AGENDA ITEM 1
&
7 A
October 22,2013
Public Hearing/Action
MEMORANDUM
TO:
FROM:
County Council
ft
Josh Hamlin, Legislative Attorne
Robert H. Dnnnmer, Senior Legis alive
SUBJECT:
Attorne~
Public Hearing!Action:
Bill 28-13, Elected Officials - Compensation
Bill 28-13, Elected Officials - Compensation, sponsored by the Council President at the
request of the Committee to Study the Compensation of the County Executive, County Council,
Sheriff, and State's Attorney (Committee), was introduced on October 1. Action is tentatively
scheduled following the public hearing.
Bill 28-13, as introduced, reflects the recommendations of the Committee, and would
increase the compensation of the County Executive and County CounciL The Committee did not
recommend increases to the compensation of the Sheriff and State's Attorney beyond annual
cost-of-living adjustments. The Council will consider whether to accept or modify any of the
changes recommended by the Committee after the scheduled public hearing.
In the third year of its term of office, consistent with past practice, the Council
established the Committee by Resolution No. 17-563 on October 16, 2012. The Council is
authorized to set the compensation for Councilmembers and the Executive by Charter Sections
107 and 204. State law authorizes the Council to set the compensation for the Sheriff and the
State's Attorney. Article III, Section 35 of the Maryland Constitution prohibits an increase or
decrease in the salary of these elected officials during their term of office. The Council
appointed 7 volunteer residents to the Committee by Resolution No. 17-686 on February 26,
2013. The Committee studied this matter for 7 months and issued a final report in September
2013.
1
Bill 28-13 would make the following changes:
County Executive:
Increase salary to $190,000 beginning on December 1, 2014 and, for
the remaining three years, by the CPI increase,2 if any. With the recommended salary of
I
A copy of the report is available at:
compensation committee
re!!Q.!1JLQr
The annual average percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the
Washington-Baltimore Metropolitan Area, or any successor index, for the 12 months preceding September I of that
year.
2
ht!:J?:II~v\'iJ!.6.111011tgolllgyc...9l1nt'ym(lgg.v/contel1t1coLlncil/12QJl.!TI!.9rts!20
13
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$190,000 at the start of the next term, the Committee projected the following salary
estimates for the next four years:
3
Previously
approved
(Bill 36-09)
12/2/2013
(2.28%)
$184,360
!
Current
(effective
12/3/12)
$180,250
12/1/2014
(2.35%)
$190,000
12/7/2015
(2.45%)
$194,655
12/5/2016
(3.0%)
$200,495
12/4/2017
(3.3%)
$207,111
Councilmembers: Increase salary to $125,000 beginning on December 1,2014 and, for
the remaining three years, by the CPI increase,4 if any. With the recommended salary of
$125,000 at the start of the next term, the Committee projected the following salary
estimates for the next four years:
5
Previously
approved
(Bill 36­
09)
12/2/2013
(2.28%)
$106,394
$117,034
Councilmembers
Council
President
6
Current
(effective
12/3/12)
$104,022
$114,425
12/1/2014
(2.35%)
$125,000
$137,500
12/7/2015
12/5/2016
(2.45%)
~%)
$128,063
905
$140,869
$145,095
12/4/2017
(3.3%)
$136,258
$149,883
The Committee recommended retaining the eXIstmg Code provlSlons governing the
compensation of the Sheriff and the State's Attorney. Under these provisions, the compensation
of the Sheriff and the State's Attorney will be adjusted as follows:
Sheriff: Increase salary in each year of the next term, beginning on December 1, 2014,
by the CPI increase,7 if any. The Committee projected the following salary estimates for
the next four years:
8
Salary projections for December 2013, 2015, 2016 and 2017 are estimates and are based on the County Finance
Department's projections for the change in the CPI-U for those years .
.!.illn;,l!rnontgomerycour\1Y.md. gQ.Y.!O M
B/R.~_Q!lI<;.~§{f
i
Ics/ornb/pdfsifv 14/psm:ec/psp-revenLie. pdt: page 5-4
4
See
note 2.
'See
note 3.
6
The Council President currently receives 10% more than the other Councilmembers. The Committee
recommended that the Council President continue to receive the 10% differential.
