23
INDEPENDENT COMMISSION ON COMPENSATION FOR ELECTED OFFICIALS AGENDA Lower Level Council Chambers – 57 East First Street Monday, January 11, 2016 – 11:00 A.M. Compensation Commission: Claudia Walters – Chair Bryan Raines – Vice Chair Pete Lesar Gary Levine Anne McCawley Citizen Participation All citizens are permitted and encouraged to speak on agenda items. If you wish to speak to the Commission on any item on the agenda, please fill out a "Notice" slip with your name and the item number about which you wish to speak. Hand this to a staff person or take it to the front table. The Chairperson will call upon you in turn. 1. Approval of the minutes of the Independent Commission on Compensation for Elected Officials meeting held on November 17, 2015. 2. Discuss and consider authorizing Chairman Walters to review and approve the minutes from today’s meeting and forward to the City Council for acknowledgement. 3. Discuss and take action on the Report and Recommendations to the Mayor and City Council regarding the compensation for Mesa’s elected officials. 4. Items from citizens present. The City of Mesa is committed to making its public meetings accessible to persons with disabilities. For special accommodations, please contact the City Manager's Office at (480) 644-3333 or AZRelay 7-1-1 at least 48 hours in advance of the meeting. Si necesita asistencia o traducción en español, favor de llamar al menos 48 horas antes de la reunión al 480-644-2767.

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INDEPENDENT COMMISSION ON COMPENSATION FOR ELECTED OFFICIALS AGENDA

Lower Level Council Chambers – 57 East First Street Monday, January 11, 2016 – 11:00 A.M.

Compensation Commission:

Claudia Walters – Chair

Bryan Raines – Vice Chair Pete Lesar

Gary Levine Anne McCawley

Citizen Participation

All citizens are permitted and encouraged to speak on agenda items. If you wish to speak to the Commission on any item on the agenda, please fill out a "Notice" slip with your name and the item number about which you wish to speak. Hand this to a staff person or take it to the front table. The Chairperson will call upon you in turn. 1. Approval of the minutes of the Independent Commission on Compensation for

Elected Officials meeting held on November 17, 2015.

2. Discuss and consider authorizing Chairman Walters to review and approve the minutes from today’s meeting and forward to the City Council for acknowledgement.

3. Discuss and take action on the Report and Recommendations to the Mayor and

City Council regarding the compensation for Mesa’s elected officials.

4. Items from citizens present. The City of Mesa is committed to making its public meetings accessible to persons with disabilities. For special accommodations, please contact the City Manager's Office at (480) 644-3333 or AZRelay 7-1-1 at least 48 hours in advance of the meeting. Si necesita asistencia o traducción en español, favor de llamar al menos 48 horas antes de la reunión al 480-644-2767.

Agenda Item 1

INDEPENDENT COMMISSION ON COMPENSATION FOR ELECTED OFFICIALS

MINUTES

November 17, 2015 The Independent Commission on Compensation for Elected Officials met in the lower level meeting room of the Council Chambers, 57 East 1st Street, on November 17, 2015 at 1:30 p.m. MEMBERS PRESENT

MEMBERS ABSENT

STAFF PRESENT

Claudia Walters, Chairperson None John Pombier Pete Lesar Alfred Smith Gary Levine Dee Ann Mickelsen Anne McCawley Bryan Raines

Chairperson Walters stated that if there were any citizens in the audience who wished to address the Commission, she would encourage them to fill out a speaker card and hand it to a staff member, who will forward it on to her.

1. Approval of the minutes of the Independent Commission on Compensation for Elected Officials

meeting held on November 3, 2015. It was moved by Commission Member Lesar, seconded by Commission Member Levine, that

the minutes from the November 3, 2015 meeting be approved. Carried unanimously. 2. Hear a presentation and discuss updated compensation data collected for elected officials of

similarly situated municipalities, by City staff. Senior Human Resources Analyst Linda White stated that at the Commission’s November 3,

2015 meeting, she was asked to compile additional information in an effort to assist the Commission Members in their decision-making process. She noted that she has completed such research and was prepared to present her findings at this time.

Ms. White referenced a document titled “Mayor and Council Salary/Benefits Information.” (See

Attachment 1) She pointed out that one of the items she compiled is a listing of the “Total City Budget Amount” for various municipalities that are similar in size to Mesa.

Ms. White also highlighted a document, which was previously distributed to the Commission Members, and now contains two additional columns as follows: “Process/Factor used to

OFFICE OF THE CITY CLERK

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 2

increase Mayor and Council Salary” and “Expected Salary Increase prior to 2017.” (See Attachment 2) She explained that such information identifies the processes and factors that are taken into consideration by the respective communities as it relates to salary increases for their elected officials. She pointed out that several cities use a multi-pronged approach to determine salaries, such as Consumer Price Index (CPI) data, and whether employees have received pay raises and/or cost of living adjustments (COLAs). Chairperson Walters expressed appreciation to Ms. White for her efforts and hard work in compiling the additional information requested by the Commission Members. Ms. White further reviewed a chart detailing the car allowance and phone allowance for the City’s executive staff; the City-issued iPad and Data Plan; and the Mayor/Council’s estimated personal phone costs. (See Attachment 3) She reported that she recently became aware of the fact that the City issues iPads to the Mayor and Councilmembers, for which they receive an additional $40/month for the associated 4G Data Plan. Ms. White, in addition, remarked that in conducting her research, she learned that none of the cities she contacted use a specific formula to establish a phone allowance for their respective elected officials, but merely select an arbitrary amount that seems reasonable. She noted that staff inquired of the Mayor and Councilmembers regarding their estimated personal cell phone costs. She said that with respect to the Councilmembers, it was determined that such costs average $94.36/month ($1,132.33 annually). She added that staff was unable to obtain data as it relates to the Mayor’s expenses prior to today’s meeting. In response to a question from Commission Member Lesar, Assistant City Manager John Pombier clarified that for those City employees who do not receive a monthly car allowance, but use their personal vehicles for City business, they receive a .59/mile reimbursement, which is the rate set by the Internal Revenue Service (IRS). Chairperson Walters commented that even if a Councilmember receives a monthly car allowance, once he or she travels more than 100 miles to attend a City-related meeting, the person would receive a mileage reimbursement. She explained that the car allowance anticipates use within the region, but not for extended distances. Responding to a question from Commission Member Lesar, Mr. Pombier indicated that the phone allowance for all of the Council-appointed positions is negotiated as a term of their respective contracts with the City Council. He stated that throughout the City, executive level staff receive a car allowance of $80/month, while front line and other staff members receive between $40 and $50/month, depending upon usage. Ms. White continued with her presentation and provided a short synopsis of a document containing CPI information, as well as a historical overview of the Social Security Administration’s COLAs. (See Attachment 4) In response to a question from Commission Member Levine, Ms. White clarified that the $40/month Data Plan allowance that the Councilmembers receive is in addition to the $80/month communications allowance. Chairperson Walters thanked staff for the presentation.

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 3 3. Discuss and provide direction to City staff on the Commission’s recommendation to the City

Council regarding compensation for Mesa’s elected officials and the process for finalizing the report for Council consideration.

