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File #: 19-1013    Version: 1 Name: 7/1/19 LOCC Resolution to Determine Salaries (2019)
Type: Report or Communication Status: Filed
File created: 6/10/2019 In control: City Council
On agenda: 7/1/2019 Final action: 5/13/2019
Enactment date: Enactment #:
Title: Resolution to Determine Salaries of the Mayor and City Council Members for FY 2021 and FY 2022
Attachments: 1. CPI year ending December 2018.pdf, 2. Council Mayor Data 2019.xlsx, 3. Council and Mayor Pay Practices-City HR 7.28.17.xlsx, 4. Wage comparison by union 2009-2019 6.6.2019.xlsx, 5. Council survey data 2019.xlsx, 6. Resolution to Determine Salaries - alternate.pdf, 7. LOCC 2019 Determination-Filed.pdf

Title

Resolution to Determine Salaries of the Mayor and City Council Members for FY 2021 and FY 2022

Body

Whereas, The members of the Local Officers Compensation Commission wish to ensure that service as a member of City Council and as Mayor is accessible to all those eligible to run for office, regardless of their financial status;

 

Whereas, The Commission recognizes that serving on City Council and as Mayor requires a significant amount of time in order to listen to, act on behalf of, and be accessible to constituents; to review information that informs policy-making; to attend commission and task force meetings and meetings with City staff; and to attend Council meetings;

 

Whereas, The Commission recognizes that the cost of living in Ann Arbor continues to climb, and that serving on City Council and as Mayor now and in the future should not be limited to those with greater financial wealth;

 

Whereas, The Commission also recognizes that the City budget has a great number of demands, and wishes to both compensate City Council Members and the Mayor fairly, while also being fiscally responsible and mindful of the need for financial resources everywhere;

 

Whereas, After reviewing the self-reported time commitments necessary to perform the duties of City Council Members and the Mayor, the Commission wishes to link the compensation of the Council members to that of the Mayor, recommending that Council Members be paid no less than 50% of the Mayor; and

 

Whereas, The Commission has employed the following measures and process to determine the change in salaries:

 

The Council members’ salaries are set to 50% of the Mayor’s salary for each year. The Mayor’s salary is increased in the next two fiscal years according to a cost-of-living calculation as follows:

 

The increase in salaries for each fiscal year is equal to the average of the annual percent change in CPI for the year 2018 and the annual percent change in City nonunion employee compensation for the year 2018.

 

The percent change in CPI from December 2017 to December 2018 is 1.9%.The CPI used is the U.S. CPI-U (U.S.; all items; base 1982-1984 = 100; non-seasonally adjusted) published by the federal Bureau of Labor Statistics.

 

The percent change in City nonunion employee compensation for 2018 is 3%.

 

The average of the CPI and City nonunion compensation is therefore (1.9% + 3%) / 2 = 2.45%.

 

RESOLVED, That the Local Officers Compensation Commission of the City of Ann Arbor, in its 2019 session, determines the following salaries for the Mayor and Council members of the City of Ann Arbor:

 

Mayor:                                         

Current FY 2020 salary:                                                               $45,210.19

FY 2021 salary (start July 1, 2020):                     $45,210.19 x 1.0245 =                      $46,317.84

FY 2022 salary (start July 1, 2021):                      $46,317.84 x 1.0245 =                      $47,452.63

 

Council members (10 members):

                     Current FY 2020 salary:                                                               $16,953.81

                     FY 2021 salary (start July 1, 2020):                     $46,317.84 x .5 =                                          $23,158.92

                     FY 2022 salary (start July 1, 2021):                     $47,452.63 x .5 =                                          $23,726.32

 

Total salaries (Mayor plus 10 Council members):

                     Current salaries:                                                                                    $214,748.29

                     FY 2021 salaries (start July 1, 2020):                     $277,907.04

                     FY 2022 salaries (start July 1, 2021):                     $284,715.83

 

RESOLVED, That this resolution be filed with the City Clerk and transmitted to the City Council as soon as practicable.