CITY OF HOMER

HOMER, ALASKA

Stark

ORDINANCE 05-41

AN ORDINANCE OF THE CITY OF HOMER AMENDING HOMER CITY CODE SECTION 1.24.040, BYLAWS FOR COUNCIL PROCEDURE, (M) SALARIES OF ELECTED OFFICIALS, TO PROHIBIT THE CITY FROM SPENDING SUPPORTING PAYMENTS IN PUBLIC EMPLOYEES RETIREMENT SYSTEM FOR ELECTED OFFICIALS.

WHEREAS, At the present time the City is offering elected officials membership in the Public Employees Retirement System (PERS) despite the Code's express prohibition of such compensation unless authorized by ordinance, although the City Attorney has ruled that this is not illegal; and

WHEREAS, The City at this time has an indebtedness to PERS in excess of $6 million; and

WHEREAS, Under PERS rules a Council Member would receive a pension of $125 per month for the rest of his/her life after being in office five years, which is about $38,000, or over five years about $650 per month; and

WHEREAS, this Council deems this to be a subterfuge and poor public policy.

NOW THEREFORE BE IT ORDAINED by the City of Homer:

Section 1. HCC Section 1.24.040(m) Salaries of Elected Officials is hereby revised to read as follows:

m. Salaries of elected officials. The Council may fix by ordinance the salaries of elected officials. [ The] Homer City Councilmembers and the Mayor shall receive an expense allowance of $50 per month. The City shall not spend any funds for elected officials' membership in the Public Employees Retirement System. An elected official may not receive any other compensation for service to the municipality unless specifically authorized to do so by ordinance. Per diem payments or reimbursements for expenses are not compensation under this section.

Section 2. This ordinance is permanent and shall become part of the Code.

PASSED AND ENACTED by the Homer City Council this ____ day of ________, 2005.

PASSED AND ENACTED by the Homer City Council this ________ day of __________, 2005

CITY OF HOMER

_____________________________ JAMES C. HORNADAY, MAYOR

ATTEST:

______________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Introduction: 08/08/05

Public Hearing:

Second Reading:

Effective Date:

Ayes:

Noes:

Abstain:

Absent:

Reviewed and approved as to form and content:

___________________________

Walt Wrede, City Manager Gordon Tans, City Attorney

___________________________

Date Date

Fiscal Note: Saves the City at least $100,000.00.