Detroit commission considers raises for city council, clerk

[March 24, 2015]  By Serena Maria Daniels
 
 DETROIT (Reuters) - Detroit's city council members, city clerk and Mayor Mike Duggan could be in line for raises only months after the city officially exited the largest municipal bankruptcy in U.S. history.

The Detroit Elected Officials Compensation Commission, which determines whether elected officials can receive raises, met on Monday to consider the request City Council President Brenda Jones and City Clerk Janice Winfrey made earlier in March.

About three dozen Detroit residents protested the possibility of raises, including Valerie Burris, who said council pay is already three times that of an average Detroiter.

"Now that you start having money come in, start restoring services before you start increasing people's pay," Burris said.

Detroit's city council president is paid $80,800, about 33 percent less than the average pay for similar cities, and regular council members $76,900, about 21 percent less, according to a report submitted to the commission by human resources director Denise Starr.

The report, which compared Detroit to Chicago, Philadelphia, Dallas and other cities, said Winfrey's salary is about 43 percent below average. She is paid the same as council members.

Mayor Duggan's $166,487 salary is 11 percent below the average, but he is not seeking a raise.

Detroit's elected officials and other city workers had pay cut by at least 10 percent in 2012, a year before the bankruptcy.

Kevyn Orr, the city's state-appointed emergency manager who oversaw the restructuring, awarded 5 percent raises in mid-2014 to salaried workers including the council and mayor, which was nearly offset by a required 4 percent pension plan contribution.

Detroit officially exited bankruptcy in December, but remains under the supervision of a state-appointed financial review commission until 2019.

On Monday, Detroit CFO John Hill said it was likely a pay increase would require changes to the city's budget, which would require approval by the financial review commission.

The commission is scheduled to meet next Monday as well but has until April 20 to make a decision.

(Reporting by Serena Maria Daniels; Editing by David Bailey and Ken Wills)

[© 2015 Thomson Reuters. All rights reserved.]

Copyright 2015 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.