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HomeMy WebLinkAbout2025/07/07 - ADMIN - Minutes - City Council - Study SessionOfficial meeting minutes City council special study session St. Louis Park, Minnesota July 7, 2025 The meeting convened at 7:14 p.m. Council members present: Paul Baudhuin, Tim Brausen, Sue Budd, Yolanda Farris, Margaret Rog, Mayor Nadia Mohamed Council members absent: Lynette Dumalag Staff present: City manager (Ms. Keller), administrative services director (Ms. Brodeen), city clerk (Ms. Kennedy), HR director (Ms. Vorpahl) Discussion item 1. City council salaries Ms. Kennedy presented the staff report. Ms. Kennedy noted the policy considerations are: • Does the city council want to propose an increase to the annual salary for mayor and councilmembers beginning in 2026? • If so, does the city council want to propose a salary adjustment, and what is the target percentage or dollar amount of the increase? Ms. Kennedy stated that on June 2, 2025, the city council reviewed a proposed agenda topic related to the annual salaries for the mayor and council members and directed staff to place the item on an upcoming agenda for additional discussion. Minnesota Statute 415.11 states that the council sets its salary in such an amount that it deems reasonable. St. Louis Park Home Rule Charter Section 2.07 provides that the council shall set and may increase or decrease the salaries of the mayor and council members by ordinance. Any increase in salaries must take effect after the next municipal election. Ms. Kennedy reviewed the current practice for adjustments to council salaries as provided by ordinance and resolution adopted by council. The current practice has been in place since 2015 and provides a mechanism for automatic adjustments to council salaries every two years in an amount that aligns with increases received by non-union employees. She stated that if no additional action is taken by the council, the next salary adjustment is projected to be 6% for 2026-2027. Ms. Kennedy noted the current annual salary for the mayor and council members is $20,842 and $14,413, respectively. This is a cumulative amount reflecting work for both their Economic Development Authority (EDA) and city council member roles. Ms. Kennedy added that any increase beyond the automatic salary adjustment projected for 2026-27 would require additional funds to be allocated in the budget and should be handled as a budget request. She stated the scheduled standard increase for 2026 is included in the base budget, as are all projected personnel costs. She noted that to prepare a budget request, finance staff needs the council to identify a proposed percentage or dollar increase so the impact can be factored into budget planning. Docusign Envelope ID: A3091E19-C2BD-45B6-AF08-EA33F682B17F Special study session minutes -2- July 7, 2025 Council Member Rog asked if EDA salaries exist in any other cities. Ms. Kennedy stated of the 26 cities staff reviewed for comparison, not all have an EDA or an HRA. Of the cities that do, the salary is reported as one amount and is not broken out by role. Council Member Baudhuin clarified that if no action is taken, an automatic 6% increase in council member salaries will take place in 2026. Ms. Kennedy stated that is correct. Council Member Rog stated she was one of the members who proposed this topic for discussion. She explained that based on her experience and what she has observed, council members deserve to get paid more. She stated she is leaving the city council before a salary increase would take effect, and no one asked her to submit a salary increase for consideration. The discussion about council salaries is about elevating the professionalism of the role of councilmember and increasing the pool of candidates who could run for her position or other city council positions in the future. She noted salary figures influence the perceived value of the position and the people who hold it and reflect the commitment that is required. Council Member Rog stated she appreciated the data staff presented on comparable cities, adding this is an important part, but not the whole. She stated the council will need to be sure they gather the best data possible. She shared that in her own research, cities with salaries in the lower range were more traditional in their city council member makeup. She gave the examples of Roseville, Savage and Shoreview city councils, each of which had mostly white and mostly male council members. Council Member Rog shared that cities with higher salaries, such as Burnsville, Minnetonka, Maplewood and Maple Grove, appeared to have more women and people of color on city councils - as well as more female mayors - than other cities. Council Member Rog continued that, not surprisingly, smaller salaries can make it hard for people supporting families to run for office and serve effectively. Research suggests this may limit the pool of candidates on the basis of financial capacity. The result is that serving on a city council is only open to those wealthy enough to afford