§ 31.03 COMPENSATION.
   (A)   City Council shall establish the compensation of every elected city officer not later than the first Monday in May in the year in which the officer is elected. An elected officer's compensation shall not be changed after his election or during his term of office.
      (1)   In order to equate the compensation of mayors and councilmembers with the purchasing power of the dollar, the Department for Local Government computes by the second Friday in February of every year the annual increase or decrease in the consumer price index of the preceding year by using 1949 as the base year in accordance with § 246 of the Constitution of Kentucky, which provides that the mayor in cities of the first class shall be paid at a rate no greater than twelve thousand dollars ($12,000) per annum and mayors in cities other than the first class and councilmembers shall be paid at a rate no greater than seven thousand two hundred dollars ($7,200) per annum.
      (2)   The City Council shall set the compensation of these officers in accordance with KRS 83A.070 at a rate no greater than that stipulated by the Department for Local Government. The Mayor and the City Council salaries shall automatically be adjusted annually in accordance with cost of living/consumer price index calculation by the Department for Local Government.
      (3)   Effective January 1, 2017, the compensation for a member of City Council shall be $250 per month. And, effective January 1, 2019, the compensation for the Mayor shall be $500 per month.
   (B)   The City Council shall fix the compensation scale of appointed, full-time city officers and employees by ordinance and may change it by ordinance.
   (C)   Employee and full-time non-elected officer compensation shall be established by the Mayor in accordance with the compensation scale set by City Council.
   (D)   All fees and commissions authorized by law shall be paid into the city treasury for the benefit of the city and shall not be retained by any officer or employee.
                               
Statutory reference:
   Compensation, see KRS 83A.070 and 83A.075