council compensation/CCC Report 2011
Recommendations of the 2011 Council Compensation Committee Colleen Clay Rachel Hardwick Donna Victoria
June 11, 2012 Background Takoma Park Code, Title 2, Section 2.04.110 sets out a process for periodic review of Council compensation: 2.04.110 Periodic review of council compensation. A. Council Compensation Committee. The Council shall appoint a committee of City residents, every 4 years beginning with calendar year 2007, to serve as the Council Compensation Committee. The Committee shall review the salaries of the Mayor and Councilmembers and make recommendations to the Council whether or not such salaries should be changed. B. Principles of Compensation. The Council Compensation Committee shall apply the following principles to guide its recommendations: 1. The positions of Mayor and Councilmember are part-time and should be treated that way; 2. Full monetary compensation for the Mayor and Councilmembers is not appropriate; 3. It is appropriate to monetarily compensate the Mayor and Councilmembers to some extent for their work; 4. Monetary compensation creates an obligation for the Mayor and Councilmembers to perform their jobs; 5. Monetary compensation provides status to the Mayor and Councilmembers; 6. The Mayor’s salary should be greater than that of Councilmembers; and 7. Compensation for the Mayor and Councilmembers should be comparable to Maryland municipalities of similar size and complexity. C. Effective Date of Council Salary Adjustment. Any change in the salary paid to the Mayor and Councilmembers is adopted prior to the next municipal election and takes effect only as to the next succeeding Mayor and Councilmembers as prescribed in Sections 302(c) and 304(c) of the Municipal Charter. (Ord. 2004-3 (part), 2004) Effective with the Council elected in 2007, the annual salary of the Mayor is $13,000. Councilmembers receive an annual salary of $10,000. On December 12, 2011, the Council appointed three residents to serve on the 2011 Council Compensation Committee. (Resolution
1
2011-65, attached.1) It should be noted two of the three committee members are former members of the Council. The Committee was asked to review the salaries of the Mayor and Councilmembers and to make a recommendation as to whether the salaries should be adjusted. Any change to the salaries must be adopted by a two reading ordinance of the Council, with the salary adjustment taking effect for the Council term beginning in November 2013. Over the six months, the Committee: 1. Reviewed the 2003 and 2007 Council Compensation Committee reports and recommendations; 2. Reviewed the City Charter and Code related to powers and duties of the Mayor and Council and periodic review of council compensation; 3. Reviewed recent compensation survey data from other Maryland municipalities with a particular focus on comparable cities; 4. Surveyed former candidates and Councilmembers on their opinions about compensation; and 5. Surveyed the City Council and Mayor. Candidate and Councilmember Survey The Candidate and Councilmember Survey was made available through community e-mail groups. Residents were able to submit responses electronically. Individuals who were known candidates or former City elected officials were solicited for participation with personal e-mails and calls. The number of survey responses was low. The results are in no way representative of the opinions of city residents as a whole. Thirteen surveys were completed and submitted. Seventy-seven percent of respondents had run for a council position. Twenty-three percent have thought about running, but never have. The Committee reviewed the surveys and a tally of the results. The survey report is attached as Attachment B. Salary Survey The Committee reviewed recent compensation survey data from other Maryland municipalities with a particular focus on cities comparable to Takoma Park. Our research revealed council compensation varies widely, with no clear delineation regarding level of responsibility or complexity of government services offered, beyond the size of the community served. Takoma Park is unique as a medium sized municipality with a high level and variety of service responsibilities. The salary survey is attached as Attachment C. Committee Recommendations 1. The Mayor and Councilmembers should have access to all of the health benefits available to city employees at 50 percent of cost (i.e., the city covers half of the premium and the councilmember covers half of the premium). This is nearly identical to the 2007 Council 1
On March 26, 2012, the Council extended the term of the Council Compensation Committee to June 30, 2012.
