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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 �../ 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 �G [Seal] Mc Attest c' Pa y M enny, To n CI rk V OHAD0 �� 1 • 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 C7 • 2 1 P a g e r �xIn16L�- Q, • 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