Anchorage Assembly: Salaries and Emoluments Commission

12:07 PM on July 30th, and let's call the meeting of the Salary and Emoluments Commission to order. If you'll call the roll.

Vice Chair Redmond. Here.

Member Jessen.

Member Northworthy. Here. Member Rieger. Here. It's my understanding that Chair Hayes is excused.

Chair, you have a quorum. Thank you.

Is there a motion to approve the agenda of the— of our meeting?

I'll move to approve the agenda, the draft agenda. And I will second.

Hearing no objection, the agenda is approved. Approval of the minutes of the previous meeting, the meeting of June 16th. I'll approve, um, the minutes as they are presented in the draft in the package for June 16th. He moved to approve the minutes of June 16th. Is there a second?

And I will second. The motion has been made and seconded. Hearing no objections, the minutes are approved.

Are there any disclosures? Anybody have anything they did they weren't supposed to do?

I have nothing. Hearing none, we'll continue to unfinished business, and our unfinished business is compensation of the mayor. So who wants to just start discussion of I would hope that you would start the discussion.

Well, I would like to thank Jasmine— Jessica? Jamie? Jasmine. I know it's a J. I'm so sorry, Jasmine, for pulling the information together on the municipal employees as well as the other mayors throughout the state with the larger cities. I think it's good information to look at.

Um, both were shocking. Um, uh, and then I also, um, I was trying to send you another message, but it turns out I sent it to myself. Uh, it is looking at UAA Chancellor's salary as well as the school district superintendent, and the but it's available online. The UAA Chancellor salary, annual salary currently is $314,648.

School District Superintendent is currently at $250,000 a year.

So there's just a lot of, I think, shocking information there looking at, you know, the municipal workforce, looking at the percentage of increases that they've done over the last 3 years and then currently what they've negotiated. It looks like the smallest increase is 2.3% and the highest is an 8% salary increase. Kind of interesting.

But looking at the other mayors, I was a little bit surprised at where their salaries landed, but also recognizing that they have— some of the government is a little bit different than ours, considering that ASD is somewhat in our, our budgeting. And that is, you know, interesting to see where that salary lands for that superintendent. I shouldn't say that superintendent, the superintendent, and then UAA Chancellor, just because it's another government entity looking at how that is within the city. It was just also a little surprising. So it's a lot to consider.

I do personally, I do think we need to make an adjustment. I think since 2020 or somewhere around there since we last did an increase. And so certainly it's due. And looking at the municipal workforce, the school district, I think the chancellor of UAA is a huge anomaly out there.

I think there's room for us to take a look at where we would, you know, how we want to approach that and look at where that increase may be.

Thank you.

You know, I think that when we last adjusted it, according to the resolutions that I found, I think I agree with Karen. I think it was in 2020 to take effect in 2021.

You know, my, my general default The starting point is that if we, if we don't take action to at least keep up with the price index, that it's tantamount to a salary reduction. If we do greater than the Consumer Price Index, it's, it's an increase. So I tried to take a look at what just keeping up with CPI would be between 2021 and 2027. Of course, we aren't in 2027, but we will be— if we did take action, it would be to take effect for a future elected mayor. So we're really looking at something that kicks in at a future date.

And what— you know, I have some old data that just— I can't remember where I pulled it off, but it was Urban Alaska CPI tables that showed actually surprisingly high CPI in 2 years, 2021 and 2022, which was information that we didn't have in 2020 when we acted on this. And then since then, inflation has been a lot more moderate. It's, it's averaged around 2% a year this year we're in. I think people are thinking there's no way it's going to be as low as 2. So if you take all those and just kind of compound them, keeping up with CPI indicates to me that it would probably be something like a 25% increase.

Uh, in fact You know, I came up with 1.258 by just assuming those 2% numbers that I don't have, and then 3% for the current year. So, you know, I think, you know, seeing how long it's been since we've just adjusted for inflation, I, you know, I guess my starting point would be unless we have reason to think that the position is under, you know, undercompensated compared to what we think is correct, or overcompensated, depending, you know, compared to what we think is the correct number. Just keeping up with CPI would indicate something like a 25 or 26% increase.