2
Compensation Committee Report that stated as its first recommendation “The City Council should explore changes to the current availability of health insurance to City Council Members to make it more affordable for the Members who find the current costs onerous.” Like the 2007 committee, this committee discussed the impact of such compensation on the diversity of the council. This committee identified access to health benefits would facilitate participation from groups outside of those who have typically served on the Council or sought office. Additionally, at the 50 percent rate, it would be a benefit that is targeted to those who do not already enjoy access to health care through another source. 2. The Compensation Committee recommends no increase in salary for the Mayor and Councilmembers. Instead, the committee recommends the City Council follow the lead of other municipalities, and the recommendation of the 2007 Council Compensation Committee, and set an annual increase mechanism to begin in the 2013 election year, set to a measure of the rate of inflation. This is the time to implement this change, as the Council has a year and a half to implement the change prior to the next election. At that point, it will have been six years since the last salary increase.
List of Attachments A - Resolution 20011-65, Establishing the 2011 Council Compensation Committee B - Candidate and Councilmember Survey Results C - Salary Survey Results
3
Attachment A Resolution 20011-65 Establishing the 2011 Council Compensation Committee Introduced by: Councilmember Schultz CITY OF TAKOMA PARK, MARYLAND RESOLUTION 2011‐65 ESTABLISHING A COUNCIL COMPENSATION COMMITTEE AND PROVIDING FOR APPOINTMENT OF MEMBERS WHEREAS, Takoma Park Code, Title 2, Section 2.04.110, provides for the City Council to appoint a committee of City residents every four years, beginning with calendar year 2007, to serve as the Council Compensation Committee; and WHEREAS, the purpose of the Committee is to review the salaries of the Mayor and Councilmembers and make recommendations to the Council whether or not such salaries should be changed; and WHEREAS, Section 2.04.110(B) of the Code directs that the Council Compensation Committee shall apply the following principles to guide its recommendations: 1. The positions of Mayor and Councilmember are part‐time and should be treated that way; 2. Full monetary compensation for the Mayor and Councilmembers is not appropriate; 3. It is appropriate to monetarily compensate the Mayor and Councilmembers to some extent for their work; 4. Monetary compensation creates an obligation for the Mayor and Councilmembers to perform their jobs; 5. Monetary compensation provides status to the Mayor and Councilmembers; 6. The Mayor’s salary should be greater than that of Councilmembers; and 7. Compensation for the Mayor and Councilmembers should be comparable to Maryland municipalities of similar size and complexity; and WHEREAS, any change in the salary paid to the Mayor and Councilmembers shall be adopted prior to the next municipal election and shall take effect only as to the next succeeding Mayor and Councilmembers as prescribed in Sections 302(c) and 304(c) of the City Charter; and WHEREAS, the City Council has selected a number of applicants for appointment to the Committee. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TAKOMA PARK, MARYLAND THAT the following individuals are hereby appointed to serve on the 2011 Council Compensation Committee: 4
Colleen Clay, Ward 2; Rachel Hardwick, Ward 2; and Donna Victoria, Ward 6 BE IT FURTHER RESOLVED THAT the Committee shall review the salaries of the Mayor and Councilmembers and provide a recommendation to the Council as to whether or not any adjustments should be made for the next succeeding Council; and BE IT FURTHER RESOLVED THAT the Committee shall report to the Council with its recommendation by February 24, 2012; and BE IT FURTHER RESOLVED that members’ terms shall expire on February 29, 2012 unless the City Council extends the terms pursuant to an extension of the time for the Council Compensation Committee to complete its work. Adopted this 12th day of December, 2011. Attest:
________________________________ Jessie Carpenter City Clerk
5
Attachment B Candidate and Councilmember Survey The Council Compensation Committee designed and conducted a brief survey of candidates, past councilmembers, and potential candidates online in March 2012. The survey was publicized on a variety of neighborhood and Takoma Park area e-mail groups; individuals who were past members and recent candidates (for whom we could obtain e-mail addresses) received individual e-mail invitations to participate. A total of 13 respondents completed the survey. The breakdown of those that participated was as follows:
Question 1: Which of the following describes you best?
