(A) As used in this section:
COMPENSATION. 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 division (D).
(B) The Town Council shall, by ordinance, fix the compensation of its own members and the Town Clerk-Treasurer. An ordinance adopted under this division 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 Town Council 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 year 1980.
(D) The Town Council 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 town-owned utility or function.
Subject to the approval of the Town Council, 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.
(I.C. 36-5-3-2) (‘84 Code, § 31.01)