Thomas “Tom” Markus, of Iowa City, Iowa, was one of three city manager finalists who met with Lawrence residents at a public reception Thursday, Dec. 17, 2015, at the Carnegie Building, 200 W. Ninth St.

City Commissioners unanimously approved a contract Tuesday for Lawrence’s new city manager, Tom Markus, agreeing to pay him approximately $205,000 total in salary and other compensation during his first year, plus benefits.

The commission selected Markus on Dec. 18, and after about a month of negotiations, publicly named him Jan. 14 during a special meeting at City Hall. Tuesday’s action formalizes the hire.

Markus, 64, is currently the city manager of Iowa City. He has more than 40 years of experience in municipal government.

“It’s a very good agreement,” Mayor Mike Amyx said Tuesday. “We look forward to Mr. Markus becoming our new city manager.”

Commissioners approved the contract without much discussion. It requires the city to pay Markus $190,000 in base salary.

He will also receive another $15,000 that will go into a deferred compensation fund in Markus’ first year. After his first year, the deferred pay will increase to whatever is the maximum amount of deferred payment allowed by law. Those maximums change annually. According to the Internal Revenue Service, the maximum amount of deferred compensation for 2015 and 2016 is $18,000, plus another $6,000 for those 50 and older.

City Attorney Toni Wheeler told commissioners that as part of the agreement, Markus would not seek a raise in base salary in his second year.

In addition to his base salary, deferred contributions and other, standard city employee benefits, Markus will be given an annual vehicle allowance of $6,000, bringing his total pay to $211,000 in his first year.

Thomas “Tom” Markus, of Iowa City, Iowa, was one of three city manager finalists who met with Lawrence residents at a public reception Thursday, Dec. 17, 2015, at the Carnegie Building, 200 W. Ninth St.

The city will also make annual $2,000 payments toward Markus’ life insurance policy.

The contract says the city will pay for Markus’ move to Lawrence, paying him up to $30,000 in reimbursements for moving costs.

Markus will be earning at least $10,000 more in base salary and deferred compensation in Lawrence than he is in Iowa City.

After five years in Iowa City, Markus makes $173,000 base salary, he said, and $22,000 more each year in deferred compensation.

“I can tell you, at this stage, that’s not the most important thing that determines what I do or don’t do,” Markus said of the earnings on Jan. 14.

Markus, who has worked as a city manager in various Midwestern cities since 1977, will also be making more than Lawrence’s former city manager Dave Corliss, who was with the city almost a decade before resigning last year.

Corliss, who left last June to take a job as town manager of Castle Rock, Colo., earned a base salary of $145,000 in 2014, and his gross wages were $187,785.

According to a survey from the International City/County Management Association, the average salary for city and county managers was about $111,000 in 2012. The average in 2012 for managers in cities with populations of 50,000 to 99,000 was about $148,400, according to the same survey.

Other Kansas cities with various populations differ in what they pay their city managers, anywhere from $141,000 in Manhattan to $213,000 in Wichita.

Robert Layton, the city manager of Wichita, earns a base salary of $213,000, according to an article by The Wichita Eagle. The Topeka Capital-Journal has reported Topeka City Manager James Colson earned a total $173,234 in 2013. Manhattan, which has about 30,000 fewer residents than Lawrence, pays its city manager, Ron Fehr, a base salary of $141,000, the Manhattan Mercury has reported.

According to a database from the Kansas Policy Institute, Olathe City Manager J. Michael Wilkes earned about $243,600 total in 2014. Shawnee City Manager Carol Gonzales earned about $172,400 total that same year, and Lenexa City Administrator Eric Wade made nearly $203,600 total.

Markus’ contract requires he establish residency in Lawrence within six months after the contract becomes effective.

Now that the contract has been approved, Markus will give his required 60 days notice to the city council in Iowa City. He is expected to start in his Lawrence position the week of March 21.

“On behalf of the city staff, we’re very excited to have Mr. Markus come on board,” said Interim City Manager Diane Stoddard.