I have thought about running, but never have 23%
I have run but have never served 39%
Current member 8%
Former Mayor or Member 31%
6
Question 2: How important were each of the following considerations when you were thinking about running for office in Takoma Park? Participating in the politics of decision making once in office
92%
Amount of time commitment to serve as Mayor/Councilmember
77%
Effort of campaigning to win office
8%
Acrimony/hostile feedback from constituents
8%
Level of pay for Mayor/Council
Other benefits offered
15%
54% 15%
8% 8% 15%
Availability of retirement benefits
8% 8%
Availability of healthcare benefits
8%
Very Important
8%
30% 46%
8% 8%
31%
23%
61%
15%
69% 85% 92%
Somewhat Important
A little important
Unimportant
It is very evident that survey participants do not value the benefits one would associate with a job (pay, health care, retirement), because they consider Council as a volunteer commitment of benefit to the community. Several caveats are in order, however:
This survey was not an exhaustive one of all potential candidates, and received only 13 responses; It is somewhat self-fulfilling to ask those who have (largely) made a decision to run and/or serve whether the compensation is inadequate, because we are surveying a selfselecting group of residents who have already expressed an interest in serving with the current or past levels of compensation. These are, nonetheless, the responses of a group of committed residents who have a good sense of the function and responsibilities of the Council. 7
Question 3: Do you favor or oppose raising the level of compensation for the Mayor and City Council in Takoma Park now? Strongly favor 8%
Strongly oppose 25%
Somewhat favor 17%
Somewhat oppose 25%
Unsure 25%
8
Question 4: Do you agree or disagree with the following statement: "Increasing the compensation for doing the jobs of Mayor and City Council will increase the quality and the number of candidates willing to run for office in Takoma Park." Strongly agree 8%
Partly agree 17%
Strongly disagree 50% Unsure 8%
Partly disagree 17%
9
Question 5: Do you agree or disagree with the following statement: "Increasing the compensation for doing the jobs of Mayor and City Council will increase the diversity of candidates willing to run for office in Takoma Park."
Strongly agree 17% Strongly disagree 33% Partly agree 8%
Unsure 17%
Partly disagree 25%
10
Attachment C Salary Survey Results Municipality 2011 FY12 FY12 Health Dental Life (County) Population Mayor Council Salary Salary Alexandria 139,966 $30,500 $27,500 87% 87% 1X salary * Bel Air 10,120 $6,000 $4,800 No No No (Harford) Bowie (Prince 56,000 $21,636 $13,636 Yes* Yes* No George’s)
LTC
College Park (Prince George’s) Fairfax Falls Church Frostburg (Allegheny) Gaithersburg (Montgomery)
Retirement Cell Contribution Phone
No
2%
No
No
No
No
No
No
Yes **
30,000
$7,500 $5,000
80%
80%
No
No
No
Yes
22,565 12,332 9,000
$6,500 $4,500 $9,800 $9,200 $3,000 $2,400
80 % No No
No No No
No No No
No No No
No No No
No No No
60,785
$19,500 $16,000 Yes *
Yes*
100K *
Yes
No
Yes
Greenbelt 21,485 $12,000 $10,000 85% (Prince George’s) Mount 8,080 $6,800 $4,800 No Rainier (Prince George’s) Ocean City 8K/300K $30,000 $10,000 PPO (Worcester) 85% Rockville 62,476 $25,750 $20,600 80% (Montgomery) Takoma Park 18,027 $13,000 $10,000 No (Montgomery) Vienna 15,687 $6,000 $5,000 HMO 85%
85%
25K
Yes
5% *
No
No
No
No
No
No
PPO 85% 80%
No
No
Yes
No
No
No
No
2X salary 1.5X salary No
No
No
Yes
No
No
No
No
No
11
Notes
* Effective July 2011
*Official pays full cost ** Mayor only
* Official pays full cost