Chairperson Walters stated that in anticipation of today’s meeting, she has drafted some

concepts that she would like to share with her fellow Commission Members that might assist in their decision-making process. (See Attachment 5) She commented that she wanted to make it very clear for the record that she has not spoken to Mayor Giles or any of the Councilmembers as it relates to the Commission’s recommendation concerning the matter of compensation for elected officials.

Chairperson Walters remarked that it was important for the Commission Members to be cognizant of the fact that the Mayor and Councilmembers “live in a political world.” She stated that although the Commission Members can discuss “what is right and fair for all of the work” Mesa’s elected officials perform, it does not reflect the political reality of where they live and what they have to vote on. She added that ultimately, it will be necessary for the Mayor and the Councilmembers to vote on the Commission’s recommendation. Responding to a question from Commission Member Levine, Deputy City Attorney Alfred Smith clarified that if the Commission recommends any changes to the elected officials’ compensation, such changes would not go into effect until January 2017 when the newly-elected Councilmembers begin their terms in office. Chairperson Walters noted that her concepts are “a framework for discussion” and include a philosophy that she would like her fellow Commission Members to consider. She suggested that it might be appropriate to move the Councilmembers’ ratio of the Mayor’s salary toward 60% instead of 50%, which could be accomplished gradually over five years. She stated the opinion that such a ratio would reflect the fact that Councilmembers are more than "half time employees.” Chairperson Walters indicated that it was her understanding that when the City Council was first established, the original concept was that the Councilmembers would work approximately ten hours a week, while the Mayor would work an estimated 20 hours per week. She also said that currently, the Councilmembers “work full time and more” and the Mayor “works double full time and more.” Chairperson Walters, in addition, briefly reviewed additional philosophical concepts for the Commission’s consideration as follows: ensure that vehicle and communications allowances are appropriate to cover costs; and have a compensation package that reflects local sensibilities, while expanding the potential pool of individuals who can afford the economic sacrifices involved in public service. Chairperson Walters further commented that in reviewing all of the data provided by staff, filtering out information from other states, and focusing on what Arizona elected officials are earning, in her opinion, the Mayor’s compensation is “probably fairly close to where it should be right now.” She added that none of the Arizona municipalities surveyed anticipate salary increases for their Mayors.

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 4

Chairperson Walters stated that she would propose increasing the base salary for Councilmembers by $3,750 per year as a step toward moving the Mayor/Council ratio toward 60%. She suggested, in addition, increasing the Councilmembers’ communications allowance for cell phones from $80/month to $100/month to more accurately reflect the actual costs that are incurred. Chairperson Walters asked that her fellow Commission Members provide their feedback and input with respect to her proposal. Vice Chairperson Raines remarked that the proposal does not include any adjustments to the Mayor’s compensation. Chairperson Walters confirmed Vice Chairperson Raines’ statement and explained that her proposal reflects political sensibilities. Responding to a question from Commission Member McCawley, Chairperson Walters offered clarification with respect to a prior statement she made as follows: she would propose that by 2017, the Councilmembers’ salary would be increased by $3,750; and she would further recommend that in 2019, such salary would once again be increased in order to reach the Mayor/Council ratio of 60%. She explained that her rationale behind the proposal was that it would be easier for the Councilmembers to vote on such a recommendation if it were accomplished in a two-step process. In response to a question from Vice Chairperson Raines, Mr. Pombier advised that per the ordinance, the Independent Commission on Compensation for Elected Officials is required to meet every two years, at a minimum. Vice Chairperson Raines indicated that in 2017, the Commission would meet again, at which time the members could address the additional increase, per Chairperson Walters’ recommendation, that would take effect in 2019. Commission Member Lesar stated the opinion that the Mayor serves the community in a capacity that is “more than a full time job.” Chairperson Walters clarified that the point she was trying to make was not that the Mayor’s salary is adequate for the job that it entails, but rather that there was a political expediency for the City Council. She noted that per the ordinance, the City Council does not have the ability to decrease the proposed recommendation, but merely to approve it or deny it. Chairperson Walters reiterated that it was important for the Commission Members to take into consideration the political issues that the City Council must address. She stated that in 2013, the previous City Council made a courageous decision to move the Mayor and Councilmembers’ compensation “into the 21st century” in relation to every other city in the Valley. Responding to a question from Commission Member Lesar, Chairperson Walters provided a brief historical overview of the manner in which previous City Councils were reimbursed for car mileage associated with City business, which eventually resulted in the current car allowance. She suggested that a possible alternative to the proposed car allowance might be that the

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 5

Councilmembers could submit their miles for reimbursement. She added that in her opinion, the current car allowance for the Councilmembers “is in the ballpark.” Discussion ensued relative to the process by which City employees receive pay raises. Chairperson Walters noted that her proposal to increase the Councilmembers’ annual base salary by $3,750, which would total approximately $40,500, does not take into account the vehicle allowance and cell phone allowance. Commission Member Levine stated that he would recommend that the proposed salary increase to move the Mayor/Council ratio to 60% occur sooner rather than later. He suggested that it should not take five years in order to achieve that goal. He added that he would prefer to implement the full 60% increase in 2017 or 2018, at the latest. Chairperson Walters clarified that although her recommendation reflects five years, functionally, the 60% ratio would be reached three years from January 2016. Commission Member Levine also expressed support for increasing the Councilmembers’ cell phone allowance from $80/month to $100/month. Commission Member Lesar remarked that the full 60% ratio would equate to approximately $7,295.00 Chairperson Walters commented that she was not opposed to the Councilmembers receiving the full 60% increase. She pointed out, however, that from a philosophical point of view, if the Commission made a recommendation to implement the full salary increase at one time, as opposed to incrementally, some of the Councilmembers might be placed in a position where they would feel compelled to vote against such a recommendation. Additional discussion ensued relative to Commission Member Levine’s preference to recommend the full 60% salary increase in 2017 (i.e., $7,295) and not wait until 2019; that it was the opinion of Chairperson Walters that the City Council could possibly reject such a proposal; that Commission Member Levine subsequently agreed to support Chairperson Walter’s proposal for an incremental salary increase in an effort to alleviate her concerns; and that the Commission could only make a recommendation for a salary increase that goes into effect in January 2017, but not beyond that period of time. Commission Member Lesar agreed with Chairperson Walters’ concept of a philosophical position and concurred that the Councilmembers’ job is “more than half a job.” He stated that in the future, the ratio could possibly fluctuate between 60% and 80% of the Mayor’s salary. Commission Member Lesar further remarked that if the Commission’s recommendation was to increase the Councilmembers’ annual base salary by $3,750, it might be appropriate to include language in the recommendation reflecting that in the next review of the elected officials’ compensation, the Commission Members consider moving the Councilmembers’ salary closer to 60% of the Mayor’s salary. Chairperson Walters indicated that if there were a philosophical agreement contained in the Commission’s recommendation, whoever serves on future Commissions will be apprised of

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 6

today’s philosophical discussion and what the current Commission Members’ thoughts were in that regard. Vice Chairperson Raines expressed support for increasing the annual base salary for the Councilmembers by $3,750; and also increasing the communications allowance for cell phones to $100 in order to reimburse the Councilmembers for the actual costs incurred for such service. He noted that he was comfortable with the Mayor’s compensation remaining at its current level. Responding to a question from Chairperson Walters, Commission Members Lesar, Levine, McCawley and Raines all spoke in support of the Councilmembers’ car allowance remaining at $350/month. It was moved by Commission Member McCawley, to approve Chairperson Walters’ recommendation for certain changes to the Councilmembers’ compensation package as follows: increase the communications allowance for cell phones from $80/month to $100/month; increase the annual base salary for the Councilmembers by $3,750; and that such changes would go into effect in January, 2017. Chairperson Walters clarified that the communications allowance was for the purpose of cell phones only and does not reflect the $40/month allowance provided to the Councilmembers for their City-issued iPad/4G Data Plan. Vice Chairperson Raines seconded the motion. Carried unanimously.

