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AGENDA ITEM REVIEW FORM |
3.B.
Special City Council Meeting
- Meeting Date:
- 03/03/2025
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2358. A resolution of the Mayor and City Council of the City of San Luis, Arizona, eliminating the City Council Members' compensation, health benefits, reimbursement for city-business travel expenses, and cell phone stipend; establishing effective dates; repealing any conflicting provisions; and providing for severability. (Kay Marion Macuil, City Attorney)
SUMMARY:
Council Member Luis Cabrera proposed this item to eliminate the City Council Members' compensation and health, dental, and vision care benefits paid by the city. It also removes reimbursement for city-business travel expenses and the stipend for those who use a personal cell phone for city business.
As of the writing of this Agenda Item, staff are researching the effect of this change on the city's mandated contribution to the Arizona State Retirement System. Therefore, the savings chart might be provided after the agenda is posted.
Under Arizona Constitution Article 4, Part 2, Section 17, the changes to compensation and health care benefits will not take place until those elected to City Council in the 2026 election take their oaths of office. (The Constitutional section is attached). This constitutional provision, as applied to City Councils, is intended to ensure that all City Council Members "doing, in substance, the same work, should at all times receive the same salaries." (See the penultimate paragraph in Arizona Attorney General Opinion No. I 90-135 dated October 22, 1990, attached). Council Members may participate in the health plans and supplemental plans at their own expense.
The Arizona Supreme Court interpreted "compensation" under the Arizona Constitution not to include travel reimbursement. ( Earhart v. Frohmiller, 178 P.2d 436, 438, 65 Ariz. 221, 225 (1947) and Randolph v. Groscost, 989 P.2d 751, 753 195 Ariz. 423, 425 (1999)). Therefore, the removal of the travel reimbursement along with the elimination of the cell phone stipend will take effect after the normal thirty (30) days after passage.
As of the writing of this Agenda Item, staff are researching the effect of this change on the city's mandated contribution to the Arizona State Retirement System. Therefore, the savings chart might be provided after the agenda is posted.
Under Arizona Constitution Article 4, Part 2, Section 17, the changes to compensation and health care benefits will not take place until those elected to City Council in the 2026 election take their oaths of office. (The Constitutional section is attached). This constitutional provision, as applied to City Councils, is intended to ensure that all City Council Members "doing, in substance, the same work, should at all times receive the same salaries." (See the penultimate paragraph in Arizona Attorney General Opinion No. I 90-135 dated October 22, 1990, attached). Council Members may participate in the health plans and supplemental plans at their own expense.
The Arizona Supreme Court interpreted "compensation" under the Arizona Constitution not to include travel reimbursement. ( Earhart v. Frohmiller, 178 P.2d 436, 438, 65 Ariz. 221, 225 (1947) and Randolph v. Groscost, 989 P.2d 751, 753 195 Ariz. 423, 425 (1999)). Therefore, the removal of the travel reimbursement along with the elimination of the cell phone stipend will take effect after the normal thirty (30) days after passage.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2358.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Reduction in Expenses
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
If passed there will be a reduction in costs to the city starting when those elected to City Council in 2026 take their oaths of office, which should not be any later than January 2027. Reimbursement and Stipend costs will be eliminated this year 30 days after passage of Resolution No. 2358.
Attachments
- Resolution No. 2358
- Arizona Constitution Provision
- Ariz AG Opinion
- First Travel Reimbursment Case
- Second Travel Reimbursement Case
- CC - Salary, Benefits, Travel Budget FY26