June 11, 2012 Background Takoma Park Code, Title 2, Section 2.04.110 sets out a process for periodic review of Council compensation: 2.04.110 Periodic review of council compensation. A. Council Compensation Committee. The Council shall appoint a committee of City residents, every 4 years beginning with calendar year 2007, to serve as the Council Compensation Committee. The Committee shall review the salaries of the Mayor and Councilmembers and make recommendations to the Council whether or not such salaries should be changed. B. Principles of Compensation. The Council Compensation Committee shall apply the following principles to guide its recommendations: 1. The positions of Mayor and Councilmember are part-time and should be treated that way; 2. Full monetary compensation for the Mayor and Councilmembers is not appropriate; 3. It is appropriate to monetarily compensate the Mayor and Councilmembers to some extent for their work; 4. Monetary compensation creates an obligation for the Mayor and Councilmembers to perform their jobs; 5. Monetary compensation provides status to the Mayor and Councilmembers; 6. The Mayor’s salary should be greater than that of Councilmembers; and 7. Compensation for the Mayor and Councilmembers should be comparable to Maryland municipalities of similar size and complexity. C. Effective Date of Council Salary Adjustment. Any change in the salary paid to the Mayor and Councilmembers is adopted prior to the next municipal election and takes effect only as to the next succeeding Mayor and Councilmembers as prescribed in Sections 302(c) and 304(c) of the Municipal Charter. (Ord. 2004-3 (part), 2004) Effective with the Council elected in 2007, the annual salary of the Mayor is $13,000. Councilmembers receive an annual salary of $10,000. On December 12, 2011, the Council appointed three residents to serve on the 2011 Council Compensation Committee. (Resolution
1
2011-65, attached.1) It should be noted two of the three committee members are former members of the Council. The Committee was asked to review the salaries of the Mayor and Councilmembers and to make a recommendation as to whether the salaries should be adjusted. Any change to the salaries must be adopted by a two reading ordinance of the Council, with the salary adjustment taking effect for the Council term beginning in November 2013. Over the six months, the Committee: 1. Reviewed the 2003 and 2007 Council Compensation Committee reports and recommendations; 2. Reviewed the City Charter and Code related to powers and duties of the Mayor and Council and periodic review of council compensation; 3. Reviewed recent compensation survey data from other Maryland municipalities with a particular focus on comparable cities; 4. Surveyed former candidates and Councilmembers on their opinions about compensation; and 5. Surveyed the City Council and Mayor. Candidate and Councilmember Survey The Candidate and Councilmember Survey was made available through community e-mail groups. Residents were able to submit responses electronically. Individuals who were known candidates or former City elected officials were solicited for participation with personal e-mails and calls. The number of survey responses was low. The results are in no way representative of the opinions of city residents as a whole. Thirteen surveys were completed and submitted. Seventy-seven percent of respondents had run for a council position. Twenty-three percent have thought about running, but never have. The Committee reviewed the surveys and a tally of the results. The survey report is attached as Attachment B. Salary Survey The Committee reviewed recent compensation survey data from other Maryland municipalities with a particular focus on cities comparable to Takoma Park. Our research revealed council compensation varies widely, with no clear delineation regarding level of responsibility or complexity of government services offered, beyond the size of the community served. Takoma Park is unique as a medium sized municipality with a high level and variety of service responsibilities. The salary survey is attached as Attachment C. Committee Recommendations 1. The Mayor and Councilmembers should have access to all of the health benefits available to city employees at 50 percent of cost (i.e., the city covers half of the premium and the councilmember covers half of the premium). This is nearly identical to the 2007 Council 1
On March 26, 2012, the Council extended the term of the Council Compensation Committee to June 30, 2012.
