Magistrates' Pay - Hardin County Government

Magistrates’ PayAugust 25, 2009AndSeptember 8, 20091

PurposeTo establish theMagistrates’ Payfor2011/2014 Term of Office2

History• On October 11, 1999 Fiscal Courtapproved an 86.3% increase inMagistrates’ Base Pay from $13,421to $25,000 to become effectiveJanuary 2003.• Magistrate Base Pay in CY 2006 hadgrown with cost of living adjustmentsto $27,191.3

History—continued• Commissioner Base Pay in CY 2009with cost of living adjustments is$29,055• Projected Base Pay in CY 2011 atcurrent rate with cost of livingadjustments for 2010 and 2011 will be$30,7754

CurrentCompensation CY 2009Annual Base Pay $29,054.61Annual Committee Pay $ 3,600.00Annual Training Incentive $ 3,528.24Total Salary $36,182.85Benefits•Social Security/Medicare (County payment) $ 2,767.99•Workers Compensation (County payment) $ 354.59•Health Insurance (County/HMH) $ 8,040.00•Retirement (County payment) $ 5,365.92Total Benefits $ 16,528.50Total Cost for Each Position $52,711.355

Projected (Based on Current Rate)Compensation CY 2011Annual Base Pay $30,775.00Annual Committee Pay $ 3,600.00Annual Training Incentive $ 3,800.00Total Salary $38,175.00Benefits•Social Security/Medicare (County payment) $ 2,920.39•Workers Compensation (County payment) $ 374.12•Health Insurance (County/HMH)* $ 8,040.00•Retirement (County payment) $ 6,169.08Total Benefits $ 17,503.58*Health Insurance reflected in CY 2009 dollarsTotal Cost for Each Position $55,678.586

Related Facts• Magistrate Base Pay in December 2002 = $14,465• CY 2002 Base Pay of $14,465 adjusted for annualcost of living to CY 2011 would be $18,295• CY 2009 Annual Base Pay for the nine surroundingcounties range from $4,993 to $18,000• Elizabethtown City Council CY 2009 Pay is $12,500• Radcliff City Council CY 2009 Pay is $10,193.7

ProposedCompensation CY 2011Annual Base Pay $20,000.00Annual Committee Pay $ 3,600.00Annual Training Incentive $ 3,800.00Total Salary $27,400.00Benefits•Social Security/Medicare (County payment) $ 2,096.10•Workers Compensation (County payment) $ 268.52•Health Insurance (County/HMH)* $ 8,040.00•Retirement (County payment) $ 4,427.84Total Benefits $14,832.46* Health Insurance reflected in 2009 dollarsTotal Cost for Each Position $42,232.468

Comparison in CY 2011• Current Base Pay plus Benefits adjusted forcost of living would cost County $55,678.58x 8 magistrates = $445,428.64• Proposed Base Pay of $20,000 plusBenefits would cost county $42,232.46x 8 magistrates = $337,859.68• Savings of Proposed Base Rate to County:$445,428.64 minus $337,859.68 =$107,568.96 annually9

KRS 64.530 Compensationof … Members of Fiscal Court• KRS 64.530(4):Compensation shall be fixed not later thanthe first Monday in May in the year in whichthe officials are elected.• KRS 64.530(6):The Fiscal Court shall fix the amount to bereceived…but no change in compensationshall be effective as to any member of FiscalCourt during their term of office.11

SummaryCHRONOLOGYPERSPECTIVE• 1999--$13,421• 2002--$14,465• 2003--$25,000• 2006--$27,315• 2009--$29,055• 2010--$30,775 projected• 1999 pay adjusted forCPI=$18,295• Base pay for surroundingcounties=$5,000-$18,000• E’town Council=$12,500• Radcliff Council=$10,19312

Recommendation• “Fix” Magistrates’ “Base Pay” effectiveJanuary 2011 @ $20,000 annually• Provide Annual Cost of Livingadjustment as of January eachsubsequent calendar year beginning in2012.13

County Judge/ExecutiveCompensation• Set by State as the County’s “Chief Executive”• Same as County Clerk, Sheriff, Jailer• Less than Circuit Judges or District Judges• Less than Superintendent of Schools• Same training incentive, “expenses”, and CPIas paid to Magistrates/Commissioners• Judge Berry is not receiving HMH or CountyHealth Insurance14

KRS 67.705• “Each County shall have a chiefexecutive officer known as the CountyJudge/Executive.”• “The County Judge/Executive shallreceive an annual salary pursuant tothe salary schedule in KRS 64.5275…”15

Salary Schedule forJudge/Executive, Clerk, Sheriff, and Jailer• KRS 64.5275 establishes the salaryschedule for County Judge/Executives,Clerks, Sheriffs, and Jailers based upon 9levels corresponding to counties’ populationsize and 4 salary steps reflecting years ofexperience in office with the maximumexperience level being 4 years.16

Salary Schedule continuedJudge/Executive, Clerk, Sheriff, and Jailer• Hardin County is in Level 8 with all 4 officeholders at Salary Step 4.• Kenton, Boone, Daviess, and Warren are alsoin Level 8.• Kenton, Boone, and Daviess haveCommissioners. Only Warren has magistrates.• There are NO counties in Level 9 (these levelsdo not apply to merged or consolidatedgovernments of Jefferson or Fayette Counties).17

