City manager rejects initial raise, starts pension contributions

Burbank City Manager Mike Flad’s contract — renewed last week through 2016 — includes a modest pay raise and a new hybrid vehicle, but for the first time, he’ll start contributing to his pension, mirroring similar moves taken by the city’s employee unions.

The contract, approved by the Burbank City Council, will eventually bump Flad’s monthly pay from $18,117 to $19,797, but he chose to waive the incremental raises until 2014. In July, Flad will begin contributing 3% to his pension and then 4% in 2013.

“I’m not going to take an increase when other employees are taking [salary] freezes or a pay cut,” Flad said.

The original agreement included a 5% salary increase, but Flad chose to waive an increase for the first two years of the new contract with a 3% increase beginning in 2014.

A city staff report on the contract noted that even with the modest raise, Flad’s pay is below market rate in the public sector.

Flad said the contract struck a balance between being fair to taxpayers and keeping the city from lagging too far behind the market for public sector employee pay ranges, which are based on a survey of salaries at similarly sized cities.

“We want to make sure we retain staff and compensate fairly, and make sure we do the right thing with taxpayer dollars,” Flad said. “I think this contract strikes that balance.”

In 2000, Flad began working with Burbank as the parks, recreation and community services director before becoming assistant city manager in 2003 and then city manager in 2009.

“I think overall, he’s done a good job,” Councilman Gary Bric said. “There were some very difficult times when he first came on board. I think he’s worthy of his five-year compensation he’ll be receiving from the city.”

Flad noted that Burbank, like other cities, has been working to eradicate a budget deficit, which stems from reduced revenue with which to fulfill salaries and pension obligations.

For the last three years, the city has been working to correct financial practices that weren’t sustainable, Flad said, adding that he sees more challenges associated with the loss of redevelopment revenue.

He also said he faced the “Herculean” task of coming up with different ways to spur economic development.

“It’s not just going to be for the next five years, but maybe 10 years, and my goal is to work here through my retirement,” Flad, 45, said. “It’s exciting, but a daunting challenge. I’m looking forward to seeing the city transition through the changes.”