2
Compensation Committee Report that stated as its first recommendation “The City Council should explore changes to the current availability of health insurance to City Council Members to make it more affordable for the Members who find the current costs onerous.” Like the 2007 committee, this committee discussed the impact of such compensation on the diversity of the council. This committee identified access to health benefits would facilitate participation from groups outside of those who have typically served on the Council or sought office. Additionally, at the 50 percent rate, it would be a benefit that is targeted to those who do not already enjoy access to health care through another source. 2. The Compensation Committee recommends no increase in salary for the Mayor and Councilmembers. Instead, the committee recommends the City Council follow the lead of other municipalities, and the recommendation of the 2007 Council Compensation Committee, and set an annual increase mechanism to begin in the 2013 election year, set to a measure of the rate of inflation. This is the time to implement this change, as the Council has a year and a half to implement the change prior to the next election. At that point, it will have been six years since the last salary increase.
List of Attachments A - Resolution 20011-65, Establishing the 2011 Council Compensation Committee B - Candidate and Councilmember Survey Results C - Salary Survey Results
3
Attachment A Resolution 20011-65 Establishing the 2011 Council Compensation Committee Introduced by: Councilmember Schultz CITY OF TAKOMA PARK, MARYLAND RESOLUTION 2011‐65 ESTABLISHING A COUNCIL COMPENSATION COMMITTEE AND PROVIDING FOR APPOINTMENT OF MEMBERS WHEREAS, Takoma Park Code, Title 2, Section 2.04.110, provides for the City Council to appoint a committee of City residents every four years, beginning with calendar year 2007, to serve as the Council Compensation Committee; and WHEREAS, the purpose of the Committee is to review the salaries of the Mayor and Councilmembers and make recommendations to the Council whether or not such salaries should be changed; and WHEREAS, Section 2.04.110(B) of the Code directs that the Council Compensation Committee shall apply the following principles to guide its recommendations: 1. The positions of Mayor and Councilmember are part‐time and should be treated that way; 2. Full monetary compensation for the Mayor and Councilmembers is not appropriate; 3. It is appropriate to monetarily compensate the Mayor and Councilmembers to some extent for their work; 4. Monetary compensation creates an obligation for the Mayor and Councilmembers to perform their jobs; 5. Monetary compensation provides status to the Mayor and Councilmembers; 6. The Mayor’s salary should be greater than that of Councilmembers; and 7. Compensation for the Mayor and Councilmembers should be comparable to Maryland municipalities of similar size and complexity; and WHEREAS, any change in the salary paid to the Mayor and Councilmembers shall be adopted prior to the next municipal election and shall take effect only as to the next succeeding Mayor and Councilmembers as prescribed in Sections 302(c) and 304(c) of the City Charter; and WHEREAS, the City Council has selected a number of applicants for appointment to the Committee. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TAKOMA PARK, MARYLAND THAT the following individuals are hereby appointed to serve on the 2011 Council Compensation Committee: 4
Colleen Clay, Ward 2; Rachel Hardwick, Ward 2; and Donna Victoria, Ward 6 BE IT FURTHER RESOLVED THAT the Committee shall review the salaries of the Mayor and Councilmembers and provide a recommendation to the Council as to whether or not any adjustments should be made for the next succeeding Council; and BE IT FURTHER RESOLVED THAT the Committee shall report to the Council with its recommendation by February 24, 2012; and BE IT FURTHER RESOLVED that members’ terms shall expire on February 29, 2012 unless the City Council extends the terms pursuant to an extension of the time for the Council Compensation Committee to complete its work. Adopted this 12th day of December, 2011. Attest:
________________________________ Jessie Carpenter City Clerk
5
Attachment B Candidate and Councilmember Survey The Council Compensation Committee designed and conducted a brief survey of candidates, past councilmembers, and potential candidates online in March 2012. The survey was publicized on a variety of neighborhood and Takoma Park area e-mail groups; individuals who were past members and recent candidates (for whom we could obtain e-mail addresses) received individual e-mail invitations to participate. A total of 13 respondents completed the survey. The breakdown of those that participated was as follows:
Question 1: Which of the following describes you best?