Judge/Executive ◊ Jailer ◊County Clerk ◊ SheriffAnnual Base Pay $100,548.48Annual Expense (State) 3,600.00Annual Training Incentive 3,528.24Total Salary: $107,676.72BenefitsSS/Medicare (County Payment) $ 8,237,28Workers’ Comp (County Payment) 1,055.17Health Insurance (County/HMH) 0.00Retirement (County Payment) 15,365,47Total Benefits: $ 24,657.92Total Cost: $132,334.6418

Additional Employment• County Judge/Executive, County Clerk,Sheriff, and Jailer are full-time positionsaffording no opportunity for additionalemployment• Magistrates work part-time hours; thereforeallowing them to pursue other employmentopportunities—most often including working“full-time” jobs in addition to serving asmagistrates19

Proportionality• Elected county full-time positions currently cost2.5 times more than a commissioner($132,335/$52,711 = 2.51)• J/E averages 4 times as many hours of work perweek than a magistrate (60/15 = 4)• The correct proportional total cost for a magistratewould be $33,084 ($132,335/4 = $33,083.75)• Subtracting committee pay and training incentiveresults in a proportional “base pay” for eachmagistrate of approximately $13,000 annually20

Alternate Recommendation #2for Magistrates Compensation CY 2011Annual Base Pay $13,000.00Annual Committee Pay 3,600.00Annual Training Incentive 3,800.00Total Salary: $20,400.00BenefitsSS/Medicare (County Payment) $ 1,560.60Workers’ Comp (County Payment) 199.92Health Insurance (County/HMH)* 8,040.00Retirement (County Payment) 3,296.64Total Benefits: $ 13,097.16Total Cost for Each Position: $33,497.16* Health Insurance reflected in 2009 Dollars21

Other Comparisons22

Counties over 70,000Population using MagistratesNo ofMagistrates2008EstimatedPopulationPopulationperMagistrateMagistrateBase Pay$ perPersonWarren 6 105,862 17,644 $29,852 $1.69Madison 4 82,192 20,548 $25,690 $1.26Christian 8 79,820 9,978 $17,973 $1.80Bullitt 4 75,028 18,757 $18,000 $0.96Average 5.5 85,726 16,732 $22,879 $1.43$22,172 $1.80 HighHardin 8 98,549 12,318 $17,615 $1.43 Average$9,460 $0.96 LowBased on Warren County Only $20,817 $1.6923

Pay for 3 vs. 8Keeping County’s Cost the SameCurrent Total Salary for Commissioners $108,548.55($36,182.85 x 3)Total Salary cost divided by 8 Magistrates $13,568.57($108,548.55/ 8)Minus Committee Pay and Training Incentive -$7,128.24No increase toCounty’s costincludingcommittee payand trainingincentiveRemaining Funds for Base Pay $6,440.33Current Total Base Pay for Commissioners $87,163.83($29,054.61 x 3)Total Base Pay divided by 8 Magistrates $10,895.48($87,163.83/ 8)Not includingcommittee payand trainingincentive24

Magistrate Base Pay:Summary ofMethods/Comparisons• Continue current Commissioners' Salary for Magistrates (with CPI) $30,775• Per Person Cost based on Warren County $20,817(only county over 85,000 population with magistrates)• Return to 2002 Base Pay plus CPI Adjustments $18,295• Match Highest Surrounding County $18,000• Average Per Person Cost for Counties over 70,000 $17,615• Proportional Share Compared to Full-time Officials $13,000• Match Highest Paid City Council in Hardin County $12,500• Hardin County's Total Base Pay for 3 Commissioners $10,895divided for 8 Magistrates• Hardin County's Total Salary for 3 Commissioners $6,440divided for 8 Magistrates25

Composite Approach• Per person cost based on Warren County $20,817• Return to 2002 base pay plus CPI adjustments $18,295• Match highest surrounding county $18,000• Average per person cost for counties over 70,000 $17,615Composite Base Salary (average of 4 methods) $18,682With projected CPI for 2010 and 2011 $19,78926

Alternate Recommendation #3for Magistrates Compensation CY 2011Annual Base Pay $19,800.00Annual Committee Pay 3,600.00Annual Training Incentive 3,800.00Total Salary: $27,200.00BenefitsSS/Medicare (County Payment) $ 2,075.15Workers’ Comp (County Payment) 265.85Health Insurance (County/HMH)* 8,040.00Retirement (County Payment) 4,383.60Total Benefits: $ 14,764.60Total Cost for Each Position: $41,964.60* Health Insurance reflected in 2009 Dollars27

Recommendations:• “Fix” Magistrates’ “Base Pay” effectiveJanuary 2011 @ $19,800.00• Provide Annual Cost of Living adjustmentas of January each subsequent calendaryear beginning in 2012• Eliminate HMH Healthcare Insurance as anoption for Fiscal Court members. OfferONLY Health Insurance options available toCounty Government Employees28