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IC 36-4-7-3 says the Council must approve salaries:
(b) Subject to the approval of the city legislative body, the city executive shall fix the compensation of each appointive officer, deputy, and other employee of the city. The legislative body may reduce but may not increase any compensation fixed by the executive. Compensation must be fixed under this section not later than September 30 of each year for the ensuing budget year.
IC 36-4-8-12 says a Mayor can't sign a contract that exceeds what is appropriated to pay for it. The Council sets appropriations:
City works board; long term contracts; bond issuance by a department; void obligations
Sec. 12. (a) This section does not prohibit:
(1) the city works board from making long term contracts for utility services under IC 36-9; or
(2) a department from issuing bonds or other obligations authorized by law.
(b) A city department, officer, or employee may not obligate the city to any extent beyond the amount of money appropriated for that department, officer, or employee. An obligation made in violation of this section is void.
IC 36-8-22-14 says the Mayor can't sign a collective bargaining agreement that obligates the City to spend more than it has available:
Deficit financing prohibited
Sec. 14. (a) As used in this section, "deficit financing" means making expenditures that exceed the money legally available to an employer in any budget year.
(b) An employer may not enter into an agreement under section 12 of this chapter that will place the employer in a position of deficit financing. An agreement is voidable to the extent that an employer must engage in deficit financing to comply with the agreement.
IC 5-10-6-1 says the Council has exclusive authority to grant vacation, sick leave, etc to city employees:
(b) Employees of the political subdivisions of the state may be granted a vacation with pay, sick leave, paid holidays, and other similar benefits by ordinance of the legislative body of a county, city, town, township, or controlling board of a municipally owned utility, board of directors or regents of a cemetery, or board of trustees of any library district.