I have thought about running, but never have 23%
I have run but have never served 39%
Current member 8%
Former Mayor or Member 31%
6
Question 2: How important were each of the following considerations when you were thinking about running for office in Takoma Park? Participating in the politics of decision making once in office
92%
Amount of time commitment to serve as Mayor/Councilmember
77%
Effort of campaigning to win office
8%
Acrimony/hostile feedback from constituents
8%
Level of pay for Mayor/Council
Other benefits offered
15%
54% 15%
8% 8% 15%
Availability of retirement benefits
8% 8%
Availability of healthcare benefits
8%
Very Important
8%
30% 46%
8% 8%
31%
23%
61%
15%
69% 85% 92%
Somewhat Important
A little important
Unimportant
It is very evident that survey participants do not value the benefits one would associate with a job (pay, health care, retirement), because they consider Council as a volunteer commitment of benefit to the community. Several caveats are in order, however:
This survey was not an exhaustive one of all potential candidates, and received only 13 responses; It is somewhat self-fulfilling to ask those who have (largely) made a decision to run and/or serve whether the compensation is inadequate, because we are surveying a selfselecting group of residents who have already expressed an interest in serving with the current or past levels of compensation. These are, nonetheless, the responses of a group of committed residents who have a good sense of the function and responsibilities of the Council. 7
Question 3: Do you favor or oppose raising the level of compensation for the Mayor and City Council in Takoma Park now? Strongly favor 8%
Strongly oppose 25%
Somewhat favor 17%
Somewhat oppose 25%
Unsure 25%
8
Question 4: Do you agree or disagree with the following statement: "Increasing the compensation for doing the jobs of Mayor and City Council will increase the quality and the number of candidates willing to run for office in Takoma Park." Strongly agree 8%
Partly agree 17%
Strongly disagree 50% Unsure 8%
Partly disagree 17%
9
Question 5: Do you agree or disagree with the following statement: "Increasing the compensation for doing the jobs of Mayor and City Council will increase the diversity of candidates willing to run for office in Takoma Park."
Strongly agree 17% Strongly disagree 33% Partly agree 8%
Unsure 17%
Partly disagree 25%
10
Attachment C Salary Survey Results Municipality 2011 FY12 FY12 Health Dental Life (County) Population Mayor Council Salary Salary Alexandria 139,966 $30,500 $27,500 87% 87% 1X salary * Bel Air 10,120 $6,000 $4,800 No No No (Harford) Bowie (Prince 56,000 $21,636 $13,636 Yes* Yes* No George’s)
LTC
College Park (Prince George’s) Fairfax Falls Church Frostburg (Allegheny) Gaithersburg (Montgomery)
Retirement Cell Contribution Phone
No
2%
No
No
No
No
No
No
Yes **
30,000
$7,500 $5,000
80%
80%
No
No
No
Yes
22,565 12,332 9,000
$6,500 $4,500 $9,800 $9,200 $3,000 $2,400
80 % No No
No No No
No No No
No No No
No No No
No No No
60,785
$19,500 $16,000 Yes *
Yes*
100K *
Yes
No
Yes
Greenbelt 21,485 $12,000 $10,000 85% (Prince George’s) Mount 8,080 $6,800 $4,800 No Rainier (Prince George’s) Ocean City 8K/300K $30,000 $10,000 PPO (Worcester) 85% Rockville 62,476 $25,750 $20,600 80% (Montgomery) Takoma Park 18,027 $13,000 $10,000 No (Montgomery) Vienna 15,687 $6,000 $5,000 HMO 85%
85%
25K
Yes
5% *
No
No
No
No
No
No
PPO 85% 80%
No
No
Yes
No
No
No
No
2X salary 1.5X salary No
No
No
Yes
No
No
No
No
No
11
Notes
* Effective July 2011
*Official pays full cost ** Mayor only
* Official pays full cost
