AGENDA #2c
TO: W. Calvin Horton, Town Manager
FROM: Pam Eastwood, Human Resources Director
SUBJECT: Information about Council Member Salaries
DATE: April 30, 2003
A Council member requested information on a standardized formula that could be used to adjust salaries annually in a manner similar to the increases of Town staff
There are several formulas which the Council could adopt, using either external or Town-related data:
Using external data: Indices such as changes in the U.S. Consumer Price Index (CPI) could be used as a guide for annual increases in Council salary rates. This is a regularly published index available from the US Bureau of Labor Statistics. The most recent reports show an annual increase of 4.8% in the CPI between July 2001(when these salaries were last changed) and the present. If used, this method would mean that Council salaries would increase from $10,633 to $11,143 and the Mayor from $17,772 to $18,625 for a total increase of $4,933 in the budget.
Using Town of Chapel Hill workforce data: Other formulas which the Council could consider would be to change Council salaries annually by one of the same percentages that Town employees’ salaries are projected to change that year. One of these formulas could be used:
- Pay range adjustment: This would base the change in Council pay on the percentage by which the Manager recommends that pay ranges for Town employees are adjusted. Last year, no change in the ranges were recommended. In the prior year, the range change was 1.5%. Using this method would mean an increase of 1.5%, Council salaries would increase from $10,633 to $10,792 and the Mayor from $17,772 to $18,039 for a total increase of $ 1,539 in the budget.
- Annual merit percentage: Each year the Manager may recommend that employees whose salaries are above the Job Rate receive an average merit increase to provide career advancement and recognition for longer-term Town employees. Last year, this recommendation was 3.78%. In the prior year it was 4.25%. Using this method would mean an increase of 8.03%; Council salaries would increase from $10,633 to $11,486 and the Mayor from $17,772 to $19,199 for a total increase of $8,251 in the budget.
- Cost of increase as a percentage of payroll: An adjustment for Council members could be based on the percentage by which overall Town payroll costs increase each year. Last year the increase was 3.78%, the prior year it was 4.75%. Using this method would mean an increase of 8.53%, Council salaries would increase from $10,633 to $11,536 and the Mayor from $17,772 to $19,288 for a total increase of $ 9,643 in the budget.