Thursday, February 03, 2011

Council compensation increases for 2011

A controversial 13.4 percent increase in the City Council’s “cafeteria plan” fringe benefit package went into effect Jan. 1, but--so far, at least--only two council members are taking the extra $112 per month, according to figures provided by city Finance Director David Christian.

About once each year, I ask the finance director for a rundown on salaries, benefits and allowances paid to the city’s five elected council members, and the totals for 2011 are a bit more than was paid in 2010, mostly due to the benefit boost approved last year.

Annual compensation costs for the five governing body members totals $95,193, with individual totals ranging from $18,748 for Mark Schwing to $20,002 for Nancy Rikel.

Add amounts council members earn from serving as council representatives on four county boards, and the total reaches $101,583 or more, depending on the number of meetings attended.

If council members serving on boards were compensated for the number of paid meetings legally allowed--up to 192 a year total for the four boards--they would earn $22,350 more each year. But with rare exceptions, the boards meet monthly.

The “cafeteria plan” benefit, which was increased from $833 to $945 per month on a 5-0 Aug. 17 “consent calendar” vote that included five other genuinely routine items, allows the council several options: cash payment, funding a health plan or retirement account or any combination of the three.

The increase became a 2010 election issue, and, on election night, a motion to rescind the hike failed 3-2, with Rikel, Schwing and John Anderson opposed and Jan Horton and Jim Winder favoring repeal.

The only two members collecting the $945 are Rikel and Winder, according to Christian. Anderson, Schwing and newcomer Tom Lindsey take $833. They all put their totals in a 401k-like account, except Rikel, who uses $516 for a health plan and $429 for retirement.

Council members take a $500 monthly salary, $36 phone allowance and $30 per session pay for Redevelopment Agency meetings, usually held concurrently with twice-monthly council meetings.

The city pays $109.87 monthly into the individual PERS retirement accounts for four council members, based on a usual $560 monthly gross. Winder, PERS retired for his Brea police service, doesn’t receive the benefit.

Christian stated, “The city is self-insured for dental and vision benefits and each council member is eligible for those benefits as needed. The city does pay an administrative fee of $9.20 per month for each council member, however.”

The city also pays monthly amounts based on marital status and number of dependents: $21.45 for Anderson and Lindsey, $14.30 for Schwing and Winder and $6.77 for Rikel.

Council members don’t receive life or disability insurance benefits, Christian noted.

Per meeting pay for county board members: $212.50 for Anderson at the Sanitation District; $100 for Rikel at the Fire Authority; $120 for Schwing on the 241, 261 and 133 toll roads board and two committees; and $100 for Winder at Vector Control.

Although the boards usually meet monthly, the toll roads and sanitation boards each allow up to 72 paid meetings and the Fire Authority up to 36 paid meetings annually. Vector Control pays for a maximum of 12 meetings yearly.