to serve. Higher salaries might encourage people to run for office; people from diverse socioeconomic backgrounds who might otherwise face financial constraints to run. Council Member Rog added that security is a new consideration and that salary increases could address those needs on some level. An additional $300 to $500 per month could also help cover childcare and transportation costs. The additional pay might also allow people to work fewer shifts, consider implementing security measures, and provide more financial flexibility. Council Member Rog added she would also propose that council members have more professional development opportunities. She detailed the need for enhanced onboarding and other activities of value to elected officials and the community in terms of preparation and experience. Council Member Farris agreed with Council Member Rog’s comments and shared some of her own experiences as a new councilmember who works multiple jobs. Docusign Envelope ID: A3091E19-C2BD-45B6-AF08-EA33F682B17F Special study session minutes -3- July 7, 2025 Council Member Baudhuin stated he feels a bit uncomfortable with voting for salary increases in the middle of his first term. However, the more he serves as a council member, he sees it is designed for a specific class of person and service is unattainable for many. Right now, St. Louis Park council member salaries are not at the top of the 26 comparable cities. He added that St. Louis Park tends to be a leader and stand out. Council Member Baudhuin stated he appreciates the comments from Council Member Rog. He would like the council to consider and study what it means to compensate for childcare and a missed shift at work in order to serve. He would love to see St. Louis Park be a leader in the metro area and make service more accessible to everyone. These are the tough things the council needs to review, especially when taking a hard look at race, equity and inclusion. Mayor Mohamed stated that initially, she wanted to review salaries because it can be difficult to serve when you have a job. However, she wants to be careful with this discussion and cautioned council not to put people of color at the center of the discussion regarding salaries. She stated many issues and factors related to equity and barriers to service should be looked at closely and a part of this conversation. Council Member Baudhuin clarified he did not want to exclusively make this issue about people of color, but about people for whom elected service is a financial constraint. Council Member Farris added that the money is important for her, and shared that she currently holds three jobs. She noted that the council onboarding process was very different for her and she wished there had been more resources available. She needed to listen and learn, and at that time, she was not familiar with city government. She appreciates staff and their support, but onboarding needs to be different when bringing new people on the council. Ms. Kennedy stated that staff is in the process of creating a very robust onboarding program that will be utilized to onboard newly elected officials in 2025. She noted staff are aware of the gaps and the need for more support to effectively onboard officials and to make more resources available on demand to build knowledge and confidence in decision-making. Council Member Budd stated the presentation comparing data from 26 cities was very informative, and that St. Louis Park appears to be above average on council member salaries. Council Member Budd noted that with an additional $300 to $500 per month, St. Louis Park would offer the highest-paid salary for mayor. She pointed out how by order of population, St. Louis Park is positioned in the middle, but their salaries are at the top of the range. She noted that Council Member Rog’s analysis of diversity on city councils was interesting and aligned with salaries. She stated this issue is sensitive and she would lean toward accepting the 6% increase only. Mayor Mohamed summarized Council Member Dumalag’s comments in support of an increase beyond 6% due to the complexity of issues that the council must consider. She expressed interest in a 15% increase for salaries. Docusign Envelope ID: A3091E19-C2BD-45B6-AF08-EA33F682B17F Special study session minutes -4- July 7, 2025 Council Member Brausen stated he is supportive of the salary increase, but added it is hard to enact since an increase appears to be very self-serving. However, the decision is not about this specific council, but about future councils. He stated increasing the salaries provides an opportunity to increase the applicant pool, noting he identifies as an older person of privilege who can afford to take a job like this and not worry about the paycheck. Council Member Brausen stated this discussion is about creating an environment where more people are willing and able to serve. He agreed that an increase in the range of $300 to $500 per month makes good sense. He stated the city is blessed that this council is diverse, and residents want people from all walks