Although the Morgan Hill City Council directed staff to examine
a pay raise for themselves last week, the modest increase certainly
won
’t break the city’s embattled bank account if ultimately
approved.
Although the Morgan Hill City Council directed staff to examine a pay raise for themselves last week, the modest increase certainly won’t break the city’s embattled bank account if ultimately approved.
By 4-1 vote, council members told staff to determine a cost of living increase based on this year’s index and not to exceed the 5 percent allowed by state law. Though the council must make a final vote before the increase goes into effect, council member pay will not increase until after the November 2006 election. Councilman Steve Tate voted against the measure.
Currently, the city council members receive a salary of $300 a month and the mayor receives $800 a month. The council decided against allowing a stipend of $30 per Redevelopment Agency meeting. The council also comprises the RDA board.
The decision to increase council pay was suggested by Mayor Dennis Kennedy to the Financial Policy Committee in August. Council members’ pay has not increased since 1986 and the mayor’s salary has been in effect since 1996. Kennedy asked the committee to obtain information about how other cities have handled council member pay and report their findings to the city council.
During last Wednesday’s council meeting, Finance Director Jack Dilles told council members state law sets the maximum pay for council members of cities with a population between 35,000 and 50,000 at $400 a month or the amount last approved plus 5 percent of each subsequent calendar year. The council could have raised their pay to $722 per month. State law also allows the mayor the same pay increases as council members, plus any additional amount that may be provided by ordinance.
To begin discussion, Mayor Kennedy proposed that the RDA board receive a $30 per meeting stipend and council pay be increased to $400 a month, effective after the November 2006 elections. In addition, he suggested that council pay be increased based on a cost of living index every other year after.
Tate, who is also Mayor Pro Tempore, spoke against any move to increase council pay.
Councilman Larry Carr said he did not feel the council should approve any increases and was against any increase being retroactive.
“I’d be willing to consider it in the future, past the 2006 elections because there are some things we are doing to take care of the budget situation, but if it changes anything to the current budget situation we have approved, then no,” said Carr. The city is facing a budget deficit of $1.2 million next year and anticipates the deficit will continue until 2009.
“I too understand our financial situation and am halfway between two thoughts,” said Councilman Greg Sellers. He said the RDA monthly stipend “makes sense in concept, in practice it’s significant during a difficult fiscal situation,” but he said he would support increases to take effect after the November 2006 election. He too was not in favor of making pay increases retroactive.
Councilman Mark Grzan supported Mayor Kennedy’s proposal.
“I think it’s consistent with what other cities have done … council pay has not been adjusted since 1986,” Grzan said. “The compensation we receive is minimal and would not have an impact.”
He added, in view of rising costs in gasoline and the fact that council members have not sought reimbursement for travel, he believed a $400 pay increase was “appropriate.”
In addition to their monthly salaries, council members are entitled to be reimbursed for expenses they incur for travel to various meetings, but Dilles indicated, while they have been reimbursed for hotel accommodations for overnight meetings or conferences, the council members as a rule have not sought expense reimbursements from the city.
Council members are also entitled to the city employee health insurance, but only one council member uses the insurance.
Hesitant because of the city’s financial situation, council members continued their discussion and came to a general consensus for a cost of living increase only.
The council wanted to make sure the public did not misconstrue their actions and stressed, the increases will take effect after a new council is seated following the November 2006 elections. The mayor’s two-year term, and the four-year terms of Tate and Sellers will be up for election in 2006.
Tate stood his ground regarding the modest increase recommendation.
“We’ve just moved to add two additional police officers and a labor contract with city employees,” he said. “We took this job knowing we would get token pay, I don’t see any justification. I see other justifications for use of the city’s money. I’d like it to keep the pay just the way it is.”