7See
note 2.
8See
note 3.
3
2
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Current
(effective
12/3/12)
$154,000
Previously
approved
(Bill 36-09)
121212013
(2.28%)
$157,234
121112014
(2.35%)
1217/2015
(2.45%)
1215/2016
(3.0%)
121412017
(3.3%)
$160,929
$164,872
$169,818
$175,422
State's Attorney:
Increase salary in each year beginning on January 5, 2015, through
2018, by the CPI increase,
9
if any. The Committee projected the following salary
estimates through 2018:
10
Previously
approved
(Bill 36-09)
116/2014
(2.28%)
$203,537
Current
Term
(effective
117/13)
$199,000
115/2015
(2.35%)
114/2016
(2.45%)
112/2017
(3.0%)
112/2018
(3.3%)
$208,320
$213,423
$219,825
$227,079
The Committee did not recommend changes in the current benefit packages for any of
these elected positions.
The Committee determined that the salary of a Councilmember "now is, and has been,
deficient relative to the responsibilities and demands of the job and the leadership skills
required," and that it "lags behind that of each of the other elected positions reviewed by the
Committee."
The Committee recognized the "extraordinarily broad" scope of a
Councilmember's work and the fact that a Councilmember has a "2417-style workload" and
"more than 40-hour workweek." Additionally, the Committee noted that, in recent review
cycles, "the salaries of the County Executive, the Sheriff, and the State's Attorney were adjusted
to levels that are more appropriate for their duties and responsibilities," while there was no such
"catch-up" adjustment for the Councilmember salary.
See
©6. The recommendation of the
Committee would allow the Councilmember salary "to match, in relative terms, significant
increases in other elective positions in the past compensation review cycles," and would "more
accurately reflect the scope, complexity, and leadership responsibilities of the job and the values
and the demands placed on the position by the community."ll
Bill 28-13 also would clarify (but in our opinion not substantively change) the current
law governing annual CPI adjustments to the salaries of the County Executive, County Council,
Sheriff, and State's Attorney. Annual adjustments are based on any increase in the CPI-V, and
will continue each year unless modified by the enactment of a new law.
See
note 2.
10
Salary projections for January 2014, 2015, 2016, 2017, and 2018 are estimates and are based on the County
Finance Department's projections for the change in the CPI-U for those years.
http://rnontgomervcountymd. goy/OM B/Resources/Fi les/om b/pdts/fv 14/psprec
l
psp-revenue. pdt: page 5-4
II
Report ofthe Committee to Study the Compensation ofthe County Executive, County Council, Sheriff, and State's
Attorney,
September 2013, pp. 15-17.
9
3
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Section 10-302 of the recently added Local Government Article of the Annotated Code of
Maryland
12
empowers a county to establish a commission to recommend the compensation and
allowances to be paid to members of the county legislative body.
See
©7. This section provides
that a county legislative body may reduce or reject the commission's recommendation, but shall
not increase any item.
It
also includes a provision that "Any change in the compensation and
allowances of members of the county legislative body shall be enacted by ordinance before the
election of the members of the next succeeding county legislative body and take effect only for
the members of the next succeeding legislative body."
It
is our opinion that the use of the phrase
"take effect only for the members of the next succeeding legislative body" is in reference to a
point in time,
i.e.,
the effective date of the change, and does not impose a durationallimitation on
approved recurring changes such as the annual CPI adjustments. Such interpretation is
consistent with the Maryland Constitution's prohibition on increases or decreases in
compensation of elected officials during their term of office.
Council President Navarro may offer an amendment to Bill 28-13. This amendment
would implement the Committee's recommendations for the next Council, but would do so
through a phased process. Rather than increase the salaries of the next elected County Council
by about 17.5% in December 2014, with CPI adjustments thereafter, the amendment would
provide for 6.5% increases in 2014, 2015, and 2016, and a 6.02% increase in 2017. Under this
amendment, the compensation of Councilmembers would reach the level recommended by the
Committee in the last year of the next term. However, by phasing the increases, the aggregate
amount of the salaries paid to Councilmembers during the term would be reduced by $204,422 as
compared to the Committee recommendation. The provisions of Bill 28-13 pertaining to the
County Executive, Sheriff, and State's Attorney would not be changed by this amendment.