Chairperson Walters stated that it was her understanding of the process that City Manager

Christopher Brady will review the Commission’s recommendation; staff prepares a report, which is brought back to the Commission Members for their approval; after which time, the report is forwarded on to the City Council. She suggested that due to the upcoming holiday season, it might be appropriate for the Commission to meet again in mid-January, 2016.

Commission Member McCawley requested that staff advise the Commission Members as soon

as possible of the meeting date in January to ensure that they can include it on their calendars. 4. Discuss and provide direction to City staff as to what additional information the Commission

may need at a future meeting. Chairperson Walters stated that the Commission did not require any additional information from

staff. 5. Discuss and set dates for upcoming meetings. Chairperson Walters noted that staff will inform the Commission Members of the upcoming

meeting date in January, 2016. 6. Items from citizens present. There were no items from citizens present.

Independent Commission on Compensation for Elected Officials November 17, 2015 Page 7 7. Adjournment. Without objection, the Independent Commission on Compensation for Elected Officials meeting

adjourned at 2:10 p.m. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Independent Commission on Compensation for Elected Officials held on the 17th day of November, 2015. I further certify that the meeting was duly called and held and that a quorum was present.

_________________________________________ DEE ANN MICKELSEN, CITY CLERK

pag (attachments – 5)

Last revision date: 11/10/2015

City Total City Budget Amount Process/Factor used to increase

Mayor and Council Salary

Expected Salary Increase prior

to 2017

Arlington, TX $427,290,097

Salaries are set by Charter and

increases are done through election No

change in salary since 10/1/1980. No

specific data info to report.

No increases proposed at this

time

Aurora, CO $700,000,000

The Charter provides for the possibility

of annual Council and Mayor salary

increases.  Their raises are based on

the amount equal to the cost of living

increase or decrease occurring during

the previous calendar year as

determined by the US Department of

Labor Consumer Price Index for the

region which includes the Denver

metropolitan area of the average

increase or decrease given to all city

employees, whichever is less.

Not providing raises on 1/1/2016

for the calendar year.

Fresno, CA $1,251,867,100 Waiting on Info Waiting on Info

Glendale, AZ $632,000,000

Most current salary was set by Council

Salary Review Commission in 4/11/06.

Waiting on more detailed research info.

No

Kansas City, MO $1,474,941,054

Council votes on salaries for next 4

year term, combination of factors are

used, CPI, consideration of what other

employee groups received, salary

survey data.

No

MAYOR AND COUNCIL SALARY/BENEFITS INFORMATION

Additional Research Info Requested at 11/3/15 Meeting

afantas
Text Box
Independent Commission November 17, 2015 Attachment 1 Page 1 of 3

City Total City Budget Amount Process/Factor used to increase

Mayor and Council Salary

Expected Salary Increase prior

to 2017

Long Beach, CA $2,672,371,463

Charter set Mayor's base salary at

$67,500 in 1988; it is adjusted annually

on July 1 by CPI. Charter sets Council

Member pay at 25% of Mayor's.

Next increase maybe on July 1,

2016

Mesa, AZ $1,610,000,000

Current salary set by Independent

Compensation Commission for Elected

Officials in 11/2013; effective 01/2015

Would not be effective until 2017

Peoria, AZ $511,000,000

Citizens Commission on Salaries for

Elected City Officials. They meet every

other year. Unknown what the increase

was based on.

Unknown at this time.

Phoenix, AZ $3,702,298,000

Citizens’ Commission on Salaries for

Elected City Officials meets every two

years. Various data is used - including

rates of pay of other Mayor and

Councils, increases given to city

employees, and the review of Consumer

Price Index - All Urban Consumers (CPI-

U). It is up to the commission members

to decide what they would like to review.

Salary has not changed since

2005. 2007 recommendation

voted down on ballot. Commission

meeting this year.

Sacramento, CA $951,600,000

Per our City Charter Section 29, an

Independent Compensation

Commission reviews benchmarked

City’s annually and a new resolution is

adopted. Commission reviews

benchmark cities, employee salary

adjustments, current compensation

levels of public members of City Boards

and Commissions.

Won’t know if there will be any

changes until a new resolution for

the increase in 2016 is voted on

and adopted

afantas
Text Box
Independent Commission November 17, 2015 Attachment 1 Page 2 of 3

City Total City Budget Amount Process/Factor used to increase

Mayor and Council Salary

Expected Salary Increase prior

to 2017

San Jose, CA $3,190,000,000

The  Council Salary Setting Commission

makes recommendations to Council for

salary adjustments every two years.

Waiting on more detailed research info.

San Jose's Salary Setting

Commission voted to put an

initiative on a ballot to raise both

Mayor and Council compensation. 

This is currently not scheduled to

be acted upon. If approved, the

new amounts would be $125,000

per year for the Mayor; $92,000 for

members of Council.

Tacoma, WA $3,076,902,560

Citizens Commission on Elected

Salaries added to City Charter 7/15/14.

Commission will begin meeting in 2015.

Effective January 1, 2018 Mayor

$76,000

Council Member $38,000

Also effective January 1, 2018, the

Commission decided to eliminate

the annual 2.75% salary increase

for all future years.

Tempe, AZ $607,500,000

Tempe uses the Employment Cost

Index to determine any increases.  It is

generally done annually at the beginning

of the fiscal year. 

It is possible that they may

receive another increase in July

2016.

Tucson, AZ 1,367,000,000

Citizens' Commission on Public Service

and Compensation determines whether

to make a request of the voters every

other year (on the odd year) whether

Mayor and/or Council should get a pay

raise. An inflation factor was discussed

in the meetings.  However it is not a

mandatory discussion nor is Mayor and

Council pay rates tied to an inflation

rate.

The Commission met 4 times in

2015 and did put an initiative on

the ballot.  It failed this year by a

margin of 60% to 40%

(approximately).  This was the first

attempt for a pay increase since

2007.  In the three prior occasions,

the Committee voted not to put an

initiative on the ballot

Virginia Beach, VA Waiting on Info Waiting on Info Waiting on Info

afantas
Text Box
Independent Commission November 17, 2015 Attachment 1 Page 3 of 3

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s on

1/1

/201

6

for

the

cale

ndar

yea

r.

