: About 6 years ago the City began providing a $400 stipend to City Councilmembers in acknowledgment of their expense and use of personal technology equipment for Council packets and emails. In planning for the 2022 budget, we included funds to provide another round of stipends recognizing that expenses are ongoing beyond a single term. Upon additional research, we did not make these payments this year. As these payments are not clearly a reimbursement of work expenses (no receipts, no tracking), the stipends should be considered as compensation. If the City Council wishes to continue with the technology stipends, they should be formalized in the compensation ordinance. The Administration Committee recommended that the City provide I-pads or similar City-owned equipment for Councilmembers to use for packets, emails, and other City business. This would enable X-E-01 City IT staff to support the devices and would allow for a more consistent professional image of Councilmember emails. Providing a City-owned device would not require an ordinance. The IT department estimated the cost of an I-pad would be about the same as the $400 stipend. In the event that the City Council decides to continue with the stipend, IT Manager Dave Hokstad and I have discussed ways to address some of the technology concerns. City staff could provide basic tech support for City Council access to email and packets. Financial Impact: 2023 Budget recommendation includes $6,550 to cover this. Committee Discussion: Administration Committee (Lund*, Fox, and Leifeld) met July 27 and August 5 City Council workshop August 15 Attachment: Ordinance Changing the Compensation of the Hastings Mayor and City Councilmembers X-E-01 An Ordinance of the City of Hastings Changing the Compensation of the Hastings Mayor and City Councilmembers Be it hereby ordained by the City Council of the City of Hastings as follows: Hastings Code Section 31.04 is hereby amended to read: 31.04 Salaries Of Mayor And Councilmembers 1. The salaries of the Mayor and City Councilmembers shall be set from time to time by the City Council. 2. The compensation paid to the Mayor for service to the City as Mayor shall be $10,200 per year, to be paid in 12 equal monthly installments during the time the person serving as Mayor is in office. 3. The compensation paid to Councilmembers for service as Councilmembers shall be $7,700 per year, to be paid in 12 equal monthly installments during the time the person serving as councilmember is in office. 4. Additionally, the Mayor and each Councilmember shall receive a $400 technology stipend per four- year term, or portion thereof, to offset the expense and use of personal technology equipment in performance of their roles. 5. Any Mayor or councilmember who serves less than a full month shall receive a pro-rated portion of the monthly installments. 6. The salaries in effect on the date this ordinance was adopted shall remain in place until January 1, 2023, at which time the new salaries shall become effective. Passed the _____ day of October, 2022. Mary Fasbender, Mayor Attest: Kelly Murtaugh, City Clerk X-E-01