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CITY COUNCIL AGENDA REPORT
August 20, 2001
9C
Councilmembers Ericson and Gundlach
(Council Compensation Subcommittee)
AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE AMENDING THE POLICY
REGARDING CITY COUNCIL COMPENSATION.
DISCUSSION: History: As the Council is aware, monthly Mayor and City Council pay rates will
increase from $350 and $250 respectively, to $475 and $375 effective January 1,
2002. Despite this revision, which was adopted by ordinance last January, the
Mayor and City Council salaries are still below the average estimated pay for city
councils by approximately $500 annually.
The City Manager has proposed that an additional $500 be added to the salary
for the Mayor and City Council effective January 1, 2002. The Council has
directed the subcommittee to review' that proposal and make its
recommendations to the Council.
Current Circumstances: The subcommittee believes it is inappropriate to add a
flat $500 each to Mayor and City Councilmember salaries. Instead, similar to the
County Board and School Board, we propose a system of per diem payments
which will serve to encourage Councilmembers to attend outside meetings which
are relevant to their City Council responsibilities but are outside the typically
expected duties of a City Councilmember. Our proposal in addition to the
monthly salary rates set forth above, is a $40 per meeting per diem. Qualifying
per diem meetings are discussed below.
Assuming that a Councilmember attends a "per diem" meeting each month (or
12 per diem meetings a year), this would result in an increase in remuneration of
$480 per year for the Council member. If, on the other hand, a Councilmember
chooses not to attend any per diem meetings, there would be no increase. If they
chose to attend more, there would be a greater increase. In short, pay for
performance.
The bodies for which a per diem would be proposed are as follows.
1. If a Councilmember (including the Mayor) has been designated by the City
Council as a liaison to another body.
2. Participation in designated Association of Metropolitan Municipalities.
League of Minnesota Cities, or National League of Cities activities.
3. Participation in any Council-appointed committee or subcommittee.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
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ISSUES:
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
4. Meetings of bodies which the Councilmember has been appointed the City
Council's representative.
Councilmembers would be responsible for recording and documenting the
meetings in which they participate and are requesting per diem remuneration.
Conclusion: We are seeking City Council feedback on this proposal and have
enclosed for your information a draft ordinance amendment which would
implement the per diem system proposed above.
The purpose of the salary system is to remunerate members of the City Council
for expenses incurred and time devoted to City activities. The proposed base
salary system (previously approved by the City Council) and per diem (outlined in
this memo) accomplish two objectives. First, the two raise Council salaries so
they are comparable to most other cities. Second, the per diem system
encourages Councilmembers to attend certain meetings which the Council
deems important to accomplish Council responsibilities.
The cost of the January 1, 2002 adjustment and the proposed per diem system
are incorporated in the 2002 budget.
(1) Adopt the proposed ordinance establishing a per diem system as set forth in
this report.
(2) Take no action and provide direction the Compensation subcommittee.
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CITY OF PRIOR LAKE
ORDINANCE NO. 01-XX
AN ORDINANCE AMENDING SECTION 105 OF PRIOR LAKE CITY CODE
WITH RESPECT TO SALARIES FOR CITY COUNCILMEMBERS
The City Council of the City of Prior Lake does hereby ordain:
1. Section 105 of the Prior Lake City Code is hereby amended to add subsection 105.400 as set
forth below:
105.400: Per Diem. In addition to the salaries set forth in Section 105.300 Councilmembers (for the
purposes of this Section, Councilmember includes the Mayor) may be eligible for a per
diem remuneration.
105.401 Policy: The City Council deems it appropriate and prudent to remunerate City
Councilmembers for participation in certain meetings. Such remuneration encourages
Councilmembers to become more informed regarding constituent issues and better
representatives of the City.
105.402 Per Diem Rate: For each eligible meeting attended, a Councilmember will receive $40 to
remunerate time spent and out-of-pocket expenses.
105.403 Per Diem Requests: A Councilmember requesting per diem remuneration for attending a
qualifying per diem meeting shall do so on forms prescribed therefore. The request to the
Finance Department shall indicate the number of meetings for which remuneration is
requested, the date, time and organization conducting the meeting and the
Councilmembers' role at the meeting.
105.404 Qualifyin~ Per Diem Meetin~s: The Finance Department shall approve per diem
remuneration only for meetings which meet the criteria set forth below:
(a) Subcommittees of the City Council to which a Councilmember has been appointed.
(Examples include Special Assessment Committee, Annexation Task Force).
(b) Meetings of City Advisory Committees to which the Council member is the liaison
(Examples: Planning Commission, Parks Advisory Committee, Lake Advisory Committee,
Business Advisory Council)
(c) Meetings of bodies to which a Councilmember has been appointed the City Council's
representative. (Examples: Prior Lake / Spring Lake Watershed Commission, Orderly
Annexation Board, MVTA)
(d) Policy Committee meetings or annual meetings or conferences of the Association of
Metropolitan Municipalities, League of Minnesota Cities, or National League of Cities.
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
This ordinance shall become effective as of January 1, 2002 after its passage and publication.
Passed by the City Council of the City of Prior Lake this _ day of ,2001.
ATTEST:
City Manager
Mayor
Published in the Prior Lake American on the
day of
,2001.
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