Fre

sno,

CA

$1,2

51,8

67,1

00

500,

121

$130

,000

.00

$120

,786

.95

$120

,786

.95

$65,

000.

00$6

0,39

3.47

$60,

393.

47 N

o N

o N

o.

Not

in t

heir

retir

emen

t sys

tem

. W

aitin

g on

Info

W

aitin

g on

Info

Gle

ndal

e, A

Z$6

32,0

00,0

00

22

6,72

1 $4

8,00

0.00

---

$48,

000.

00$3

4,00

0.00

---

$34,

900.

00 N

o C

ounc

il M

embe

rs O

nly

$75

mos

-

$900

yr.

Ret

iree

Hea

lth B

enef

its a

re o

ffer

ed t

o

elec

ted

offic

ials

. C

ost/

requ

irem

ents

and

optio

ns a

re t

he s

ame

as t

hose

for

regu

lar

empl

oyee

ret

irees

.

Mos

t cu

rren

t sa

lary

was

set

by

Cou

ncil

Sal

ary

Rev

iew

Com

mis

sion

in 4

/11/

06.

Wai

ting

on c

opy

of r

epor

t fr

om G

lend

ale

No

Kan

sas

City

, M

O$1

,474

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,054

459,

787

$123

,156

.00

$126

,821

.92

$126

,821

.92

$61,

569.

00$6

3,40

1.69

$63,

401.

69 N

o C

ity p

rovi

des

phon

e (n

o ad

ditio

nal

com

p)

Yes

. A

ny r

etire

e ca

n be

par

t of

hea

lth

insu

ranc

e op

tions

, th

ey p

ay t

he fu

ll co

st

(em

ploy

ee a

nd C

ity c

osts

)

Cou

ncil

vote

s on

sal

arie

s fo

r ne

xt 4

year

ter

m,

com

bina

tion

of f

acto

rs a

re

used

, CP

I, c

onsi

dera

tion

of w

hat o

ther

empl

oyee

gro

ups

rece

ived

, sal

ary

surv

ey d

ata.

No

Long

Bea

ch, C

A$2

,672

,371

,463

472,

779

$136

,152

.00

$118

,176

.29

$123

,936

.29

$34,

044.

00$2

9,54

9.28

$35,

309.

28 $

450

mos

- $

5,40

0 yr

$

30 m

os -

$36

0 yr

Yes

. P

rovi

ded

Ope

n E

nrol

lmen

t lin

k

http

://w

ww

.long

beac

h.go

v/hr

/med

ia-

libra

ry/d

ocum

ents

/city

-

empl

oyee

s/em

ploy

ee-b

enef

its/o

pen-

enro

llmen

t-be

nefit

-gui

des/

2015

-city

-of-

long

-bea

ch-r

etire

e-be

nefit

-bro

chur

e---

final

/

Cha

rter

set

May

or's

bas

e sa

lary

at

$67,

500

in 1

988;

it is

adj

uste

d an

nual

ly

on J

uly

1 by

CP

I. C

hart

er s

ets

Cou

ncil

Mem

ber

pay

at 2

5% o

f M

ayor

's.

Nex

t in

crea

se m

aybe

on

July

1,

2016

MA

YO

R A

ND

CO

UN

CIL

SA

LA

RY

/BE

NE

FIT

S IN

FO

RM

AT

ION

Rev

ised

11/

17/2

015

afantas
Text Box
Independent Commission November 17, 2015 Attachment 2 Page 1 of 3

Cit

yT

ota

l Cit

y B

ud

get

Am

ou

nt

Po

p.

An

nu

al M

ayo

r

Sal

ary

An

nu

al M

ayo

r B

ase

Sal

ary

Ad

just

ed

wit

h S

alar

y

Cal

cula

tor*

TO

TA

L

CO

MP

EN

SA

TIO

N

An

nu

al M

ayo

r T

ota

l

Co

mp

ensa

tio

n

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor

and

incl

ud

es v

ehic

le,

ph

on

e, e

xpen

se

allo

wan

ce

An

nu

al

Co

un

cilm

emb

er

Sal

ary

An

nu

al C

ou

nci

l

Bas

e S

alar

y

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor*

TO

TA

L

CO

MP

EN

SA

TIO

N

An

nu

al C

ou

nci

l T

ota

l

Co

mp

ensa

tio

n

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor

and

in

clu

des

veh

icle

, ph

on

e,

exp

ense

allo

wan

ce

Veh

icle

All

ow

ance

per

mo

nth

/yea

r.

All

ow

ance

is

the

sam

e fo

r b

oth

May

or

and

Co

un

cil

un

less

no

ted

bel

ow

Ad

dit

ion

al P

ho

ne,

Co

mm

un

icat

ion

s o

r E

xpen

se

allo

wan

ce p

er m

on

th/y

ear.

All

ow

ance

is t

he

sam

e fo

r b

oth

May

or

and

Co

un

cil

un

less

no

ted

bel

ow

Pro

vid

es R

etir

ee H

ealt

h I

nsu

ran

ce

Op

tio

ns

to e

lect

ed o

ffic

ials

?

Pro

cess

/Fac

tor

use

d t

o i

ncr

ease

May

or

and

Co

un

cil

Sal

ary

Exp

ecte

d S

alar

y In

crea

se p

rio

r

to 2

017

Mes

a, A

Z$1

,610

,000

,000

462,

376

$73,

545.

00--

-$8

1,10

5.00

$36,

832.

00--

-$4

1,99

2.00

May

or

$550

mo

s -

$6,6

00 y

r.

Co

un

cil

$350

mo

s -

$4,2

00

yr.

Rev

ised

11/

4/15

Cel

l p

ho

ne

$80

mo

s -

$960

yr.

Cit

y is

sued

IP

AD

an

d $

40 m

os

-

$480

yea

r fo

r d

ata

for

IPA

D

Cur

rent

sal

ary

set

by I

ndep

ende

nt

Com

pens

atio

n C

omm

issi

on f

or E

lect

ed

Off

icia

ls in

11/

2013

; ef

fect

ive

01/2

015

Wo

uld

no

t b

e ef

fect

ive

un

til

2017

Peo

ria,

AZ

$511

,000

,000

165,

000

$31,

337.

52--

-$3

4,33

7.52

$20,

891.

68--

-$2

6,11

1.68

C

ounc

il =

$27

5 m

os -

$3,

300

yr.

Not

e:

curr

ent

May

or d

oes

not r

ecei

ve a

llow

ance

he

is

prov

ided

a v

ehic

le.

May

or $

250

mos

- $

3,00

0 yr

.

Cou

ncil

$160

mos

- $

1,92

0 yr

. N

o

Citi

zens

Com

mis

sion

on

Sal

arie

s fo

r

Ele

cted

City

Off

icia

ls.

The

y m

eet e

very

othe

r ye

ar.

Unk

now

n w

hat t

he in

crea

se

was

bas

ed o

n.