This packet contains:
Bill 28-13
Legislative Request Report
Historical Salary Data
Md. Code Ann., Local Gov't,
§
10-302
Potential Council President Amendment
F:\LA W\SI LLS\ 1328 Elected Officials Compensation\PH-Action Memo. Docx
Circle
#
1
5
6
7
9
The Local Government Article was added to the Maryland Code by Chapter 119,2013 Laws of Maryland,
effective October I, 2013, which revised, restated, and recodified the laws of the State relating to local governments.
12
4
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Bill No.
28-13
Concerning: Elected
Officials
Compensation
Revised:
9/26/2013
~
Introduced:
_!::m~~.....£lill~
_ _
Expires:
April 1, 2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
_--:-:~_:::--
_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President on behalf of the Committee to Study the Compensation of the County
Executive, County Council, Sheriff, and State's Attorney
AN
ACT
to:
(1)
(2)
(3)
modify the compensation of the County Executive and County Council;
clarify the Code provisions governing annual adjustments to the compensation of the
County Executive, County Council, Sheriff, and State's Attorney; and
generally amend the law relating to compensation of elected officials.
By amending
Montgomery County Code
Chapter lA, Structure of County Government
Section lA-106
Chapter 2, Administration
Sections
2-7
and
2-123A
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law
by
original bill.
Deletedfrom existing law
by
original bill.
Added
by
amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 28-13
Sec.
I.
Sections lA-106, 2-7, and 2-123A are amended as follows:
2
3
4
lA-106. Salaries of the County Executive and Councilmembers.
(a)
Salary ofCounty Executive.
Except as provided in subsection (c), the
County Executive must receive an annual salary of $190,000 beginning
on December
L
2014 [:
(1)
(2)
(b)
$175,000 beginning on December 7,2009; and
$180,250 beginning on December 3,2012].
5
6
7
8
9
Salary ofCouncilmembers.
(1)
Except as provided in paragraph (2) and subsection (c), a
Council member must receive an annual salary of$125,000
beginning on December
L
2014 [:
(A)
(B)
(C)
$94,595 beginning on December 6, 2009;
$99,325 beginning on December 5, 2011; and
$104,291 beginning on December 3,2012].
10
11
12
13
14
15
(2)
The Council President must receive an additional amount equal
to 10% of the salary of other Councilmembers.
16
17
18
19
(c)
Annual adjustments.
(1)
Beginning on [December 2, 2013] December
L
2015, the
salaries
of
the
Councilmembers
must
be
[increased]
20
21
adjusted annually on the first Monday in December by the
annual average percentage increase, if any, in the Consumer
Price Index for All Urban Consumers for the Washington­
Baltimore Metropolitan Area, or any successor index.1 for the 12
months preceding September 1 of that year.
(2)
Beginning on [December 2,2013] DecemberL 2015, the salary
of the County Executive must be [increased] adjusted annually
on the first Monday in December by the annual average
f:\law\bills\ 1328 elected officials compensation\bill 4.doc
22
23
24
25
26
27
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BILL
No. 28-13
28
29
30
31
percentage increase, if any, in the Consumer Price Index for All
Urban Consumers for the Washington-Baltimore Metropolitan
Area, or any successor index, for the 12 months preceding
September 1 of that year.
32
33
34
35
*
vehicle.
*
*
2-7. Location of Sherifrs office; compensation of Sheriff; required use of
*
(b)
*
*
36
37
Salary.
(I)
Except as provided in paragraph (2), beginning on December 6,
2010, the Sheriff must receive an annual salary of$154,000.
38
39
40
(2)
Beginning on December 2, 2013, the Sheriffs salary must be
[increased] adjusted annually on the first Monday in December
by the annual average percentage increase, if any, in the
Consumer Price Index for All Urban Consumers for the
Washington-Baltimore Metropolitan Area, or any successor
index, for the 12 months preceding September 1 ofthat year.
41
42
43
44
45
*
(a)
*
*
46
47
48
2-123A. Compensation of the State's Attorney.
Except as provided in subsection (b), beginning on January 3, 2011,
the State's Attorney must receive an annual salary of $199,000.
