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Proposal to raise Skagway assembly stipends to match mayor sparks debate over optics, PERS and phased increases
Summary
Ordinance 25-09 would change elected-official compensation to $1,000 per month for assemblymembers (matching the mayor); committee members debated optics, PERS thresholds, phased increases, and the fiscal impact before deciding to discuss further at the assembly meeting.
The finance committee spent extended time debating Ordinance 25-09, which would amend municipal code section 3.0155 to raise assemblymember stipends so that assemblymembers and the mayor receive equivalent monthly compensation (the draft proposes $1,000 per month for assemblymembers).
Assemblymembers described the discussion as difficult and posed questions about optics and the effect on civic motivations. One member said quadrupling the current rate could change public perception and said she was "philosophically trying to be pure" about civic service. Another member argued the current stipend (mentioned in the packet as roughly $228 after taxes depending on meetings attended) does not cover the real costs people incur and that higher pay could make service more accessible to people who currently cannot afford the time.
Manager Deetsch warned of an administrative consequence: if compensation exceeds certain limits, the municipality could trigger PERS (Public Employees' Retirement System) liability; he noted a $2,000/month threshold that could create additional employer obligations. Committee members compared Skagway to other Alaska municipalities and discussed alternatives such as phased increases (example: step from $500 to $750 to $1,000 over successive election cycles) or waiting for public comment.
Given time constraints the committee did not finalize a single recommendation on the ordinance. One member indicated support for removing immediate adoption of $1,000 and instead exploring smaller or phased increases; another argued that bringing parity with the mayor was reasonable, emphasizing workload and multiple committee commitments. The item was on the assembly agenda and committee members planned to continue the conversation in the assembly meeting the following day.
The committee also briefly discussed tax and payroll implications and the possibility of consulting CPAs about stipend tax treatment.