Unk

now

n at

thi

s tim

e.

Pho

enix

, A

Z$3

,702

,298

,000

1,4

51,9

66

$88,

000.

00--

-$9

4,42

0.00

$61,

600.

00--

-$6

8,02

0.00

$43

5 m

os -

$5,

220

yr.

$100

mos

- $

1,20

0 yr

. H

andl

ed t

hrou

gh t

he S

tate

’s E

OR

P.

Citi

zens

’ Com

mis

sion

on

Sal

arie

s fo

r

Ele

cted

City

Off

icia

ls m

eets

eve

ry t

wo

year

s.

Var

ious

dat

a is

use

d -

incl

udin

g

rate

s of

pay

of

oth

er M

ayor

and

Cou

ncils

, in

crea

ses

give

n to

city

empl

oyee

s, a

nd t

he r

evie

w o

f C

onsu

mer

Pric

e In

dex

- A

ll U

rban

Con

sum

ers

(CP

I-

U)

may

als

o be

incl

uded

it is

up

to t

he

com

mis

sion

mem

bers

to

deci

de w

hat

they

wou

ld li

ke t

o re

view

.

Sal

ary

has

not c

hang

ed s

ince

2005

. 2

007

reco

mm

enda

tion

vote

d do

wn

on b

allo

t. C

omm

issi

on

mee

ting

this

yea

r.

Sac

ram

ento

, CA

$95

1,60

0,00

0

48

5,19

9 $1

20,2

18.0

0$1

04,6

15.9

6$1

18,8

15.9

6$6

3,27

2.00

$55,

060.

48$6

3,56

0.48

May

or $

600

mos

- $

7200

yr.

Cou

ncil

$400

mos

- $

4800

yr.

Tec

h A

llow

ance

: M

ayor

$16

6 m

os

- $2

000

per

year

; C

ounc

il $1

00

mos

- $

1200

per

yea

r E

xpen

se:

May

or $

417m

os

- $5

000

yr.

Cou

ncil

$208

mos

- $

2500

yr.

Ret

iree

bene

fits

for

Ele

cted

Off

icia

ls a

re

the

sam

e as

the

City

em

ploy

ees

(cos

ts

tiere

d by

num

ber

of y

ears

wor

ked)

.

Per

our

City

Cha

rter

Sec

tion

29, a

n

Inde

pend

ent

Com

pens

atio

n

Com

mis

sion

rev

iew

s be

nchm

arke

d

City

’s a

nnua

lly a

nd a

new

res

olut

ion

is

adop

ted.

Com

mis

sion

rev

iew

s

benc

hmar

k ci

ties,

em

ploy

ee s

alar

y

adju

stm

ents

, cu

rren

t co

mpe

nsat

ion

leve

ls o

f pu

blic

mem

bers

of

City

Boa

rds

and

Com

mis

sion

s.

Won

’t kn

ow if

the

re w

ill b

e an

y

chan

ges

until

a n

ew r

esol

utio

n fo

r

the

incr

ease

in 2

016

is v

oted

on

and

adop

ted

San

Jos

e, C

A

$3,1

90,0

00,0

00

96

7,48

7 $1

14,0

00.0

0$8

9,14

9.55

$94,

249.

55$8

1,00

0.00

$63,

343.

10$6

8,44

3.10

$35

0 m

os -

$4,

200

yr.

$75

mos

- $

900

yr.

San

Jos

e do

es n

ot o

ffer

Ret

iree

Hea

lth

Insu

ranc

e to

ele

cted

off

icia

ls.

How

ever

,

if an

ele

cted

off

icia

l was

a C

ity

empl

oyee

, AN

D if

tha

t for

mer

em

ploy

ee

was

in T

ier

1 fo

r re

tirem

ent b

enef

its

AN

D if

the

y ha

d 15

yea

rs o

f se

rvic

e,

only

the

n w

ould

the

y be

elig

ible

for

heal

th in

sura

nce

bene

fits.

The

 Cou

ncil

Sal

ary

Set

ting

Com

mis

sion

mak

es r

ecom

men

datio

ns t

o C

ounc

il fo

r

sala

ry a

djus

tmen

ts e

very

tw

o ye

ars.

San

Jos

e's

Sal

ary

Set

ting

Com

mis

sion

vot

ed to

put

an

initi

ativ

e on

a b

allo

t to

rai

se b

oth

May

or a

nd C

ounc

il co

mpe

nsat

ion.

 

Thi

s is

cur

rent

ly n

ot s

ched

uled

to

be a

cted

upo

n.

If a

ppro

ved,

the

new

am

ount

s w

ould

be

$125

,000

per

year

for

the

May

or;

$92,

000

for

mem

bers

of

Cou

ncil.

afantas
Text Box
Independent Commission November 17, 2015 Attachment 2 Page 2 of 3

Cit

yT

ota

l Cit

y B

ud

get

Am

ou

nt

Po

p.

An

nu

al M

ayo

r

Sal

ary

An

nu

al M

ayo

r B

ase

Sal

ary

Ad

just

ed

wit

h S

alar

y

Cal

cula

tor*

TO

TA

L

CO

MP

EN

SA

TIO

N

An

nu

al M

ayo

r T

ota

l

Co

mp

ensa

tio

n

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor

and

incl

ud

es v

ehic

le,

ph

on

e, e

xpen

se

allo

wan

ce

An

nu

al

Co

un

cilm

emb

er

Sal

ary

An

nu

al C

ou

nci

l

Bas

e S

alar

y

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor*

TO

TA

L

CO

MP

EN

SA

TIO

N

An

nu

al C

ou

nci

l T

ota

l

Co

mp

ensa

tio

n

Ad

just

ed w

ith

Sal

ary

Cal

cula

tor

and

in

clu

des

veh

icle

, ph

on

e,

exp

ense

allo

wan

ce

Veh

icle

All

ow

ance

per

mo

nth

/yea

r.

All

ow

ance

is

the

sam

e fo

r b

oth

May

or

and

Co

un

cil

un

less

no

ted

bel

ow

Ad

dit

ion

al P

ho

ne,

Co

mm

un

icat

ion

s o

r E

xpen

se

allo

wan

ce p

er m

on

th/y

ear.

All

ow

ance

is t

he

sam

e fo

r b

oth

May

or

and

Co

un

cil

un

less

no

ted

bel

ow

Pro

vid

es R

etir

ee H

ealt

h I

nsu

ran

ce

Op

tio

ns

to e

lect

ed o

ffic

ials

?

Pro

cess

/Fac

tor

use

d t

o i

ncr

ease

May

or

and

Co

un

cil

Sal

ary

Exp

ecte

d S

alar

y In

crea

se p

rio

r

to 2

017

Tac

oma,

WA

$3,0

76,9

02,5

60

204,

000

$96,

117.

00$9

2,48

4.93

$99,

084.

96$4

3,57

6.00

$41,

929.

35$4

1,92

9.35

May

or o

nly:

$5

50 m

os -

$6,6

00 y

r. N

o N

o

Citi

zens

Com

mis

sion

on

Ele

cted

Sal

arie

s ad

ded

to C

ity C

hart

er 7

/15/

14.