(b)
Beginning on January 6, 2014, the salary of the State's Attorney must
be adjusted annually on the first Monday in January by the annual
average percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for the Washington-Baltimore Metropolitan
Area, or any successor index, for the 12 months preceding September
1 of that year.
f:\lawlbillsl1328 elected officials compensation\biIl4.doc
49
50
51
52
53
54
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BILL
No. 28-13
55
56
57
58
Sec. 2. Transition.
The County Executive and each Councilmember must receive the salaries
authorized by Section IA-I06 before being amended by this Act until those salaries
are increased under Section IA-I06, as amended by Section 1 of this Act.
Approved:
59
60
Nancy Navarro, President, County Council
Date
61
Approved:
62
Isiah Leggett, County Executive
Date
63
This is a correct copy ofCouncil action.
64
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\1328 elected officials cornpensation\biIl4.doc
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LEGISLATIVE REQUEST REPORT
Bill 28-13
Elected Officials
-
Compensation
DESCRIPTION:
To modify the compensation of the County Executive and County
Council, and clarify the Code provisions governing annual
adjustments to the compensation of the County Executive, County
Council, and Sheriff
The Council is authorized to set the compensation for the
Councilmembers and the Executive by Charter Sections 107 and 204.
State law authorizes the Council to set the compensation for the
Sheriff and the State's Attorney. Article III, Section 35 of the
Maryland Constitution prohibits changes in the salary of these elected
officials during their term of office.
In the third year of its term, consistent with past practice, the Council
established the Committee to Study the Compensation of the County
Executive, County Council, Sheriff, and State's Attorney
(Committee) by Resolution No. 17-563 on October 16,2012. The
Council appointed 7 volunteer residents to the Committee by
Resolution No. 17-686 on February 26, 2013. This Bill would
implement the recommendations of the Committee.
Committee to Study the Compensation of the County Executive,
County Council, Sheriff, and State's Attorney
To be requested.
To be requested.
To be requested.
See September 2013 Committee Report
Josh Hamlin, Legislative Attorney
Not applicable.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
F:\LAW\BILLS\1328 Elected Officials Compensation\LRR.Docx
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HISTORICAL SALARY DATA
Position
1990
1994*
1998
2002
2006
2010
Current....
County Executive
$86,020
$101.628 $115.000 $136,732
$163,000 $175,000
$180,250
County Councllmembers
$47,423
$56,029 $62,500 $72
1
557 $84?21 $94,040 $104,022
:,
7-=5~0---..:!$:..:...79::.!,.:::.81.:.:2=__:.:$:!:..:9~3:.t..:!
:.::9.:::.3
....:$;:..:1~0.::J3,:.;44-:-4~$;..1:..:1_7_4!...:=,47725
1
County Council President ._...: :$:. =5:.: 2.!. :
1:=-65::--=$:.:;:.6~1
,,::::63:::.:2=----,.$=.:6:.::8=.!...:,
§.tate's
Attome~
.......:::.:$8::;7...!,:.7:....:1:.=::2---..:$::.;:9:.:::9J..:'
1~7~5..::$~1..:.10~,,::::OOO~~$1!!2:.::::8~.S:;:::9:;::.8...:!$~1;;::60=:!,~00::.::O:......:!:.$1~9::.:::9::..:,O:..:::O:;::.O-=$...:.;19::..:9:J..:'
0:,:0:..::..0
Sheriff
$65,000
$72,397
$89,500 $102.000 $125,000
$154,000
$154,000
*
No compensation committee in 1994
.... Will increase as
of
December
2.
2013 (January
6,
2014 for State's Attorney)
D-l
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Page I
. N·
.
L
eXls·eXIS·
-00
10fiDOCUMENT
Annotated Code of Maryland
Copyright 2013 by Matthew Bender and Company, Inc., a member of the LexisNexis Group
All rights reserved.
***
Statutes current through the 2013 General Assembly Regular Session
***
***
Annotations current through September 9,2013
***
LOCAL GOVERNMENT
DIVISION III. COUNTIES
TITLE 10. EXPRESS POWERS ACT
SUBTITLE 3. EXPRESS POWERS OF CHARTER COUNTIES AND CODE COUNTIES
GO TO MARYLAND STATUTES ARCHIVE DIRECTORY
Md. LOCAL GOVERNMENT Code Ann.
