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Home My WebLink AboutOrdinance 5548 ORDINANCE NO. 5548 AN ORDINANCE TO REPEAL §31.46 FREEZING ELECTED CITY OFFICIALS' COMPENSATION IF IN EXCESS OF$80,000.00 WHEREAS, on January 20, 2009, the City of Fayetteville (as a part of the Great Recession) faced declining revenues and the likely necessity to cut city expenses; and WHEREAS, the Mayor and City Attorney voluntarily requested and the City Council approved to roll back the Mayor's and City Attorney's salaries to the 2008 level; and WHEREAS, the Mayor and City Attorney requested that their salary and the salary of other elected officials earning more than $80,000.00 be frozen"because of the difficult economic conditions" and because it would be likely necessary to freeze other city employee salaries sometime in 2009; and WHEREAS, Alderman Ferrell proposed an amendment of this proposed ordinance which was approved by the City Council to require annual determinations by the City Council by December 10 "whether the City's financial condition justifies the continuance of this freezing of compensation for elected officials earning in excess of$80,000.00." NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that the financial condition of the City of Fayetteville has improved during the last four years such that it is no longer necessary to continue the four year freeze of the salaries of the Mayor and City Attorney nor the three year freeze of the salary of the District Judge and therefore repeals §31.46 Freezing Elected City Officials' Compensation If In Excess Of$80,000.00 in its entirety. PASSED and APPROVED this 4h day of December, 2012. Page 2 Ordinance No. 5548 APPROVED: ATTEST: By: y By: 7qat, r LIO ELD AN, Mayor SONDRA E. SMITH, City Clerk/Treasurer W'Iffi t t t fill// . G• \T Y ••qS'�� FAYETTEVILLE.�= %s . kA NSP .Al tl utui AGENDA REQUEST 'W14 FOR: COUNCIL MEETING OF DECEMBER 4, 2012 FROM: PAUL BECKER, FINANCE DIRECTOR ORDINANCE OR RESOLUTION TITLE AND SUBJECT: An Ordinance To Repeal §31.46 Freezing Elected City Officials' Compensation If In Excess Of$80,000.00 APPROVED FOR AGENDA: Finance Director Date City Attorney Date hi f.of taff Date ayor ate 11-27-12p03:04 RCVD • -Tay PV� THE CITY OF FAYETTEVtLLE,ARKANSAS (,� DEPARTMENT CORRESPONDENCE ARKANSAS TO: Kit Williams, City Attorney CC: Mayor Lioneld Jordan City Council Members FROM: Paul Becker, Finance Director Q P►qj DATE: November 27, 2012 SUBJECT: Ordinance No. 5214, (Freezing Elected City Officials Compensation of in excess of$80,000) In January of 2009, the City Council chose to freeze Elected Officials compensation for those officials making in excess of$80,000, and the officials affected concurred with that decision. At that time, the City was facing significant revenue declines and the Mayor with the concurrence of the City Council, froze general employee wages as of July 1, 2009. Revenue continued to fall for the rest of 2009 and continued to decline until August of 2010. Since August of 2010, sales taxes have been increasing. Other revenue sources have also been increasing, but to a lesser degree. Because of these revenue increases the Mayor recommended and the Councils' approval that wage increases be given in March of 2012 to General Employees. Because of these improved economic conditions I feel the freezing of Elected Officials is no longer necessary and recommend that Ordinance No. 5214 be rescinded. ille 1 Departmental Correspondence faye Le ARKANSAS • • ' A Kit Williams City Attorney TO: Mayor Jordan Jason B.Kelley Assistant City Attorney City Council CC: Paul Becker, Finance Director FROM: Kit Williams, City Attorney �L DATE: November 27, 2012 RE: Repeal of§31.46 Finance Director Paul Becker has recommended that due to improved economic conditions for the City of Fayetteville §31.46 Freezing Elected City Officials' Compensation If In Excess of$80,000.00 be repealed. Four years ago, the nation and the City of Fayetteville were falling into the deepest recession since the Great Depression. Sales tax revenue was falling with no end in sight. It was obvious that the City would have to tighten its belt dramatically so that budgeted employee raises in 2009 might have to be stopped (which they were for employees expecting raises after July 1, 2009). In light of this likely hardship for city employees, Mayor Jordan and I believed we should rollback the normal, code required compensation increase we had received on January 1, 2009. If all city employees could not receive wage increases in 2009, neither should we. So we asked the City Council to rollback our compensation to what our positions had been paid on January 1, 2008. Mayor Jordan also voluntarily gave up the Mayor's $5,000.00 annual automobile expense payment. Mayor Jordan and I also requested that the salary of all elected officials earning more than $80,000.00 be frozen. This affected Mayor Jordan, District Judge Moore and myself. When we presented this to