Com

mis

sion

will

beg

in m

eetin

g in

201

5.

Eff

ectiv

e Ja

nuar

y 1,

201

8

M

ayor

$76,

000

Cou

ncil

Mem

ber

$38,

000

Als

o ef

fect

ive

Janu

ary

1, 2

018,

the

Com

mis

sion

dec

ided

to

elim

inat

e

the

annu

al 2

.75%

sal

ary

incr

ease

for

all f

utur

e ye

ars.

Tem

pe, A

Z $

607,

500,

000

161,

719

$57,

262.

00--

-$5

7,26

2.00

$28,

334.

00--

-$2

8,33

4.00

No

City

will

pay

per

sona

l cel

l pho

ne,

if th

ey c

hoos

e to

hav

e th

eir

phon

e

plan

thr

ough

the

City

(V

eriz

on)

Pla

n.

Yes

. E

ligib

le f

or r

etire

e be

nefit

s if

they

have

8 y

ears

of

cont

inuo

us s

ervi

ce.

If

they

wer

e hi

red

afte

r 20

09,

they

wou

ld

rece

ive

an H

RA

like

reg

ular

em

ploy

ees.

Tem

pe u

ses

the

Em

ploy

men

t Cos

t

Inde

x to

det

erm

ine

any

incr

ease

s. 

It is

gene

rally

don

e an

nual

ly a

t th

e be

ginn

ing

of t

he fi

scal

yea

r. 

It

is p

ossi

ble

that

the

y m

ay

rece

ive

anot

her

incr

ease

in J

uly

2016

.

Tuc

son,

AZ

1,36

7,00

0,00

0

52

4,29

5 $4

2,00

0.00

---

$42,

000.

00$2

4,00

0.00

---

$24,

000.

00 N

o N

o

Yes

, if

elig

ible

for

ret

irem

ent u

nder

EO

RP

/PS

PR

S/T

SR

S t

hey

wou

ld b

e

elig

ible

for

ret

ire in

sura

nce.

M

edic

al is

only

if u

nder

65.

If

the

y ar

e no

t elig

ible

for

one

of t

he r

etire

men

t pen

sion

s th

ey

wou

ldn'

t be

con

side

red

retir

ees

ther

efor

e w

ould

not

be

elig

ible

.

Citi

zens

' Com

mis

sion

on

Pub

lic S

ervi

ce

and

Com

pens

atio

n de

term

ines

whe

ther

to m

ake

a re

ques

t of

the

vot

ers

ever

y

othe

r ye

ar (

on t

he o

dd y

ear)

whe

ther

May

or a

nd/o

r C

ounc

il sh

ould

get

a p

ay

rais

e.

An

infla

tion

fact

or w

as d

iscu

ssed

in t

he m

eetin

gs. 

How

ever

it is

not

 a

man

dato

ry d

iscu

ssio

n no

r is

May

or a

nd

Cou

ncil

pay

rate

s tie

d to

an

infla

tion

rate

.

The

Com

mis

sion

met

4 t

imes

in

2015

and

did

put

an

initi

ativ

e on

the

ballo

t. 

It f

aile

d th

is y

ear

by a

mar

gin

of 6

0% t

o 40

%

(app

roxi

mat

ely)

.  T

his

was

the

firs

t

atte

mpt

for

a p

ay in

crea

se s

ince

2007

.  I

n th

e th

ree

prio

r oc

casi

ons,

the

Com

mitt

ee v

oted

not

to

put a

n

initi

ativ

e on

the

ballo

t

Virg

inia

Bea

ch,

VA

Wai

ting

on In

fo

447,

021

$30,

000.

00$2

9,07

4.79

$29,

074.

79$2

8,00

0.00

$27,

136.

47$2

7,13

6.47

No

No

No

W

aitin

g on

Info

W

aitin

g on

Info

AV

ER

AG

E$7

6,75

5.70

$82,

223.

72$7

6,08

0.74

$39,

864.

65$3

9,56

0.03

$40,

876.

39

Fo

otn

ote

s:

*Th

e co

st o

f li

vin

g c

alcu

lato

r u

sed

fo

r th

is r

epo

rt i

s C

ity

Rat

ing

.co

m (

htt

p:/

/ww

w.c

ityr

atin

g.c

om

/co

sto

fliv

ing

.asp

) w

hic

h i

s m

ain

ly b

ased

on

th

e C

on

sum

er P

rice

Ind

ex (

CP

I) (

pu

bli

shed

by

the

U.S

. B

ure

au o

f L

abo

r S

tati

stic

s):

afantas
Text Box
Independent Commission November 17, 2015 Attachment 2 Page 3 of 3

Titl

eA

llo

wan

ce

All

ow

ance

Am

ou

nt

All

ow

ance

All

ow

ance

Am

ou

nt

Cit

y M

anag

erC

AR

60

0.0

0$

PH

ON

E1

10

.00

$

May

or

CA

R5

50

.00

$

P

HO

NE

80

.00

$

Dep

uty

Cit

y M

anag

er (

1)

CA

R4

50

.00

$

P

HO

NE

80

.00

$

Cit

y A

tto

rney

CA

R

40

0.0

0$

PH

ON

E8

0.0

0$

Cit

y A

ud

ito

rC

AR

4

00

.00

$

P

HO

NE

80

.00

$

Co

un

cilm

em

ber

CA

R3

50

.00

$

P

HO

NE

80

.00

$

Ass

ista

nt

Cit

y M

anag

ers,

Dep

uty

Cit

y M

anag

er (

1),

Dep

t

Dir

ecto

rsC

AR

30

0.0

0$

PH

ON

E

$4

0 /

$5

0/$

80

dep

end

ing

on

usa

ge

May

or

IPA

D/4

g D

ata

pla

n4

0.0

0$

Co

un

cilm

em

ber

IPA

D/4

g D

ata

pla

n4

0.0

0$

Ye

arly

Ave

rage

1,1

32

.33

$

Mo

nth

ly A

vera

ge9

4.3

6$

*No

te:

Do

es n

ot

inclu

de

th

e M

ayo

r's e

xp

en

se

s t

he

y w

ere

un

ava

ilab

le a

t p

rin

tin

g 1

1/1

0/1

5 @

2:0

2p

m

Exe

cuti

ve C

ar a

nd

Ph

on

e A

low

ance

Lis

tin

g 1

1-4

-15

May

or/

Co

un

cil E

stim

ate

d P

ers

on

al P

ho

ne

Co

sts*

Cit

y Is

sue

d IP

AD

an

d D

ata

Allo

wan

ce

afantas
Text Box
Independent Commission November 17, 2015 Attachment 3 Page 1 of 1

Cons

umer

Pric

e In

dex I

nfor

mat

ion

Th

e O

ffice

of M

anag

emen

t and

Bud

get u

ses

the

"Uni

ted

Stat

es-W

este

rn R

egio

n Co

nsum

er P

rice

Inde

x fo

r all

Urb

an C

onsu

mer

s: A

ll Ite

ms,

Reb

ased

: 201

0=10

0" w

hen

fore

cast

ing

othe

r ser

vice

s an

d co

mm

oditi

es.

