Wednesday, April 2, 2014

Mayor and Council Salaries

Second reading on an ordinance providing for a salary for Council and Mayor is scheduled for the April 17 meeting of Council.    The ordinance returns Council salaries to the level that existed in 2011, $8,500 per year.    The Mayor's salary was $35,000 but I had only accepted $15,000.   The ordinance proposes a Mayor's salary of $15,000.    The total cost for 4 members of Council and the Mayor is $49,000 per year.

As any small businessman would know, the pay is only part of the employer cost.  We have to pay the employer's share of social security and medicare taxes.    Because the Town participates in the South Carolina retirement system, paid elected officials must be included too.   So the Town must pay its share of retirement.   Because the Town participates in the State Health Plan, regulations require that elected officials be offered the same health insurance benefits as other employees.   The Town must pay the employer's share.     Like other employees, elected officials will also have deductions from their paychecks.   The Town has budgeted $36,000 per year to cover those expenses, though our actual expense will depend on whether the elected officials opt for health insurance and their family situation.   State Insurance system regulations require a higher contribution for employee and spouse, and a still higher contribution for employee, spouse, and children.   (Before I became Mayor, there was a major debate in the Town about health insurance for elected officials.   The Town debated whether elected officials were full time or part time.   Apparently, we just missed the regulation that requires coverage for elected officials.)

Back in 2002, when I was on Council, I opposed any salary or benefits for Mayor and Council.   While most municipalities in South Carolina pay elected officials, not all do.   For example, Kiawah and Seabrook have no pay for elected officials.    However, when I was elected Mayor in 2010, I didn't try to get rid of salaries.   The ordinance at the time said that no one had to accept all of their salary, and so I reduced what I accepted to something I considered more reasonable.

State law only allows salary increases for elected officials  after at least two members of Council have stood for reelection.   Our interpretation has always been that there is no compensation--salary or benefits--for the first two years after each of our now four incorporations.   If the Mayor and Council first elected with each new incorporation choose to pass an ordinance providing for salaries for elected officials, then it will apply after the election state law requires after two years.

Councilman Kernodle's very first initiative, in September of 2012, was to propose benefits for all of our employees, including the elected officials and also a salary for Mayor and Council.   By that point, the Town had already applied to rejoin the South Carolina Retirement System and Health Plan.  Our Town Clerk had started that process during her first week of work in August.   However, I explained that these benefits only apply if Council is compensated, and compensation for Council is only possible after two years.   My view was that there was no reason to deal with this issue first thing.   While there was a bit of pushback, in the end, Council was willing to wait.

Now that we are in the process of passing a budget for 2014-2015, if there are to be salaries for elected officials, funds must be included to pay them, along with the mandated benefits   As part of a review of salaries for all of town staff, the Town Administrator looked at salaries for Council and Mayor in other municipalities.   My discussions with members of Council showed strong support for raising salaries compared to what they were in 2011.   My goal then became holding the line on salaries.   I was pleasantly surprised at the budget workshop and at the first reading of the salary ordinance that there was no pushback against this proposal to keep salaries for elected officials the same as they were in 2011.

If you have any questions or concerns, email me at mayorwoolsey@gmail.com or else call 697-7020.

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