§ 31.02 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 Governor’s Office for Local Development 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 section 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 $12,000 per annum and Mayors in cities other than the first class and Councilmembers shall be paid at a rate no greater than $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 Governor’s Office for Local Development.
   (B)   The City Council shall fix the compensation of each appointed city officer by ordinance and may change it by ordinance.
   (C)   The City Council shall establish the compensation of city employees in accordance with the personnel and pay classification plan ordinance of the city.
   (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