DATE: August 15, 2023
TO: Honorable Mayor and City Council
FROM: Dominic Lazzaretto, City Manager
By: Justine Bruno, Deputy City Manager
SUBJECT: CITY COUNCIL COMPENSATION ADJUSTMENT PURSUANT TO ARCADIA CITY CHARTER SECTION 402
CEQA: Not a Project
Recommendation: Receive and file
SUMMARY
The Arcadia City Charter ties City Council compensation to the Government Code for General Law cities, which allows for compensation based on population thresholds. On June 29, 2023, Governor Newsom signed Senate Bill (“SB”) 329 to increase the compensation for City Council Members in California. This item is being brought forward to notify the City Council that their monthly salary is changing from $500 per month to $1,600 per month in accordance with new state law and the Arcadia City Charter. It is recommended that the City Council receive and file this report on the adjusted City Council compensation.
DISCUSSION
Since 1984, state law has limited the maximum salary amount for City Council Members in California. While inflation has been significant over time, the cap has been unchanged for nearly 40 years. For many legislators, the existing cap was viewed as a barrier to achieving equitable participation and diverse representation in local government. On June 29, 2023, Governor Newsom signed SB 329 to lift the cap on the maximum pay for Council Members and allow City Councils to adjust their maximum pay to keep pace with inflation moving forward.
The Arcadia City Charter automatically adjusts compensation for City Council Members in accordance with Government Code Section 36516, which was amended by SB 329.
This language is found in Section 402. Compensation of the Arcadia City Charter, which states:
City Council Compensation Adjustment
August 15, 2023
Section 402. COMPENSATION. Compensation for Council Members is hereby set, and from time to time shall be changed, in accordance with the schedule applicable to the City of Arcadia set forth in the provisions of the Government Code relating to salaries of Council Members in general law cities. Such compensation may be increased or decreased by an affirmative vote of a majority of the voters voting on the proposition at any election.
Section 36516 of the Government Code allows City Council Members to receive a salary based upon the population of a city. Under the new legislation, the salary amounts range from $950 per month for cities up to 35,000 in population, up to a maximum of $3,200 per month for cities over 250,000 in population (see the Attachment for the monthly salary amounts per population).
For Arcadia, the City Council currently receives a monthly salary of $500, or $6,000 annually. Based on a population of 56,681 from the 2020 Decennial Census and the new amendments to Government Code 36516, the Arcadia City Council fits into the category of cities with populations between 50,000 and 75,000, whose City Council Members are eligible for a salary of up to $1,600 per month.
Since Arcadia’s Charter automatically ties City Council compensation to Government Code Section 36516, no further action is needed by the City Council to update its compensation. The purpose of this staff report is to inform the City Council and the public of this change in state law and the corresponding compensation changes. In the future, under Government Code Section 36516, the City Council is authorized to increase its salary on an annual basis via ordinance, up to a maximum of 5% annually, or an amount equal to inflation under the California Consumer Price Index, beginning January 1, 2024.
Any compensation paid for City Council health or retirement benefits are excluded for the purposes of calculating the City Council’s monthly salary. Additionally, reimbursements for allowable expenses like City-sanctioned meetings or travel are also excluded from the calculation.
ENVIRONMENTAL ANALYSIS
The proposed compensation adjustment for City Council Members does not constitute a project under the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
For Fiscal Year 2023-24, the City Council is budgeted to receive a monthly salary of $500, or an annual compensation of $6,000. With this change to state law and Government Code, the monthly salary will increase to $1,600 per Council Member. Assuming
City Council Compensation Adjustment
August 15, 2023
application of the increase beginning in September, this change will result in an additional $55,000 of unbudgeted expense this Fiscal Year. In a typical budget year, a portion of funds remain unspent at the end of the year due to vacancies and other factors. For instance, the City Manager’s Office has had an extended vacancy, which creates capacity for the additional City Council salary expenses. Staff will monitor expenses in the General Fund budget and will bring forward a supplemental appropriation, if necessary.
RECOMMENDATION
It is recommended that the City Council determine this action does not constitute a project, and, therefore, is exempt under the California Environmental Quality Act (“CEQA”); and receive and file this report on the adjusted City Council compensation.
Attachment: Senate Bill No. 329