TC Res. No. 2011-02 Resolution voluntarily reduce town council salariesTOWN OF AVON
RESOLUTION NO. 11 -02
SERIES OF 2011
RESOLUTION AGREEING TO VOLUNTARILY REDUCE TOWN COUNCIL SALARIES
WHEREAS, the Town of Avon is experiencing significant reductions in projected revenues and has
implemented budget reductions and reduction of expenditures, including a program to reduce
employee salaries; and,
WHEREAS, the members of the Town Council desire to participate proportionately in the reduction of
salaries and contribute to the reduction of expenditures for the Town of Avon; and,
WHEREAS, Section 2.04.010 of the Avon Municipal Code establishes salaries for the Mayor, Mayor Pro-
Tern and all other Council Members; and,
WHEREAS, Section 11, Article XII of the Colorado Constitution prohibits the decrease of salary for any
elected officer during the term of office for which that officer was elected;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON that the Town
Council Members, individually, may voluntarily elect to participate in the town wide budget reduction
program by donating a portion of their salary back to the Town of Avon provided that any such donation
is voluntary.
ACCEPTED, APPROVED AND ADOPTED THIS 11TH DAY OF JANUARY 2011.
AVON TOWN COUNCIL
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By: By:
Rich Carroll, Mayor kristi Ferraro, Mayor Pro -Tem
By: abse.til " By:
Dave an s, uncil Member Chris Evans, Council\Member
By: i By: IAI
Todd GouldAg, Council Member r Amy hillips, Council Member
uz eynolds, Council Mem IeY'IOWN
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[Seal]
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Pa y M enny, To n CI rk V OHAD0 ��
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Memo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
Legal Review: Eric Heil, Town Attorney
From: Patty McKenny, ATM Management Services Q�
Date: January 5, 2011
Re: Resolution No. 11-02 Resolution Agreeing to Voluntarily Reduce Town Council Salaries
Summary:
The Town Council is asked to consider Resolution No. 11 -02, a resolution agreeing to voluntarily reduce Town
Council salaries. This was raised in light of the fact that there are new members on the Town Council and
there should be an opportunity to discuss and adopt another resolution that would keep the option open to
council members in 2011. It should be noted that the program has been in effect since April 2009.
Previous Council Action:
The Town Council adopted Resolution No. 09 -15 on April 28, 2009 which approved this salary reduction at the
same time full time employees were beginning to participate in the furlough program. In May 2010, there
was a 2% reduction for all employees, both full time and part-time. Having adopted the resolution gave
council members the option to donate back some of their salaries in both 2009 and 2010.
Background:
•Due to the economy and other revenue challenges presented by the Village at Avon, the Town has
dramatically reduced its expenditures over the last few years. Numerous personnel cost saving measures
were implemented as described in the 2011 budget presentation, such as salary reductions, furloughs, job
sharing etc. The attached memo dated 4/18/09 submitted by the Town Attorney describes the legal issues
associated with reducing salaries for elected officials. In summary, the memo describes that legally an elected
official's salary is not reduced, but rather the program would include that the elected official would voluntarily
donate back part of its salary. By approving the 2009 resolution, the Town Council decided to actively
participate in helping reduce overall expenditures by reducing their salaries as follows:
✓ Salary reduction of 3% based on the furlough program which began May 2009 until year end 2010.
✓ Salary reduction of 2% based on the town wide salary reduction program which began May 2010
until year end 2010.
Discussion:
To try to summarize how the reductions were estimated, please refer to the following table as it shows
a) annual salary by position, i.e. Mayor, Mayor Pro Tem, Council member, and b) number that reflects a
combined furlough & salary reduction of salary at 5 %.
2% Salary Reduction
Mayor Pro
Town
Plus
3% Furlough Reduction
Mayor
Tern
Council
= 5% total reduction
(1)
(1)
(5)
a. annual salary
12,000
9,000
6,000
b. 5% reduction
600
450
300
• revised salary
11,400
8,550
5,700
• Financial Implications:
Currently the town council salary budget is $51K; the savings from the salary reduction program, if all
members participated, is estimated at $2,550. The Town Council could elect to modify the program as well.
As the town's financial picture improves, these personnel programs will be reevaluated and hopefully
eliminated at that time.
