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HomeMy WebLinkAbout5I Posting Base Salaries O.� P RIp� � � V � 4646 Dakota Street SE Prior Lake, MN 55372 ��Mveso� CITY COUNCIL AGENDA REPORT MEETING DATE: April 22, 2013 AGENDA #: 51 PREPARED BY: Kelly Meyer, Asst. City Manager �' PRESENTED BY: Kelly Meyer AGENDA ITEM: CONSIDER APPROVAL OF LANGUAGE IN ACCORDANCE WITH MN STAT. 471.701 RELATED TO POSTING OF BASE SALARIES. DISCUSSION: Introduction The purpose of this agenda item is to consider approval of the language the City will post on its web site pursuant to MN Stat. 471.701 His tOry ' During its regular session in 2005, the Minnesota State legislature adopted legis- lation that required cities exceeding 15,000 population to annually report the base salaries of its three highest paid positions. Under the statute, the reporting may be accomplished by (1) posting on the home page of the City web site for a period of 90 consecutive days, (2) reporting in a publication that is delivered to all residents in the jurisdiction, or (3) reporting in the annual notice of proposed property taxes. We have been posting the base salaries of our highest paid employees annually on the home page of the City web site. Current Circumstances Normally, a matter of this type would not require Council consideration. It is a reporting task that the staff accomplishes in the regular course of our day-to-day operation. However, as the Council is aware, in December 2012 the City re- ceived a complaint that its posting of base salaries in compliance with the statute intentionally misrepresented the wages employees would receive by excluding other eligible layers of pay. (The complaint has been referred to the Attorney General who we hope will render an opinion clarifying this matter.) And where the complainant and the staff disagree as to the interpretation of the statute, it did bring to the forefront a discussion amongst the Council of whether it desired to post information in a different way, or in a manner that exceeded the statutory requirements in order to provide a higher level of transparency. Staff has considered the Council discussion, and the following language is pro- posed for posting on the home page of the web site. Staff has also scheduled a work session with the Council on May 13, 2013 (open to the public) to provide an overview of the City's compensation system and the statutes, rules and regula- tions we are responsible for administering as part of our compensation program. Proposed Lanauaae: MN Statutes 471.701 requires that cities with a population greater than 15,000 annually post the "base salaries of its three highest paid employees". Longevity pay and additional components of total wages have also been listed. However, it should not be presume as total comp ___ —_ ___ __ --_;__._ _. � Position j 2013 Base Salary � Longeviry Pay � Other i ; City Manager !$121,804 $22,500 ' The City Manager also rece►ves ; ; � $5400 annually for car allowance. ' � �I The City Manager is not eligible for ; � ' bonus pay or overtime pay regard- i i 3 � less of hours worked. , ? -- -- --- .___. _ __ __ _ _ � Police Chief ; $113,552 �� � ance, pay or ov�e� me ae � I j � � � ! ; ; j gardless of hours worked. � � Finance Director �$107,554 ; 0 C Noteligible forlongevity, carallow- ; ' : ance, bonus pay or overtime re- ; � � In addition, MN Statutes 43A.17, sub. 9, lim►ts sa/aries" �hours worked. � 1 ', gardless of � ' " �ncludes longevity but excludes overtime) to 110% of the Minnesota Governor's salary unless a waiver is obtained from the State Management and Budget division. The 2013 maxi- mum is $160, 639. The Citv of Prior Lake has no employees over the statutorv maximum. As a reference, attached are copies of how some other cities post to meet their �, interpretation of the statutory requirement. �� Conclusion Staff has proposed the above language that we believe is responsive to the City Council's last discussion. The City Attorney has reviewed and approved the language. We are seeking Council input to assure that it meets their objectives. ISSUES: There are no significant issues. As Council members are aware, compensation can be a complex topic. Many factors, such as pay equity, overtime eligibility, other layers of pay, union contracts, benefit packages, market comparison, ten- ure, cost of living (CPI-U), statutory requirements, and the ability to recruit quali- fied candidates, can impact rates of pay. Further complicating matters from a reporting standpoint is that rates of pay are often fluid as individual employees move through the salary plan. Like the Council, the City staff is committed to providing residents as much valu- able information as we can so that the community we serve understands the costs for providing services. Compensation (and other) information is available to the public by: (1) making a request of staff under the Government Data Prac- tices Act; (2) staff is also generally available by phone and email to answer questions; and (3) a wealth of information can also be found on the City website in the Document Center, including the annual budget document, and City Coun- cil staff reports and labor agreements, all of which provide details on the costs for personnel. If the attorney General's opinion reveals that a posting modification is appropri- ate or if the council directs modifications, the staff will implement the desired changes promptly. I FINANCIAL There is no appreciable additional cost for implementing this change. �' IMPACT: ALTERNATIVES: The Council has several options: 1. Motion and Second to approve the above language as part of the consent agenda for posting on the City website for 90 consecutive days commencing May 1. 2. Remove this item from the Consent Agenda for additional discussion. RECOMMENDED MOTION: As the Council deems appropriate. City of Hopkins, Minnesota Pag� g o� g � Alarm Registration �O City of Hopkins, 2013 :: 1010 l St S, Hopkins, MN SS343 Contact Us i • Site Policies Minnesota state law requires that "a city or county with a population of rnore than 15,000 inust annually notify its residents af the positions and base salaries of its three highest-paid einployees." For the City of Hopkins, titles and salaries as of January 1, 2013 are: City Manager �$118,477; Public Works Director -$108,763; and Police Chief -$105,643. Publication Date: Januaiy 4, 2013. http://www.hopkinsmn.com/ 4/9/2013 Hotne Page 1 af 2 � :� �I 4 ��l Y ! If�t t' YF ' '� � �,s' - _ _ r % __ -...'P ..�.nYFL,.. 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