Virgin • Municipal officials in Virgin, a small town 15 miles west of Zion National Park, voted repeatedly to increase their pay between fiscal years 2018 and 2022 without holding a public hearing or codifying the increases by ordinance as required by state law.
Mayoral pay went up from $400 to $1,000 a month, a 150% increase, over that period. Members of the Town Council increased their monthly pay by 250%, from $100 to $350. They also more than tripled the Planning Commission chair’s pay from $85 to $325. Pay for others on the commission jumped from $65 to $255.
By Mayor Jean Krause’s reckoning, Virgin overpaid its elected and appointed officials by $78,240 during that four-year period. Krause, who became mayor last January, said the pay hikes happened during former Mayor Matt Spendlove’s watch and doesn’t know why town officials quit complying with the law.
“It’s up to the mayor and town council that’s in office to know how to do things right,” Krause said. “My educated guess is that the previous council thought they knew what they were doing.”
Spendlove did not return phone calls, but Councilman Gene Garate, who has been on the council for three years and voted to approve some of the increases, said there was nothing nefarious going on. He said the previous mayor and council thought they were complying with the law by putting the increases in the budget each year.
Garate said each time the budget came up for approval, the meeting was properly noticed and copies of the budget with the proposed pay hikes were available to the public and discussed openly. But the increases were never put in ordinance form.
“Ignorance and errors on our part did not mean malfeasance on the part of the individuals that screw[ed] up. We just didn’t know,” he said. “It’s real easy for people to jump in and say all this shady crap is going on in this town. And that’s not the case. We try to do the right thing but holy criminy, there’s so much to keep up with.”
State code requires the cities to provide notice at least seven days before a public hearing to increase salaries. If municipal officials decide to hike pay, the code requires them to enact that increase by ordinance. Virgin town officials did neither.
Councilman Paul Luwe, a former city attorney for Bozeman, Montana, discovered the problem after he took office in January and wondered why he was receiving $350 a month instead of the $100 listed in the municipal ordinance. He notified Krause that the ordinance needed to be amended to reflect town officials’ current salaries.
Luwe said the mayor agreed but asked him to hold off until after the budget for fiscal year 2023, which contained yet another proposed pay increase was approved, so the city would not be processing two amendments to the salary ordinance in a short time.
Krause said town officials intended to provide the public notice of the proposed pay hikes in July, but someone dropped the ball. Nonetheless, the salary increases went into effect in July, despite the lack of a public hearing.
Another public hearing set for August had to be continued to September, the mayor added, after another item on the agenda took up the whole meeting. On Sept. 28, the mayor and council members voted 4-1 to approve the ordinance to hike municipal pay and made the increases retroactive to July. Luwe voted against the increase.
The latest pay hikes for the fiscal year 2023 bumped up the mayor’s monthly pay from $1,000 to $1,200 and council members’ pay from $350 to $400. The planning commission chair’s pay increased from $325 to $400, and other commissioners’ salaries went from $255 to $300.
Ann Beshell, who has lived in Virgin for 20 years, said the lack of transparency is something many residents have come to expect from their elected representatives.
“I understand people need to get paid, she said. But they need to do everything according to the law. They can’t just say, ‘Let’s give ourselves a raise’ and not have to ask the townspeople about it.”
California transplant Tony Sweett, who has lived in Virgin since 2019, is more inclined to give Virgin leaders the benefit of the doubt. He said his interaction with council members Garate and Leroy Thompson has shown him they are upfront guys. “I have the utmost confidence in them,” he said.
Heath Snow, Virgin’s part-time city attorney, said he did not know until just recently about the illegal salary increases. Krause said it is unfair to pin the problem on Snow, who only weighs in on matters when asked by town leaders.
“He would never have been aware that the town had not done an ordinance for salary,” the mayor said. “[Part-time city attorneys] do not sit there with a microscope and watch every little thing the town does. That is not their job.”
At any rate, the mayor and council agree, the question remains what to do about it. Krause said a representative of the state Auditor’s Office, who contacted her after receiving a complaint about the salary irregularities, told her the council needs to decide to recoup the cost or enact an ordinance to forgive the overpayments.
Snow has advised town leaders the latter might be the better option. Luwe concurs, saying trying to force current and former city officials to repay the amount they were overpaid could cost the city more in legal expenses than the amount of money they could recover.
“You might have to proceed with a civil action to collect the money,” Luwe said. “You’re going to be suing many of your citizens. This is a small town, so suing citizens is going to have a detrimental effect on people serving [in municipal government] in the future.”
Garate doesn’t mince words about which of the two options he prefers.
“We’re a very small town; everybody knows everybody,” he said. " If you come in and start saying, ‘Well, we’re going to sue you to get the money — the $300 or $500 or whatever it was that the town paid you that wasn’t put into ordinance because we messed up.’ Holy criminy, it would rip our town apart.”
Krause and council members will meet Nov. 16 to consider their options. While the outcome of that meeting is not set in stone, the city is currently drafting a proposed ordinance that would essentially forgive the overpayments by approving the increases from fiscal years 2018 to 2022 and making that approval retroactive.
Correction, Nov. 10: This article was updated with the correct percentages of increases for the mayor and Town Council.