To: City Counci

From:  Mayor Ron Gonzales,

Vice-Mayor Pat Dando, Councilmembers Chavez and Cortese

 

Subject: Salary Setting Commission Recommendation                  

 

Date: May 19, 2003

 

RECOMMENDATION

 

  1. Approve the Salary Setting Commission’s recommendations.

 

  1. Defer the implementation of the salary increase for Mayor and Councilmembers (Commission recommendations #1 and #2) to a future date when the City’s financial situation has stabilized.

 

  1. Request the Commission consider methods to regularly review and, if appropriate, increase the car allowance so that in the future the allowance does not fall so dramatically behind cost of living.

 

BACKGROUND

 

We must continue to attract well-qualified people to compete for the privilege of serving as elected officials for the City of San José.  Appropriate salary and benefits are an important piece of this effort.  We appreciate the thoughtful work of the volunteer members of the Salary Setting Commission toward this end and thank the Commissioners for their service.  As Council is aware, the Commission may only convene on these issues once every two years.

 

However, due to the continued uncertainty around our own budget as a result of the economy and the state budget crisis, we are recommending that we defer the implementation of the salary-related items of the Commission’s recommendations.

 

It is important as a Council that we continue to lead by example.  We have already taken important steps, such as the Council’s approval of my budget recommendations in March message to freeze our staff salaries and reduce our own office budgets.  Adoption of our recommendations on Mayor and Council salaries will continue this leadership. 

 

The Commission pointed out that the car allowance for Mayor and Council has not changed in 17 years since it was established in 1986.  The allowance has fallen far behind the actual costs of owning and operating a car because there was no escalator method included that would regular review and increase the appropriate amount.  The Commission’s recommendation to raise the car allowance would bring it in line with what the original amount would have become if there had there been an escalator between two and three percent annually.  When the Commission convenes for its next deliberations in two years, we ask that it study whether or not an escalator may be appropriate in the future. 

 

For the Council’s information, below is a table that shows the car allowance with several different annual escalators.

 

Year

2%

3%

4%

1986

$350

$350

$350

1987

$357

$361

$364

1988

$364

$371

$379

1989

$371

$382

$394

1990

$379

$394

$409

1991

$386

$406

$426

1992

$394

$418

$443

1993

$402

$430

$461

1994

$410

$443

$479

1995

$418

$457

$498

1996

$427

$470

$518

1997

$435

$484

$539

1998

$444

$499

$560

1999

$453

$514

$583

2000

$462

$529

$606

2001

$471

$545

$630

2002

$480

$562

$656

2003

$490

$578

$682

2004

$500

$596

$709

2005

$510

$614

$737

 

When appropriate, the Mayor will bring back to Council a final action to implement the Commission’s recommendation on salaries.

 

 

CORDINATION

 

The memo has been coordinated with the City Attorney and the City Manager.