Elected city officers; fixing of annual compensation; determining increases or decreases in compensation

Sec. 2. (a) As used in this section, "compensation" means the total of all money paid to an elected city officer for performing duties as a city officer, regardless of the source of funds from which the money is paid. The term includes all employee benefits paid to an elected city 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 city 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 section 4 of this chapter. (b) The city legislative body shall, by ordinance, fix the annual compensation of all elected city officers. An ordinance adopted under this subsection that fixes the annual compensation of an elected city officer shall provide for an annual, monthly, or biweekly salary schedule. An elected city officer is not required to report hours worked and may not be compensated based on the number of hours worked. (c) The compensation of an elected city 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.