But how much opportunity do they have for graft and corruption? Most of such money does not actually go through the mayor's bank account; instead, it is directed to people who then provide favors, e.g. employing his associates. Informal exchange of favors is the lifeblood of politicians.
You don't seem to be getting what motivates people to go into politics. They are not looking for ways to avoid involvement in corruption. The opportunity to be involved in the favors economy is most of the job's appeal. Paying them more would just cost more.