This

info

rmat

ion

is p

rovi

ded

by th

e U

of A

For

ecas

ting

Proj

ect g

roup

with

info

rmat

ion

from

Glo

bal I

nsig

ht, I

nc.

The

Cons

umer

Pric

e In

dex

(CPI

) is a

way

to m

easu

re th

e ch

ange

s in

the

pric

e of

a g

roup

of g

oods

and

serv

ices

com

mon

ly p

urch

ased

by

hous

ehol

ds fr

om y

ear t

o ye

ar. T

his g

roup

of g

oods

and

serv

ices

is a

lso k

now

n as

a

mar

ket b

aske

t. Th

ere

are

diffe

rent

“m

arke

t bas

ket”

CPI

indi

ces c

alcu

late

d fo

r the

diff

eren

t reg

ions

in th

e U

nite

d St

ates

, be

caus

e of

the

diffe

renc

e of

goo

ds p

urch

ased

in th

ose

regi

ons.

We

use

the

CPI U

rban

Wes

t Ind

ex.

The

wes

t re

gion

cov

ers A

lask

a, A

rizon

a, C

alifo

rnia

, Col

orad

o, H

awai

i, Id

aho,

Mon

tana

, Nev

ada,

New

Mex

ico,

Ore

gon,

U

tah,

Was

hing

ton,

and

Wyo

min

g.

Belo

w is

a li

nk fo

r the

bas

ket t

hat m

akes

up

CPI t

o th

e Bu

reau

of L

abor

Sta

tistic

s:

http

://w

ww

.bls.

gov/

regi

ons/

wes

t/ne

ws-

rele

ase/

cons

umer

pric

eind

ex_w

est.h

tm#t

able

a M

esa

uses

the

perc

ent c

hang

e fro

m 3

rd qu

arte

r of t

he p

revi

ous

year

to th

e 3rd

quar

ter i

ndex

num

ber o

f th

e cu

rrent

yea

r. T

he p

erce

nt in

flatio

n fa

ctor

s fo

r the

per

iod

of F

Y12

/13

thro

ugh

FY23

/24

are:

FY12

/13

2.01

%

FY13

/14

1.59

%

FY14

/15

2.16

%

FY15

/16

1.06

%

FY16

/17

1.85

%

FY17

/18

2.34

%

FY18

/19

2.54

%

FY19

/20

2.41

%

FY20

/21

1.91

%

FY21

/22

2.18

%

FY22

/23

2.64

%

FY23

/24

2.74

%

The

Offi

ce o

f Man

agem

ent a

nd B

udge

t rev

iew

s and

upd

ates

thes

e nu

mbe

rs e

ach

year

as

econ

omic

co

nditi

ons c

hang

e.

Soci

al S

ecur

ity

Adm

inis

trat

ion

- His

tory

of A

utom

atic

Cos

t-O

f-

Livi

ng A

djus

tmen

ts

(htt

ps://

ww

w.so

cial

secu

rity.

gov/

new

s/co

la/a

utom

atic

-col

a.ht

m)

Auto

mat

ic b

enef

it in

crea

ses,

also

kno

wn

as c

ost-

of-li

ving

adj

ustm

ents

or

COLA

s, ha

ve b

een

in

effe

ct s

ince

197

5. T

he 1

975-

82 C

OLA

s w

ere

effe

ctiv

e w

ith S

ocia

l Sec

urity

ben

efits

pay

able

for

June

(rec

eive

d by

ben

efic

iarie

s in

July

) in

each

of t

hose

yea

rs. A

fter

198

2, C

OLA

s ha

ve b

een

effe

ctiv

e w

ith b

enef

its p

ayab

le fo

r D

ecem

ber

(rece

ived

by

bene

ficia

ries

in J

anua

ry).

A

utom

atic

Cos

t-O

f-Li

ving

Adj

ustm

ents

Info

rmat

ion

prov

ided

by

the

Offi

ce o

f Bud

get a

nd M

anag

emen

t O

ther

inf

orm

atio

n:

Cost

-of-L

ivin

g Ad

just

men

ts (F

act s

heet

) Pr

ior C

ost-

Of-L

ivin

g Ad

just

men

ts

His

tory

of A

utom

atic

Cos

t-O

f-Liv

ing

Adju

stm

ents

July

197

5 --

8.0

%

Janu

ary

1997

--

2.9%

Ju

ly 1

976

-- 6

.4%

Ja

nuar

y 19

98 -

- 2.

1%

July

197

7 --

5.9

%

Janu

ary

1999

--

1.3%

Ju

ly 1

978

-- 6

.5%

Ja

nuar

y 20

00 --

2.5

%(1

) Ju

ly 1

979

-- 9

.9%

Ja

nuar

y 20

01 -

- 3.

5%

July

198

0 --

14.

3%

Janu

ary

2002

--

2.6%

Ju

ly 1

981

-- 1

1.2%

Ja

nuar

y 20

03 -

- 1.

4%

July

198

2 --

7.4

%

Janu

ary

2004

--

2.1%

Ja

nuar

y 19

84 -

- 3.

5%

Janu

ary

2005

--

2.7%

Ja

nuar

y 19

85 -

- 3.

5%

Janu

ary

2006

--

4.1%

Ja

nuar

y 19

86 -

- 3.

1%

Janu

ary

2007

--

3.3%

Ja

nuar

y 19

87 -

- 1.

3%

Janu

ary

2008

--

2.3%

Ja

nuar

y 19

88 -

- 4.

2%

Janu

ary

2009

--

5.8%

Ja

nuar

y 19

89 -

- 4.

0%

Janu

ary

2010

--

0.0%

Janu

ary

1990

--

4.7%

Ja

nuar

y 20

11 -

- 0.

0%

Janu

ary

1991

--

5.4%

Ja

nuar

y 20

12 -

- 3.

6%

Janu

ary

1992

--

3.7%

Ja

nuar

y 20

13 -

- 1.

7%

Janu

ary

1993

--

3.0%

Ja

nuar

y 20

14 -

- 1.

5%

Janu

ary

1994

--

2.6%

Ja

nuar

y 20

15 -

- 1.

7%

Janu

ary

1995

--

2.8%

Ja

nuar

y 20

16 -

- 0.

0%

Janu

ary

1996

--

2.6%

(1) T

he C

OLA

for D

ecem

ber 1

999

was

orig

inal

ly d

eter

min

ed a

s 2.