§
10-302 (2013)
§
10-302. County legislative body -- Compensation
(a) Compensation commission. -- By ordinance, a county may establish a commission to recommend compensation
and allowances for members of the county legislative body.
(b) Recommendations. -­
(I) Within 15 days after the beginning of the fourth year of the term, a commission established under this section,
by resolution, shall submit to the county legislative body its recommendation for the compensation and allowances for
members of the county legislative body.
(2) Subject to subsection (e) of this section, the commission may recommend an increase or decrease in the
compensation and allowances for members of the county legislative body.
(c) Legislative action. -- On receiving the resolution, the county legislative body may reduce or reject the
commission's recommendation, but may not increase any item.
(d) Changes in salary. -- Any change in the compensation and allowances of members of the county legislative
body shall be enacted by ordinance before the election for the members of the next succeeding county legislative body
and take effect only for the members of the next succeeding county legislative body.
(e) Minimum for compensation and allowances. -- The compensation or allowances for members of the county
legislative body of a charter county may not be less than provided in the county charter.
HISTORY:
An. Code 1957, art. 25A,
§
5(AA); 2013, ch. 119,
§
2.
(j)
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Page 2
Md. LOCAL GOVERNMENT Code Ann.
§
10-302
NOTES:
REVISOR'S NOTE
This section is new language derived without substantive change from former Art. 25A, § 5(AA).
In subsection (a) of this section and throughout this subtitle, the references to "county legislative body" are substituted
for the former references to "county council" for accuracy because this subtitle applies to both charter counties, which
are governed by a county council, and code counties, which are governed by county commissioners.
In
subsection (a) of this section, the reference to a commission "to recommend" compensation and allowances is
substituted for the former reference to a commission "empowered to set" compensation and allowances for consistency
within this section.
In subsection (b)( 1) of this section, the former reference to the commission "set[ting]" the compensation and
allowances is deleted as inconsistent with the rest of this section, which requires the commission to submit "its
recommendation" for the compensation and allowances.
Also in subsection (b)(I) of this section, the former reference to the term "of each council" is deleted as surplusage.
In subsection (b)(2) of this section, the introductory clause "[s]ubject to subsection (e) of this section" is added for
clarity.
Also in subsection (b)(2) of this section, the reference to the "allowances" for members is added for consistency
within this section.
In subsection (d) of this section, the reference to "[a]ny change in the compensation ... be[ing] enacted by ordinance" is
substituted for the former reference to "[t]he ordinance making any change in the salary ... be[ing] ordained" for clarity.
Also in subsection (d) of this section, the reference to the "compensation and allowances
of'
members is substituted
for the former reference to the "salary paid to" members for consistency within this section.
USER NOTE: For more generally applicable notes, see notes under the first section of this part, subtitle, title, division
or article.
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AMENDMENT
To Bill 28-13, Elected Officials - Compensation
BY COUNCIL PRESIDENT NAVARRO
On
©2,
amend lines
8-14
to read:
1
(b)
Salary ofCouncilmembers.
2
(1)
Except as provided in paragraph (2) and subsection (c), a
Councilmember must receive an annual salary
of~
[[$125,000
beginning on December
L
2014]] [:
(A)
(B)
(C)
$94,595 beginning on December 6, 2009;
$99,325 beginning on December 5,2011; and
$104,291 beginning on December 3,2012]
$1l3.310 beginning on December 1. 2014;
3
4
5
6
7
8
9
10
11
!lll
$120,675 beginning on December 7. 2015;
$128,519 beginning on December 5,2016: and
$136,258 beginning on December 4,2017.
On
©2,
amend lines
17-24
to read:
12
13
(c)
Annual acijustments.
(1)
Beginning on [December 2, 20l3] [[December
1.,.
2015]]
~~~~~~~,
14
15
16
17
18
19
the salaries of the Councilmembers must be
[increased] adjusted annually on the first Monday in December
by the annual average percentage increase, if any, in the
Consumer Price Index for All Urban Consumers for the
Washington-Baltimore Metropolitan Area, or any successor
index.1 for the 12 months preceding September 1 of that year.
(j)