the City Council, Alderman Bobby Ferrell requested that I draft an amendment to require an annual review (by December 10th) by the City Council to determine "whether the City's financial condition justified the continuation of this freezing of compensation for elected officials earning in excess of $80,000.00." The City Council amended the proposed Ordinance to include this language. I have attached parts of the agenda packet and City Council minutes approving the ordinance for your information. The City Council needs to determine whether the City's financial condition justifies: (1) The repeal of§31.46 Freezing Elected City Officials' Compensation If In Excess Of$80,000.00; (2) Passage of a Resolution pursuant to §31.46 to unfreeze the compensation only for the year 2013; (3) Passage of a Resolution pursuant to §31.46 to continue the freeze of compensation for 2013. I have drafted the Ordinance recommended by Finance Director Paul Becker as well as both Resolutions so that the City Council has full discretion whether or not to unfreeze the compensation for the Mayor, City Attorney and District Judge. I know I speak for Mayor Jordan as well as myself when I affirm to you that it is my honor and pleasure to continue to serve our City and citizens whether it be at the 2008 compensation level or whether the City Council decides to unfreeze our compensation because the economic conditions for Fayetteville have improved. I have asked Budget Director Kevin Springer to determine what percentage increase an unfreezing of our compensation would result in on January 1, 2013. The compensation for the City Clerk, District Judge and myself would increase 3.7% which is "the average percentage pay increase granted to regular full time non-civil service city employees during the previous calendar year (2012)." §31.18, §31.30 and §31.45 of the Fayetteville Code. The increase for Mayor Jordan would be 4.05% which is "5% greater than the average of the salaries of each chief and the department directors reporting to the Mayor." §31.17 of the Fayetteville Code. ORDINANCE NO. AN ORDINANCE TO REPEAL §31.46 FREEZING ELECTED CITY OFFICIALS' COMPENSATION IF IN EXCESS OF $80,000.00 WHEREAS, on January 20, 2009, the City of Fayetteville (as a part of the Great Recession) faced declining revenues and the likely necessity to cut city expenses; and WHEREAS, the Mayor and City Attorney voluntarily requested and the City Council approved to roll back the Mayor's and City Attorney's salaries to the 2008 level; and WHEREAS, the Mayor and City Attorney requested that their salary and the salary of other elected officials earning more than$80,000.00 be frozen "because of the difficult economic conditions" and because it would be likely necessary to freeze other city employee salaries sometime in 2009; and WHEREAS, Alderman Ferrell proposed an amendment of this proposed ordinance which was approved by the City Council to require annual determinations by the City Council by December 10 "whether the City's financial condition justifies the continuance of this freezing of compensation for elected officials earning in excess of$80,000.00." NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that the financial condition of the City of Fayetteville has improved during the last four years such that it is no longer necessary to continue the four year freeze of the salaries of the Mayor and City Attorney nor the three year freeze of the salary of the District Judge and therefore repeals §31.46 Freezing Elected City Officials' Compensation If In Excess Of$80,000.00 in its entirety. PASSED and APPROVED this 4t" day of December, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer RESOLUTION NO. A RESOLUTION TO DETERMINE THAT THE CITY'S FINANCIAL CONDITION JUSTIFIES UNFREEZING THE ELECTED OFFICIALS SALARIES FOR 2013 WHEREAS, on January 20, 2009, the City of Fayetteville (as a part of the Great Recession) faced declining revenues and the likely necessity to cut city expenses; and WHEREAS, the Mayor and City Attorney voluntarily requested and the City Council approved to roll back the Mayor's and City Attorney's salaries to the 2008 level; and WHEREAS, the Mayor and City Attorney requested that their salary and the salary of other elected officials earning more than$80,000.00 be frozen"because of the difficult economic conditions" and because it would be likely necessary to freeze other city employee salaries sometime in 2009; and WHEREAS, Alderman Ferrell proposed an amendment of this proposed ordinance which was approved by the City Council to require annual determinations by the City Council by December 10 "whether the City's financial condition justifies the continuance of this freezing of compensation for elected officials earning in excess of$80,000.00." NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that the financial condition of the City of Fayetteville has improved during the last four years such that it is no longer