Karen. So looking at the municipal workforce in 2023, the executives went up 20%.

So those are basically the positions that are served at the pleasure of the mayor. So I know from my time working at the city, they were— the executives tend to lack, fall behind the unions because 'cause they're negotiated contracts and so forth. But the 20% is a pretty significant increase there, recognizing some of the challenges that they were having. In 2024, you look at police, they gave them a 7.8% increase. It looks like 2025 was pretty much flat, 1.5% for everybody across the board.

And then fire is looking at a, 8% increase, you know, for 2026. So I do think Steve is right. We're really looking at probably somewhere around 25% increase just to kind of get caught up. And then looking at just getting caught up, where does— does just getting caught up put us at where we need to be? Or, you know, because we still got a potentially a year out.

25% Increase, when that would go into effect, and let's see, this— when's the next mayor election? '27. '27, So it would go in effect in '27.

This is '26.

What about though if we didn't make— maybe made it like 20% and then allowed for like Incremental increases, oh, that wouldn't work either because, I mean, the mayor, you can't increase the mayor's salary during the term of the office, so that doesn't work. I was just thinking, you know, my, my whole instinct is that I'm the taxpayer and I have to pay this, but if I want a good executive, if I want a good mayor, I'm going to have to that's— I'm gonna have to pay for it. So I don't know, I'll entertain whatever motion anybody wants to make.

So, you know, when we look at this and make the adjustment for whatever 27 is, is that we kind of bring it up, but it's always really running behind because of when, when somebody is elected, you know, unless we're making the adjustment like right before they're going into office, and we're trying to be proactive to get it done so in the budgeting process for '27, which is coming up here in a couple months, is that something that all can be planned for and addressed.

What about if we made the 20— 25% increase and in that same resolution indicated well, we don't know what inflation is going to be, but at least like a 10% increase over the next X number of years. Um, not, not for the— at least it seemed, but as the next election came, that there would be a 10% increase also. Does that— you know what I'm saying? Like in 2027, it's 25, and then 20 $29,930, it would be a 10% more, or even 5%, something to keep it kind of keeping up a little bit. I was shocked at Wasilla's.

Yeah, I will say though that that's kind of the purpose of the board is to meet the adjustment of the salary rather than—. Let them do it, let them do it, and I'm not going to be here. Yeah, yeah, yeah. So Because then the board would set it for whatever, right? The next, next increase goes from there.

In that case, is there a motion?

Well, before emotion, making a motion, I'd say that, um, we have a— if we make a motion, it's, it's going to trigger another meeting. And so my thought is, my thought is to, to put a number out there and make that number subject to revision if we get more accurate CPA, CPI data, because I don't have anything I probably could have looked it up. I just didn't for this past year or the year before. But I just kind of know from, you know, from just from what you read that it's been in the neighborhood of 2% each of those two years, maybe a little higher. So I'd suggest that we put a number out there and then refine it.

At the next meeting when we actually act on it, if we act on it.

This is a suggestion, but remember, at some point we have to have— we need to have public input, public hearing. And what information do we want to give to them? Do we want to provide that for them? And, and we want to do this prior to the— but during the— so that This happens within the budgeting process of the municipality.

My suggestion would be that we request staff to provide us with CPI numbers, urban Alaska CPI numbers, for the years 2021, '22, '23, '24, '25, and estimated 26, and we could— I think maybe it would be good to actually flag a number that we're contemplating now, unless people think that's not a good idea. But that number is going to get tweaked when we have the actual numbers.

Yeah, this is Karen. I was just asking Jasmine, HR should have that information because they use that for negotiations, so I said she could check and see, because they should have it really readily available because that's part of the negotiation process, or at least it was when I was there.

And I just did a quick thing of 25% would take us up to just— I'm gonna get ballpark about $181,000 or $182,000 is where that would bring up to. I mean, I think it's fine if we wanted to set in motion so that Jasmine could start drafting, or somebody would start drafting and have that salary in, and then we could always make adjustments from there. But otherwise, then we're going to have another meeting, which is all right.

