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HomeMy WebLinkAboutFIN 2022-08-08 Item 1B - Discussion - City Council CompensationCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Laurel Humphrey, Legislative Analyst DATE: August 1, 2022 SUBJECT: City Council Compensation ISSUE Staff is seeking Council direction on Councilmember compensation for the years 2023 and beyond. BACKGROUND City Council compensation is adopted by ordinance and codified at Tukwila Municipal Code 2.05, which currently expires at the end of 2023. The Washington State Constitution prohibits any salary increase or decrease during the term of office for officials who set their own salary, so the earliest compensation could be adjusted for any City Council position is 2024. TMC 2.05 provides that if "at any time the Tukwila City Council compensation rate of increase falls significantly below the cost -of -living increase," it will be re-evaluated and possibly adjusted. The current compensation of $1250 per month for all positions has been in place since 2014. The inflation rate per the Seattle -Tacoma -Bellevue CPI -U has increased $31.91 in that time (June to June). Council Compensation since 2002 15 Positions 1,3,5,7 Positions 2,4,6 2002 900 665 2003 950 685 2004 1000 1000 2005 1050 1050 2006 1050 1050 2007 1050 1050 2008 1050 1050 2009 1050 1050 2010 1050 1050 2011 1050 1050 2012 1050 1050 2013 1050 1050 2014 1250 1050 2015 1250 1050 2016 1250 1250 2017 1250 1250 15 INFORMATIONAL MEMO Page 2 2018 1250 1250 2019 1250 1250 2020 1250 1250 2021 1250 1250 2022 1250 1250 Retirement Plan Per WAC 415-108-570, in order to earn service credit in a state retirement plan, elected officials must earn at least 90 times the state minimum wage each month. The current Council compensation rate of $1250 per month has fallen behind. With the increase in the state minimum wage to $14.49 per hour in 2022, Councilmembers must earn at least $1304.10 per month to earn service credit. Proposal Staff suggests that the City Council consider a modest increase to its compensation for four reasons: 1) To reflect that the cost of living has significantly increased since 2014 2) To more reasonably reflect the time and effort involved in serving as a Councilmember 3) To help encourage diverse members of the Tukwila community to pursue elected office 4) To resume earning service credits for those participating in a state retirement plan The table below suggests a monthly increase of $200 per month beginning in 2024 for positions 2, 4 and 6, and in 2026 for positions 1, 3, 5 and 7. This represents a 16% increase, roughly half of the actual cost of living increase since the current compensation was adopted in 2014. RECOMMENDATION Staff is seeking Committee discussion and direction on compensation past the year 2023. The earliest any position could be adjusted is 2024. The Council's direction will be incorporated into the draft biennial budget and an ordinance will be prepared for presentation to the full Council. 16 Positions 1, 3, 5, 7 Positions 2, 4, 6 Year Term Ends: 12/31/25 Term Ends: 12/31/23 2023 1250 1250 2024 1250 1450 2025 1250 1450 2026 1450 1450 2027 1450 1450 2028 1450 1450 RECOMMENDATION Staff is seeking Committee discussion and direction on compensation past the year 2023. The earliest any position could be adjusted is 2024. The Council's direction will be incorporated into the draft biennial budget and an ordinance will be prepared for presentation to the full Council. 16