New law would require standalone public hearings for municipal executive pay increases

Speaker 1, the session presenter, told attendees that SB 91 (sponsors Sen. Chris Wilson and Rep. Paul Cutler) requires cities and towns to hold a standalone public hearing any time specified municipal executives — city/town managers, chief administrative officers, city/town attorneys, or department/division heads — receive a compensation increase.

The presenter said the bill’s definition of compensation includes base salary, salary paid under contract, budgeted bonuses, vehicle allowances and deferred salary; citywide cost-of-living adjustments would also count as salary increases. Municipalities may gavel out of an active public hearing and gavel into a separate hearing devoted solely to compensation increases. The hearing need only be held once or twice per year, providing some flexibility around retention offers and counteroffers, the presenter said.

The training emphasized notice and agenda requirements: the increase must be shown on the agenda or hearing notice as a percentage, dollar amount or by listing old and new pay levels. The presenter cautioned that the bill text refers to a “city or town attorney” and that the session will confirm whether that language clearly includes outside contract attorneys who are paid under contract. “I’ll get back to you on those specifics for your city,” the presenter said.

Why this matters: the requirement creates a public point of oversight for senior municipal compensation decisions and increases transparency around pay-setting, while also adding procedural steps that cities must implement. Municipal staff should review agenda formats and notice language and consult their legal counsel to ensure compliance.

What’s next: the presenter invited attendees to submit questions and said staff will follow up with clarifications, including whether the bill’s language reaches contract counsel in every factual pattern.