But does that— well, I'm considering the time frame that we have also with what you're suggesting. If we make a motion and have her draft that up When could we have a public hearing on it? We could, if we have a potential figure or that we're considering, then we could, well, maybe that's it. Maybe we want to have a public hearing when we're considering the percentage of increase that we want. We can put that before them and hear what people have to say.

If anything, and then we can— because we— this is the end of July, this is August, so we have September, October, right?

Correct. And then Steve and I go off in October, so I mean, I think it might be pushing it, but maybe we could meet again in a couple of weeks. Um, yeah, through the chair, it doesn't explicitly say in the charter or code that you have to have a public hearing. It just says that you have to afford the public the opportunity to be heard regarding rendering the change, and we've just in the past done a public hearing, so there's no definitive timeline. So we could meet again in a couple of weeks.

So is there other thoughts? Steve, do you have a thought on that? I just want to clarify, let's just say we put out a number motion today, we have more information at the next meeting, and we decide that the correct number is, you know, $1,000 lower, $1,000 higher, I assume it's completely within the public notice framework to make that adjustment without having to have yet another public hearing. Is that a fair assessment?

Through the chair, yeah.

I guess my concern was to make sure we get it within the— as Karen has said, within the budgeting process, and the fact that you have both been involved in it and we don't have to start from scratch.

So is there, is there, is there a motion or to do that?

I've, um, just one last— I think based on the estimated CPIs, I think the number is closer to 183 than 182. I came— I mean, the numbers I outlined came out to $182,913, but I think for a round number, let's suggest $183,000. But once we have the CPI numbers, we can true that up.

Could we just maybe take a 5-minute break? I'm trying to do some math, and then we'll come back. Yes, we will take a 5-minute break.

Karen. Karen. All right, it's just Looking online, assuming that I looked at the right CPIU for this, from 2020 to 2026, because it always looks back, it's a 25.6% increase. So Steve, we were pretty close. So that would take the salary to $180— if we added that percentage on the current salary, excuse me, it takes $182,612.35.

But because I know the SAP system, the rounding issue and so forth, it would actually need to be 182,603.20, just slightly less, or we can go slightly more. But that just brings it to current. So then we have to decide if that's the route we wanna take, or do we wanna do, add an additional, when you look at what they did for the municipal employees, the— for 2026, because, you know, they're estimating for next year as well, is you've got anywhere from— the high is 8% for fire. You've got 4.5% or 4.3% for police and IBEW. You've got 5% for operating engineers and the non-represented employees, 5%.

And then Also public safety, non-reps are 5%, and then you have 3%, 3.3%, and then a couple at 2.5%, and the, and the 2.5% are the executives. So my suggestion would be to also add an additional 2.5% because that just even just brings it up to what they're giving the executives. Potentially. So that would be my suggestion, that we would look at that.

I think, you know, I think that we, we took action last in 2020 knowing that the revised compensation would take effect in 2021. What I can't recall is whether at that time in our minds we were thinking this is already including what we think is going to be the change between 2020 and 2021, in which case it would be consistent to not count 2020 but to count anticipated 2026.

So, you know, I, I'm kind of comfortable with either counting '21 through '27 or '20 through '26. But I don't know if it's consistent to have 7 years of CPI applied to a salary structure that's been in effect for 6 years. I mean, I hear the argument, but it's— it would have to presume a kind of a change in mindset of how we set things back then. You know, I'm sure that— well, I'm not sure. I doubt that that was on the record where we could look it up.

And I don't recall.

I don't believe— I'm just thinking back because I was— had been on about a year at that point, and I don't recall that we added— did anything forward. Because I, I don't think that that has been our— how we've looked at anything in the past when we've looked at other salaries, that we're thinking, okay, let's— thinking where we might add in going forward. It's kind of where it seems to me we're always doing a look back of here's what's happening and trying to, to come current. I can go either way, we can split the difference.

Well, one of you make a motion.

Well, I don't mind pointing it out. I'll move that we instruct staff to adopt a resolution for consideration that revises the mayor's salary to $183,000.

I'm open to anyone who wants to amend that. And I know that it's going to at least be revised to make it consistent with the payroll systems. It's going to be some number that, you know, something that's close to that, but it has to— something that divides out to the exact penny.

Karen?

Could I suggest, Steve, that we do to work that to the system 183.19 and 20 cents?

