Special Considerations about Establishing Compensation of Elected Officials
Note: this is part 2 in our 2-part series on elected officials compensation.
Our previous post discussed the time period by which public bodies must establish compensation for their officers to be elected in the April 2025 election. In this post, we address special factors to keep in mind when establishing compensation for elected officials.
First, section 3.1-30-5 of the Illinois Municipal Code requires municipalities to establish their compensation by ordinance – not by a resolution or motion. The salaries may be fixed in the annual appropriation or budget ordinance, provided that the salaries or compensation of an elected official may not take effect during the term of any officer holding an elective office and that they are adopted at least 180 days prior to the terms of office commencing. See 65 ILCS 5/3.1-50-10 and 3.1-50-5.
Second, the compensation of elected officials must specify whether the members of the corporate authorities are to be compensated at an annual rate or for each meeting for which a public notice of the meeting was given. 65 ILCS 5/3.1-50-15. Also, you might consider specifying whether this applies to both regular and special meetings, and whether an elected official will be paid for a meeting even if they fail to attend.
Third, in addition to setting a salary or per meeting stipend, the compensation ordinance should specify whether the elected official’s compensation includes health insurance benefits or participation in the Illinois Municipal Retirement Fund. “Compensation” generally includes other benefits, like health insurance. See Ill. Attorney General Opinions 94-022 and 96-039.
Fourth, consider how to address expense reimbursement. If elected officials are submitting receipts and receiving reimbursement, that is permissible and not considered additional compensation under Section 3.1-50-15 of the Illinois Municipal Code. However, if an elected official is given a fixed lump sum expense allowance, that would be considered to be additional compensation. See DeSutter v. South Moline Township Board, 96 Ill.2d 372 (1983) and Hume v. Town of Blackberry, 131 Ill.App.3d 32 (1985). Also, if you provide a fix stipend amount for expenses, specify how that will comply with the requirements of the Local Government Travel Expense Control Act, 50 ILCS 150/1, et seq. Are travel expenses covered by the stipend or in addition to it?
Except for the clerk who can receive additional compensation for serving as collector (65 ILCS 5/3.1-50-25) and the mayor/village president who can receive additional compensation for serving as the local liquor control commissioner (235 ILCS 5/4-3), elected officials cannot receive additional compensation from the municipality, even for performing additional duties. See Ill. Attorney General Opinion 99-009.
Finally, an ordinance that is adopted at least 180 days prior to the terms of office, can provide for a cost of living or other similar increase during the term of office according to the Illinois Attorney General, which has opined that such increases, during the term of office, do not violate the prohibitions against increasing salaries during a term of office because they are set 180 days in advance. See Illinois Attorney General Opinion S-1366.
Post Authored by Keri-Lyn Krafthefer & Katie Nagy, Ancel Glink
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