 |
AGENDA ITEM REVIEW FORM |
11.
Regular City Council Meeting
- Meeting Date:
- 04/24/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
DISCUSSION AND POSSIBLE ACTION ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2307. A resolution of the Mayor and City Council of the City of San Luis, Arizona, setting the compensation to be paid to City Council Members; establishing an effective date; repealing Resolution No. 1062; repealing any other conflicting provisions; and providing for severability. (Kay Marion Macuil, City Attorney)
Discussion and possible action on any and all matters regarding Resolution No. 2307. A resolution of the Mayor and City Council of the City of San Luis, Arizona, setting the compensation to be paid to City Council Members; establishing an effective date; repealing Resolution No. 1062; repealing any other conflicting provisions; and providing for severability. (Kay Marion Macuil, City Attorney)
SUMMARY:
The Law on Changing City Council Pay
The legal authority for the City Council to change its compensation is found in A.R.S. § 9-232.01 and the San Luis City Code § 2.05.240. The Arizona Constitution Article IV, Part 2 § 17, prohibits individual council members from receiving a change in compensation during their term, except if the city council has two or more members whose respective terms are staggered. The Arizona Supreme Court interpreted the Arizona Constitution's wording to mean that if there are staggered terms, the change in pay will take effect for all once a new council is elected. The reason for the interpretation is that an injustice would happen if those holding the same office, doing similar work, and being equal in authority received different compensation. The San Luis City Council has staggered terms authorized by A.R.S. § 9-232.02, A.R.S. § 9-272, and the San Luis City Code § 2.05.200.
San Luis City Council's Staggered Terms and Compensation Change
The staggered terms for San Luis City Council operate in even-numbered election years, so
(1) the term for the four (4) Council Members elected in 2022 will end in 2026, and
(2) the term for the three (3) City Council Members who will be elected in 2024 will end in 2028.
The pay change may take effect after those elected in 2024 take their oaths of office. If there is such a pay change, those elected in 2022 will still have two (2) years remaining in their term. So that all have the same pay, those elected in 2022 would also get the pay change in the middle of their term.
Summary of Resolution No. 2307
The resolution:
The staff has no recommendation on this item.
The legal authority for the City Council to change its compensation is found in A.R.S. § 9-232.01 and the San Luis City Code § 2.05.240. The Arizona Constitution Article IV, Part 2 § 17, prohibits individual council members from receiving a change in compensation during their term, except if the city council has two or more members whose respective terms are staggered. The Arizona Supreme Court interpreted the Arizona Constitution's wording to mean that if there are staggered terms, the change in pay will take effect for all once a new council is elected. The reason for the interpretation is that an injustice would happen if those holding the same office, doing similar work, and being equal in authority received different compensation. The San Luis City Council has staggered terms authorized by A.R.S. § 9-232.02, A.R.S. § 9-272, and the San Luis City Code § 2.05.200.
San Luis City Council's Staggered Terms and Compensation Change
The staggered terms for San Luis City Council operate in even-numbered election years, so
(1) the term for the four (4) Council Members elected in 2022 will end in 2026, and
(2) the term for the three (3) City Council Members who will be elected in 2024 will end in 2028.
The pay change may take effect after those elected in 2024 take their oaths of office. If there is such a pay change, those elected in 2022 will still have two (2) years remaining in their term. So that all have the same pay, those elected in 2022 would also get the pay change in the middle of their term.
Summary of Resolution No. 2307
The resolution:
- cuts the City Council's pay in half so that the pay rate is:
- $875 per month to the Mayor,
- $650 per month to the Vice Mayor,
- $450 per month to each of the remaining five (5) City Council Members who are not the Mayor or Vice Mayor;
- allows a reduction in pay due to unreasonable absences from Council Meetings as found by a majority vote of the City Council; the reduction would be by a percent commensurate with the percentage of unreasonable absences;
- eliminates health benefits;
- provides for continuation of retirement benefits as is required by law; and
- takes effect on January 11, 2024, or the first day of the City's employee payroll pay period following the date when all three (3) newly-elected or re-elected City Council Members will have taken their oaths of office, whichever date is later.
The staff has no recommendation on this item.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2307 AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Please See the Fiscal Impact Statement
- BUDGETED AMOUNT:
- Please See the Fiscal Impact Statement
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Please See the Fiscal Impact Statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This item would take effect in the fiscal year 2024-2025. The new proposed annual total compensation for the City Council stands at $79,000. Comparatively, the reduction from the previous compensation structure results in a total savings of $164,640 annually. This includes direct savings from lowered salary expenses as well as reduced costs in medical benefits provided to the council members (Health, Dental & Vision).