4 pe

rcen

t bas

ed o

n CP

Is

afantas
Text Box
Independent Commission November 17, 2015 Attachment 4 Page 1 of 1
afantas
Text Box
Independent Commission November 17, 2015 Attachment 5 Page 1 of 1

Agenda Item 3

1 | P a g e

REPORT AND RECOMMENDATIONS

TO THE MAYOR AND CITY COUNCIL CITY OF MESA, AZ

Submitted by INDEPENDENT COMMISSION ON COMPENSATION

FOR ELECTED OFFICIALS

January 11, 2016

BACKGROUND On August 20, 2012, the Mesa City Council created the Independent Commission on Compensation for Elected Officials. The purpose of the Commission is to establish a fair and reasonable compensation for Mesa’s elected officials. The Commission is to ensure that the Mayor and City Council are “compensated for their time, and effort on behalf of the City at a level that (1) is reasonable in light of the compensation paid to elected officials in other municipalities in the United States of similar size, (2) will include the costs and expenses necessary to perform their duties, (3) is likely to attract competent and effective people to serve in public office, (4) makes public service possible for every eligible citizen, not just those whose financial status enables them to serve, (5) takes into account the financial circumstances of the City, and (6) is determined by an Independent Commission on Compensation for Elected Officials.” (2-25-1). The Ordinance states that the Commission shall determine the compensation of the Council and the Mayor by comparing the compensation provided to elected officials in similarly situated cities within the United States. (2-25-3(B)) The Commission is to provide a report and recommendation to the Council within ninety (90) days following its initial meeting. “The recommendations of the Commission must be approved or rejected as a whole by the City Council.” (2-25-3(A)). To accomplish its purpose, the Commission held several public meetings, received and reviewed compensation and benefits data from numerous comparable cities across the United States, with particular focus on the State of Arizona. MEMBERS OF THE COMMISSION: The following Mesa residents were appointed to serve on the Independent Commission: Claudia Walters (chairperson), Bryan Raines (vice-chairperson) Gary Levine (reappointment), Pete Lesar, Anne McCawley.

2 | P a g e

INFORMATION PROVIDED AND REVIEWED BY THE COMMISSION:

Based on the request of the past Commission members and additional information as requested by the current Commission, staff provided the following information:

• Summary of the 2012 and 2013 Commission’s report and recommendations to the City Council.

• Data from comparable cities across the United States that included: (1) the annual salaries for the elected officials; (2) benefits provided to the elected officials (e.g., vehicle allowance, communication allowance, medical/dental insurance); (3) retiree health insurance options to elected officials; (4) population; (5) total municipality budget; (6) process/factor used to adjust elected officials’ salaries; (7) any expected salary increases prior to 2017.

• Post-retirement benefits offered to City employees. • Current executive City employees’ vehicle and phone allowance. • Current Mayor and Councilmember iPad and data allowance. • Current Mayor and Councilmember personal cell phone costs. • Consumer Price Index and Social Security Cost of Living Adjustments.

HISTORY OF MESA’S CITY COUNCIL COMPENSATION Since adoption of the Mesa Charter in 1967, the compensation for the Mesa City Council has been adjusted three times. In 1986, the annual salaries were adjusted to $19,200 for Mayor and $9,600 for Councilmember. In 1998, the annual salaries were adjusted to $33,600 for Mayor and $16,800 for Councilmember.1 In 2015, the annual salaries were adjusted to $73,545 for Mayor and $36,832 for Councilmember. The Commission believes that salaries of Mesa’s Mayor and Councilmembers should be commensurate with that of comparable cities, especially those in the State of Arizona. In 2001, the Mayor and Councilmembers began receiving a $150/month vehicle allowance. In 2015, the vehicle allowance was adjusted to $550/month for Mayor and $350/month for Councilmember. Since 2005, the Mayor and Councilmembers have received an $80/month communication allowance, which has not been adjusted since initial adoption. SUMMARY OF COMMISSION DISCUSSIONS:

In November 2015, and January 2016, the Commission met on three occasions to review and discuss the materials provided by City staff and to finalize their recommendations.

1 The Mayor and Council have received cost of living adjustments provided to all City employees.

3 | P a g e

The following is a summary of the Commission discussions:

• The eligibility of elected officials for City retirement health care benefits was discussed. The Commission considered a wide range of options, but ultimately concluded that, based on the City Charter regarding term limits, and a variety of other factors, Mesa’s elected officials are unable to meet the necessary eligibility requirements for a City employee retiree benefits package. *Note: At the onset of this discussion, Chairperson Walters declared a potential conflict of interest and refrained from discussion or voting on the eligibility of elected officials for retiree benefits.

• The Commission discussed the compensation provided to Mesa’s elected officials and those of comparable cities. The data shows that of the Mayors in Arizona, Mesa’s Mayor currently receives an appropriate base salary, second only to Phoenix. After a discussion and analysis of the data, the Commission agreed that the Mayor’s current base salary is appropriate and does not warrant adjustment at this time.

• Taking into account the Councilmember base salary, the data indicates that Mesa is also ranked second to Phoenix in the state. The Commission also discussed the current 50 percent ratio between the Mayor base salary and the Councilmember base salary. The Commission agreed that the ratio should be 60 percent to better reflect the amount of time worked is more than that of a “half-time” employee. The philosophy of the Commission is to incrementally increase the Councilmember base salary to ultimately reach a 60 percent ratio.

• The vehicle allowance for Mayor and Council was considered, and after a review of the vehicle allowances given to the executive staff of the City, the Commission agreed that the current vehicle allowances for Mayor and Council are adequate and do not warrant adjustment at this time.

• The Commission discussed the communication allowance for Mayor and Council. They considered the current average cell phone bill of each Councilmember and agreed that to adequately cover the total cost of the monthly cellular phone service, the allowance should be increased.

RECOMMENDATIONS To accomplish the goals set forth in the Ordinance, and to ensure that Mesa can attract competent and effective leaders to serve as Mayor and Council, the Commission recommends that the Mesa City Council approve the following compensation package for Mesa’s elected officials. Annual Salary: Mayor: $73,545 – (No change) Councilmembers: $40,582 – (Increase of $3,750) It is the current Commission’s stated philosophy to incrementally increase the Councilmember base salary to reach a 60 percent ratio of the Mayor base salary.

4 | P a g e

Vehicle Allowance: The elected officials use their private vehicles to travel throughout the county and should be compensated for this expense. The Commission recommends that the Mayor continue to receive $550/month and Councilmembers continue to receive $350/month as a vehicle allowance. Communication Allowance: The elected officials use their private cell phones for City business and should be compensated for this expense. The Commission recommends that the Mayor and Councilmembers receive $100/month (a $20/month increase) as a communication allowance. City Benefits: The Commission recommends that the Mayor and Councilmembers continue to be eligible for City benefits consistent with those provided to executive level City employees, which may, from time-to-time be amended, as employee benefits are amended. Retiree Benefits: After much consideration, the Commission recommends that a City retiree benefits package not be created for elected officials. CONCLUSION The members of the Independent Compensation Commission feel strongly that Mesa must continue to attract effective leaders for the positions of Mayor and Councilmember. To do so, the City must reasonably compensate its elected officials to ensure that public service is available to all residents. The compensation for Mesa’s elected officials should be commensurate with elected officials in similarly situated cities. The Commission believes that these recommendations will help Mesa move toward this goal, but that additional adjustments should be considered in the future to fully satisfy this goal.

The Commission requests that the City Council adopt the recommendations of this Independent Compensation Commission.

Respectfully submitted this 11th day of January, 2016.

____________________________ Claudia Walters Chairperson