Palo Alto City Manager celebrates 5 year anniversary - with a $1000+ per month increase in his City paid retirenet funding
Original post made by Diogenes on Sep 23, 2013
First of all, this is an apparent precedent for him, at least in his track-able and seemingly transient employment history over the past 20 years or so, where he has failed to make that 5 year horizon in his employment with ICMA, Tuscon AZ, Berkeley CA, Coconino County (Flagstaff) AZ,the California Association of Counties, and others in the past.
This 5 year milestone now allows him to become vested in the California Public Employees Retirement System, also an apparent first for him in his retirement planning. That vesting occurs at the rate and benefit level that was in existence at the time he was hired by Palo Alto 5 years ago, not at the reduced levels he has implemented during his tenure. That would appear rather ironic for a Manger who has been so vocal in his criticisms of those prior levels.
Further, and more to the point, this milestone enables an increase in his "off the books" payment by the City Council to a little known provision in his original employment contract for an IRS section 401(a) "Government Money Program" account established for him by the City. Those funds are paid by the City directly into a separate pre- tax account without going through his paycheck or showing on his reported salary.
That contract proviso is for payment of 100% of the maximum amount allowed by the IRS code once the 5 year threshold was met. That now results in an increase of over $1000.00 pr month in that amount, up to a new annual total of $51,000.00 beyond his base salary.
Most private sector folks - and other City employees - are limited to a maximum of $17,500 per year, and that deducted from their base salary, not over and above it!
This all is just yet another example of the "Do as I say, not as I do" attitude prevalent at the top in City Hall.
on Sep 24, 2013 at 12:38 am
This does not make me happy. If tax revenues are not going up, why should anyone's salary be going up, but even if revenues were going up, every demand on new money should be carefully weighed and balanced against the needs of the city.
This is not right, somehow corporate officers and executive politicians have created a special class for themselves that ignores everyone else, and puts them only in league with and representing the rich and powerful ... only then do they get to rip-off the public like the others.
on Sep 24, 2013 at 12:26 pm
What kind of excuse is that for an exorbitant raise? Certainly not a legitimate one. What achievements have earned him such a raise? Nothing exceptional or worth that increase.
on Oct 3, 2013 at 11:39 am
Wow!!! With only two responses from local residents it seems that the majority of you must agree with how he is doing and that he deserves this increase. I'm sure that ALL of the employees from Palo Alto will be very happy for the City Manager and his financial increase. If I was a city employee and trying to maintain my income and future retirement I would be now looking at other cities who seem more concerned with retaining workers and i would consider relocating when the option became available. HOW DARE THE CITY MANAGER AND THE CITY COUNCIL PULL THIS TYPE OF BS ON ALL OF US AS TAXPAYERS!!
Palo Alto City Council you should be ashamed of yourselves for allowing this to happen while demanding pay cuts, less benefits , reduced staffing and telling us that we have no money and you should have told the City Manager that he too will have to do without.
Our employees deserve everything they have and more!.