Michael McGlothlin to Receive Around $300k for Palm Coast City Manager Job

UPDATE: McGlothlin’s contract was amended by the Palm Coast City Council before its approval on Tuesday. Where it concerns compensation, a clause for extra pay during emergencies was removed.

The contract for Michael McGlothlin has him making around $300,000 in annual compensation to come on as Palm Coast City Manager. His base pay amounts to only $225,000 in annual salary, but additional benefits and allowances increase the number significantly. Variables in the compensation package make it impossible to know exactly how much he’ll take home annually with all factors included.

McGlothlin was appointed the next Palm Coast City Manager in a unanimous vote by the City Council in November. He was chosen over David Fraser, the other finalist candidate. Though it was a mere 3-2 majority who preferred McGlothlin, all five Council members agreed that McGlothlin was a worthwhile choice and so they agreed to vote in unison once the majority opinion became clear.

The previous Palm Coast City Manager, Denise Bevan, received a base salary of $175,000. Interim City Manager Lauren Johnston was paid $189,000 as she was performing both the job duties of the city manager and the responsibilities of her normal role as assistant city manager.

Standard Compensation

Counting the payment figures which are absolute and invariable, McGlothlin’s pay comes out to $269,250 per year. That’s $225,000 from his annual salary, plus a 401(a) retirement plan which will receive $38,250 yearly – equivalent to 17% of his annual salary. It also includes a monthly car allowance of $500, which works out to $6,000 per year.

McGlothlin will have another 457(b) retirement plan which opens him up to further compensation. He’ll have the ability to contribute up to 2% of his annual salary ($4,500) to that fund and be matched by the city. If he contributes less than 2%, he’ll be matched to whatever amount he does contribute, per a city spokesperson. He can contribute more than 2% if he chooses, but the City of Palm Coast’s matching contribution will cap out at 2%.

Also included in McGlothlin’s compensation package is an undefined annual stipend for phone and data usage. No number was included in his contract, but the language indicated that the stipend may be amended periodically via city policy.

Benefits and Emergency Overtime

The rest of McGlothlin’s pay comes from benefits. He’ll be eligible for the City of Palm Coast’s group health and benefits program at the same levels provided to the assistant city manager and other department heads within the city government. If McGlothlin selects a plan for himself and a spouse, the city would be paying either $21,251.40 or $24,242.04, depending on which of two plans he chooses.

According to a city spokesperson, McGlothlin will also have his monthly premiums covered by the city. That’s another $980.88 or $1,506 added to the healthcare costs for the two available employee/spouse options. All in all, Palm Coast will likely be paying $22,232.28 or $25,748.04 for McGlothlin’s health coverage.

Depending on which plan he chooses, and assuming he is contributing the full 2% to his 457(b) retirement plan and selecting one of two employee/spouse coverage health plans, McGlothlin’s full compensation from the City of Palm Coast should be approximately $295,982.28 to $297.992.04.

Furthermore, McGlothlin can accumulate both vacation time and sick leave on a per pay-period basis. He’ll be front-loaded 40 hours of vacation time, and his sick leave will accrue at the same level as the city’s department heads. Once his contract terminates, he’ll be eligible for a payout of up to 320 hours for vacation and sick time each, meaning an extra 640 hours worth of pay. That would amount to $69,228.80 at his hourly rate of $108.17. Because the length of McGlothlin’s contract is uncertain (he’ll remain employed as long as the City Council will have him), it’s impossible to accurately forecast how much additional money that will yield him if calculated annually.

In perhaps the most unique element of McGlothlin’s contract, he’ll be entitled to compensation for hours worked beyond his normal workload in times of a local state of emergency or disaster event. For Flagler County, this would almost certainly mean a hurricane. He’d receive 100% of his $108.17 hourly wage for extra hours under these conditions.

Severance and Annual Raises

Should McGlothlin be terminated, he’ll be paid his severance in one lump sum within 45 days of his last day on the job contingent on him releasing the city from liability for the nature of his termination. He’ll be given twenty weeks of his base salary (which may change between now and then), as well as all accrued benefits. McGlothlin will also receive the monetary equivalent of one year of health and dental coverage, equal to the coverage offered to full-time city employees.

By October 1st each year, the City Council will evaluate McGlothlin’s performance. If they choose, they can award him a pay raise of no more than 2%. To give McGlothlin this raise will require nothing more than a majority vote.

“Mr. McGlothlin demonstrated a clear understanding of Palm Coast’s needs and a strong dedication to public service,” Palm Coast Mayor Mike Norris said in a prepared statement last month. “We look forward to the experience, professionalism, and steady leadership he will bring to our organization.”