Town Manager Comments:
Attachments:
✓ Exhibit A: Town Attorney Memo dated April 18, 2009: Reduction of Town Council Salaried
✓ Exhibit B: Resolution No. 11 -02, Resolution Agreeing to Voluntarily Reduce Town Council Salaries
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WIDNER MICH.OW & COX -
ATTORNEYS AT LAW
MEMORANDUM
TO: Honorable Mayor Wolfe and Town Council Members
CC: Larry Brooks, Town Manager; Patty McKenny, Town Clerk
FROM:" Eric Heil, Town Attorney
DATE: April 18, 2009
SUBJECT: Reduction of Town Council Salaries
Summary: Town Council desires to consider a reduction in the salaries for Town Council
Members which is commensurate with the reduction in salaries to be implemented in May,
2009, as part of a budget reduction program. This memorandum discusses legal issues
associated with reducing salaries for elected officials.
Legal Analysis: Section 2.04.010 of the Avon Municipal Code establishes compensation for
the Mayor, Mayor Pro Tern and all other Council Members. Although the municipal code usually
may be amended by the adoption of an ordinance, the Colorado Constitution prohibits salary
increases or decreases for elected officials during the term of such office. Section 11 of Article
XII, Colorado Constitution states in part,
• "No law shall extend the term of any elected public officer after his election or
appointment nor shall the salary of any elected public officer be increased or
decreased during the term of office for which he was elected."
The prohibition against modifying an elected public officer's salary during his term of office is
intended to deter the appropriative body from influencing a public officer by threat or promise of
salary change, and to discourage the officer from himself seeking increased compensation.
Tisdel v. Bd. of County Commis, 621 P.2d 1357 (Colo. 1980); Lancaster v. Bd. of Com'rs of
Jefferson County, 171 P.2d 987 (1946). The Town Council may not adopt an ordinance that
decreases the salary of Town Council Members during the current term of each Council
Member.
Town Council may adopt a resolution declaring that individual Town Council Member may
voluntarily elect to donate a portion of their salary back to the Town in order to participate in the
Town wide salary and budget reduction program. Resolution No. 09 -15 Voluntary
Reduction of Council Member Salaries is presented for consideration by Town Council.
Please note that Resolution No. 09 -15 includes signature lines for all Town Council Members
which serves both as a statement of unanimous support as well as an affirmation by each
Council Member that any donation of salary received back to the Town is a voluntary choice by
each individual Council Member. The passage of Resolution No. 09 -15 would not reduce
Town Council salaries nor would it create any legal obligation by any Town Council Member to
rebate, forego or reduce the salary they current receive pursuant to Chapter 2.04 of the Avon
Municipal Code.
Proposed Motion: "I move to approve Resolution No. 09 -15 Voluntary Reduction of Council
Member Salaries."
• Widner Michow & COX LLP Eric Heil, Esq., A.I.C.P.
13133 East Arapahoe Road, Suite 100 Direct Tel 303.754.3392
Centennial, CO 80112 eheil@wmcattorneys.com
is
TOWN OF AVON
RESOLUTION NO. 11 -02
SERIES OF 2011
RESOLUTION AGREEING TO VOLUNTARILY REDUCE TOWN COUNCIL SALARIES
WHEREAS, the Town of Avon is experiencing significant reductions in projected revenues and has
implemented budget reductions and reduction of expenditures, including a program to reduce
employee salaries; and,
WHEREAS, the members of the Town Council desire to participate proportionately in the reduction of
salaries and contribute to the reduction of expenditures for the Town of Avon; and,
WHEREAS, Section 2.04.010 of the Avon Municipal Code establishes salaries for the Mayor, Mayor Pro-
Tern and all other Council Members; and,
WHEREAS, Section 11, Article XII of the Colorado Constitution prohibits the decrease of salary for any
elected officer during the term of office for which that officer was elected;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON that the Town
Council Members, individually, may voluntarily elect to participate in the town wide budget reduction
program by donating a portion of their salary back to the Town of Avon provided that any such donation
is voluntary.
ACCEPTED, APPROVED AND ADOPTED THIS 11TH DAY OF JANUARY 2011.
AVON TOWN COUNCIL
By:_
By:_
By:_
By:_
[Seal]
• Attest:
Rich Carroll, Mayor
Dave Dantas, Council Member
Todd Goulding, Council Member
Buz Reynolds, Council Member
Patty McKenny, Town Clerk
By:
By:
By:
Kristi Ferraro, Mayor Pro -Tem
Chris Evans, Council Member
Amy Phillips, Council Member