of life to serve on the city council. He supports raising salaries and the 6% increase for 2026, and then resetting and sticking to cumulative adjustments going forward. Council Member Budd reiterated that if the council were to approve $26,800 for the mayor’s salary, St. Louis Park would offer the highest mayoral pay in comparison with other cities. Council Member Rog stated she appreciates this conversation. She stated she recognizes the risks, especially from public opinion, but appreciates this interaction. Council Member Baudhuin stated he is struggling with not having a thorough equity analysis completed for this topic if one of the main motivations for council to make this change is to make elected service more equitable. He is hesitant to go forward with a salary increase and has concerns about pushback, especially without analysis. He would want to look at how this topic has been studied and how it should be structured. Ms. Brodeen stated that staff do utilize impact analyses tools that could be facilitated with the council’s participation at a future meeting. Ms. Kennedy stated there are studies that contemplate gender and socio-economic status in relation to accessibility to elected roles, but added it is difficult to information or data that directly correlates pay to variables such as number of candidates running for office, as they are multi-layered and multi-faceted and can be impacted by many different things. Council Member Brausen observed that over the years, there has been feedback from those wanting to serve on boards and commissions that there are financial challenges to participating. Mayor Mohamed added that the conversation around the words “public servants” makes it difficult as well, as some may think council members are here to serve and not to receive pay. Council Member Brausen asked if other cities provide council members with employment benefits. Ms. Vorpahl stated that most cities do not provide benefits, and that those that do build the total dollar amount into a council member’s salary. She stated she could research benefits and bring more information back to the council if requested. Council Member Rog stated that she is comfortable with a meaningful increase but would hesitate to go to the highest position in the metro. She stated $500 per month is too much, but noted that for those with financial barriers, she does feel an increase is important and helps to Docusign Envelope ID: A3091E19-C2BD-45B6-AF08-EA33F682B17F Special study session minutes -5- July 7, 2025 grow the candidate pool over time. However, she does not want to create issues and wants to be mindful of optics. She stated she is comfortable with a more modest increase that is still meaningful. Council Member Budd stated she would like to change her position on salaries to not to exceed a 15% increase, which would not move St. Louis Park to the top of the salary category. Council Member Baudhuin stated he is in favor of increasing the annual salary for mayor and council members and agrees with the maximum 15% increase. He stated he wants to continue to look at this issue and study it further as well. Council Member Brausen stated that the City of Minnetonka pays their council members $18,000 per year, and St. Louis Park would be $1,500 per year less. He noted he is not as concerned about the optics of being at the top as this is about adjusting, adding he would prefer to adjust now versus later, especially if the real intent is to decrease barriers. Council Member Rog asked if her fellow council members had communicated with cohorts in neighboring cities about salary increases. Mayor Mohamed noted that several cities are discussing the topic or have discussed in recent years. Council Member Rog pointed out that the proposed 15% is only 9% higher than the 6% automatic increase. She asked if this data could be presented by staff on paper, along with comparisons to other cities. Ms. Keller stated if the council were to consider the 15% increase, the annual council member’s salary would be $16,575 and the mayor’s salary would be $23,968. This increase would place the city third within the comparable cities for 2025. Mayor Mohamed stated she would prefer to see a dollar increase versus a percentage increase. Following additional discussion and review of percentage increases, the council directed, for budgeting purposes, to propose an increase to the annual salary for mayor and council members beginning in 2026. The proposed increase would reflect a $23,500 salary for the mayor, and a $18,000 salary for council members, for 2026 through 2027. Council Member Budd was not in agreement and Council Member Dumalag was absent. Ms. Keller stated that staff will include these numbers in the next budget conversation for council at which time they can be amended. Staff will also work to schedule time for council to complete an impact analysis on the topic before a final decision is made. The meeting adjourned at 8:34 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Docusign Envelope ID: A3091E19-C2BD-45B6-AF08-EA33F682B17F