I'll regard that as a friendly amendment.

The motion's been made, and is there a second? I mean, and yeah, and I will second. Second the amendment, and the amendment's friendly amendment. Is there any objection to that motion? And of course, there's the three— there is no objection.

I would just, as it— as not as part of the motion but instruction to staff, could you have prepared for the meeting the, the, the CPA data that the Muni is using for the years in question?

Including their best estimate of what 2026 is.

I know I intentionally said '26.' They don't know what '26 is, but you definitely won't know what '27 is. Okay.

Does that— is there any other— does that conclude the discussion on the merit salary? Okay. Is there any other unfinished business to come before us?

Through the chair, do you want to discuss a date that you're all available, and then I can loop in him and Member Jessin. Let's—. It might be easier that way, right? Um, any new business?

I guess the new business would be discussing when we will be available for another meeting.

Let's put it this way, when you're not available. No.

Well, I don't have my calendar in front of me, but August is going to be tough. I mean, I'll try, but that's, um, I have to look, I have to look at the specific dates, but especially, um, later August, you know, from the 15th through the 31st, it's going to be pretty tough for making a meeting. For me, I— oh, sorry, Steve, uh, I can just, depending on the, the time of day, is You know, I'm fine with coming in the morning if that's something people can do. First thing in the mornings are typically better for me. I got a lot of stuff midday, but if you can throw some times around there on days, like if you look at maybe not next week, but the week of the 10th, just throw out some different options.

I mean, I don't know how you guys feel about early or later.

In the— once I have a time or date, I can tell whether or not I have any conflicts.

I—. It doesn't matter to me. I'm— I can make myself available.

My preference would be on a— my preference would be on a Tuesday or Thursday, but, but that's But that doesn't— I can adjust it.

Early, early hours are difficult for me to get in in time. I'd say after, you know, 10 or 10:30, it's not so bad.

Okay. Yeah, I was going to say, Pat, I can do Tuesdays and Thursdays. I could make work because those are things on those days that I can actually move around. Um, and yeah, so we want it— do we want it earlier in August? Can we— let's see, do we have— we have to do so what, 7 days public notice?

So we, we couldn't do like next Next week. Do the week of the 10th though.

And could you send out a little thing to see who's— like, the 10th looks good for me, the week of the 10th, but just see what we can find, and then you'll have your calendar at home. Yeah, yeah, I'll be able to, I'll be able to respond to a Doodle poll. I just, um, yeah, yeah, actually it might actually work for even the week leading up to the 10th for me. Well, that's next week. That's right.

Yeah, well, it's just we have to have 7 days notice. Yeah, okay. So, and we need to find out when, if, uh, Kimberly's available, hopefully. So let's, let's do for, for, for the second and third week. When you said the last part of August is harder for you, but still, let's, let's see what we have for the second and third week in August.

And then how are you in September?

Let me check my calendar. Sorry, I know I have some travel, but I don't have these specific dates. And I am going to be doing some traveling in September. I don't have the actual dates in front of me, so hopefully we can do the week of the 10th and then—. Okay, okay, well, we'll aim for within the next couple weeks.

All right, uh, is there any Is there, um, no— any other new business to come before us? I'm not sure it's in the right space for new business, but I think maybe we could follow up. If you could follow up and call, uh, Judy to see if she really is, uh, interested in participating, um, because if not, I, I just think that you're going to need— because if Steve and I go, you don't have anybody filled in, then you will not have a quorum. And so if you need to get an additional member on top of that, just thinking that you might want to be a little proactive on that.

Are there any, uh, is there any public on the phone or to any public participation? Anybody here to make comments? There's— and no one's on the phone. Okay, member comments.

Steve. Well, my comment would be enjoy the rest of the summer. I— and for those, uh, we are, we are making changes in personnel on this commission, so if people are interested, I mean they should make application to the municipality for to participate in the boards and commissions, any of them, but specifically this one. And there are— but there are some specific requirements for this commission. So, all right, uh, I will entertain a motion to adjourn.

I move to adjourn. Okay, hearing no objection, we are adjourned. Thank you.

And if you're in Palmer this weekend, it's the.