necessary to continue the four year freeze of the salaries of the Mayor and City Attorney nor the three year freeze of the salary of the District Judge for 2013. PASSED and APPROVED this 4th day of December, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer RESOLUTION NO. A RESOLUTION TO DETERMINE THAT THE CITY'S FINANCIAL CONDITION DOES NOT JUSTIFY UNFREEZING THE ELECTED OFFICIALS SALARIES FOR 2013 WHEREAS, on January 20, 2009, the City of Fayetteville (as a part of the Great Recession) faced declining revenues and the likely necessity to cut city expenses; and WHEREAS, the Mayor and City Attorney voluntarily requested and the City Council approved to roll back the Mayor's and City Attorney's salaries to the 2008 level; and WHEREAS, the Mayor and City Attorney requested that their salary and the salary of other elected officials earning more than $80,000.00 be frozen"because of the difficult economic conditions" and because it would be likely necessary to freeze other city employee salaries sometime in 2009; and WHEREAS, Alderman Ferrell proposed an amendment of this proposed ordinance which was approved by the City Council to require annual determinations by the City Council by December 10 "whether the City's financial condition justifies the continuance of this freezing of compensation for elected officials earning in excess of$80,000.00." NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that the financial condition of the City of Fayetteville has not improved sufficiently during the last four years to justify ending the four year freeze of the salaries of the Mayor and City Attorney nor the three year freeze of the salary of the District Judge for 2013. PASSED and APPROVED this 4th day of December, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer AGENDA REQUEST 11124 M FOR: COUNCIL MEETING OF JANUARY 20, 2009 FROM: HIT WILLIAMS, Fayetteville City Attorney ORDINANCE OR RESOLUTION TITLE AND SUBJECT: An Ordinance To Amend Chapter 31: City Officials By Repealing§31.17(D)And Enacting A New §31.46 Freezing City Officials'Compensation If In Excess Of $80,000.00 APPROVED FOR AGENDA: ti Kit Williams Dat— e City Attorney di Jorda ate Mayor FAYETTEVILLE THE CITY Of FAYETTEWLLE,ARKANSAS KIT WILLIAMS,CITY ATTORNEY DAVID WHITAKER,ASST.CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT T4: City Council T14RU: Lioneld Jordan, MayorA- FROM: Kit Williams, City Atto ey DATE: January 2, 2009 RE: Rollback of Mayor and City Attorney's salary to 2008 levels Mayor Lioneld Jordan has requested that I prepare an ordinance that rolls back the mayor's salary to its 2008 level (negating the annual increase effective January 0 of each year). Mayor Jordan has also requested that his compensation be reduced by an . additional $5,000.00 by repealing §31.17 Mayor's Compensation, subsection D, the "annual automobile allowance of$5,000.00 ...." Because of what appears to be the nation's continuing severe economic problems, I share Mayor Jordan's concerns that the City of Fayetteville will not be immune from what could be a substantial and long term recession. Therefore, I have also agreed to roll back my salary to its 2008 level (negating the normal January 1" percentage increase based upon the average salary increase of all non- uniformed employees). Mayor Jordan will present these ordinances for your review during the first City Council Agenda Meeting in January and will ask that they be approved by the City Council during the following City Council meeting. Mayor Jordan will also present an ordinance which would freeze any elected official's salary once it exceeds $80,000.00 until the economy recovers and city revenues rebound sufficiently to ensure that all city employees can continue to receive normal merit or step raises pursuant to the City Council approved pay plan. I also join Mayor Jordan's request on this issue. ORDINANCE NO. AN ORDINANCE TO AMEND CHAPTER 31: CITY OFFICIALS BY REPEALING §31.17 (D) AND ENACTING 'A NEW §31.46 FREEZING ELECTED CITY OFFICIALS' COMPENSATION IF IN EXCESS OF $80,000.00 WHEREAS, the national economic climate is in a prolonged and severe recession which threatens the City of Fayetteville's revenue stability; and WHEREAS, until the national economy recovers and City of Fayetteville revenue growth rebounds, City Officials earning more than $80,000.00 should receive no further raises based upon the formulas set forth in this Chapter; and WHEREAS, this freezing of those salaries may allow city employees earning less than$80,000.00 to continue to receive merit or step increases to at least partially keep up with inflation; and WHEREAS, Mayor Jordan requests that his salary also be reduced by repealing the $5,000.00 annual automobile allowance established by Ordinance No. 3659 of December 1, 1992. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas, hereby amends Chapter 31: City Officials by repealing §31.17 Mayor's Compensation, subsection (D) in its entirety.