§ 36-5-3-2 — Compensation for officers and employees; fixing of annual compensation; determining increases or decreases in compensation

(a) As used in this section, "compensation"
means the total of all money paid to an elected town officer for
performing duties as a town officer, regardless of the source of funds
from which the money is paid. The term includes all employee benefits
paid to an elected town officer, including life insurance, health
insurance, disability insurance, retirement benefits, and pension
benefits. For purposes of determining an increase or decrease in
compensation of an elected town officer, the term does not include any
of the following:
(1) Payment of an insurance premium.
(2) Payments in recognition of:
(A) longevity;
(B) professional certifications; or
(C) educational advancements;
that are separately identified on a salary ordinance or resolution.
(3) Payment of a stipend or per diem allowed by statute.
(4) A payment authorized under subsection (d).
(b) The town legislative body shall, by ordinance, fix the
compensation of its own members, the town clerk-treasurer, and the
town marshal. An ordinance adopted under this subsection that fixes
the annual compensation of an elected town officer shall provide for an
annual, monthly, or biweekly salary schedule. An elected town officer
is not required to report hours worked and may not be compensated
based on the number of hours worked. The legislative body shall
provide reasonable compensation for other town officers and
employees.
(c) The compensation of an elected town officer may not be changed
in the year for which it is fixed, nor may it be reduced below the
amount fixed for the previous year.
(d) The legislative body may provide that town officers (including
elected town officers) and employees receive additional compensation
for services that:
(1) are performed for the town;
(2) are not governmental in nature; and
(3) are connected with the operation of a municipally owned
utility or function.
Subject to the approval of the legislative body, the administrative
agency operating the utility or function shall fix the amount of the
additional compensation, which shall be paid from the revenues of the
utility or function.
[Pre-Local Government Recodification Citations: Part new;
18-3-1-34.]
As added by Acts 1980, P.L.212, SEC.4. Amended by Acts
1981, P.L.17, SEC.26; P.L.351-1983, SEC.1; P.L.15-1993, SEC.4;
P.L.209-2019, SEC.15.