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Mayor Asks Council To Renew City Mgr's Contract w/ $2,000 Raise in Annual Deferred Compensation, Further Boosting $180,000+ Annual Pay Package

We post Mayor's proposal, City Mgr. contract and proposed amendment verbatim


(November 16, 2001) -- At the November 20 Council meeting, LB Mayor Beverly O'Neill plans to ask Councilmembers to renew City Manager Henry Taboada's employment agreement with an amendment raising his annual $8,000 deferred compensation (which can be taken as salary) to $10,000 a year, further boosting the City Manager's $180,000+ annual pay package.

In a one page letter to Councilmembers (which we post verbatim on a link below), the Mayor avoids mentioning the total salary amount, instead writing:

"As you know, the City Manager's employment agreement calls for an evaluation and salary review. The City Manager has provided us with a list of accomplishments and has received constructive recommendations to implement.

"Based on our process, we are recommending a benefit increase by restating the deferred compensation amount from $8,000 to $10,000 per year. This adjustment would maintain the City Manager at the low end of the established range for this position and also reduces compression issues with other positions in he City. It would provide equity and is consistent with compensation paid to City Manager's [sic] in the region."

In December, 1998 the City Council approved a contract with Mr. Taboada for an annual salary of $165,000 plus $8,000 a year in deferred compensation. The contract allowed subsequent salary adjustments determined from time to time by the Council and the City Manager's base salary subsequently rose to $181,500; with deferred compensation of $8,000 taken last year as compensation, this produced a salary of $189,500.

As with other City Hall management, the City Manager also receives taxpayer funded retirement and pension benefits, health and life insurance, executive leave and other fringe benefits. Boosting city management salaries -- which is ultimately a City Council decision -- also increases the eventual pension amount that can be collected, becoming an additional taxpayer obligation.

Documents prepared for Council approval (which we post below) recite that all the other terms and conditions of the City Manager's current contract "are ratified and confirmed and shall remain in full force and effect."

LBReport.com requested from the City Clerk's office, and was promptly provided with, a copy of the City Manager's underlying Dec. 1998 contract (a public record). In the public interest, we post it verbatim in pdf form. It can be accessed by clicking on City Manager's contract prior to amendment. (Six pages)

We also post the proposed contract amendment, included in the Council's agenda package, which can be viewed by clicking on Proposed amendment to City Mgr's contract. (Two pages)

We also post the Mayor's proposal to Councilmembers, likewise part of the Council's agenda package, can be viewed by clicking on Mayor O'Neill's letter to Councilmembers re City Mgr. amendment contract. (One page)

The proposed renewal and amendment of the City Manager's contract is #27 on the City Council's November 20 agenda.


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