BACKGROUND:
Salaries for the City Council are established through the City Charter adopted by the voters in 2016:
Section 605. City Council Salaries.
The then-current salary of the Mayor, Mayor Pro Tem and Council Members shall be reviewed and adjusted annually beginning with the first pay period after July 1 of each year based on the change in the consumer price index for all urban consumers (CPI-U) for the Los Angeles-Riverside-Orange County, CA average for all items, 1982-84=100, as published by the U.S. Department of Labor’s Bureau of Labor Statistics or the most closely equivalent successor thereto in the event the index is terminated or changed.
The “base index” for the adjustment shall be the index for December 2015. Regardless of the CPI-U, in no case shall the salaries be increased by more than 3% in any given year or exceed a maximum of $2,500 per month.
Staff provided an update presentation to Council during the study session on August 23, 2023. Council asked that additional comparative data be gathered on non-salary compensation including medical and other benefits and stipends or reimbursements.
DISCUSSION:
The following table provides a ten-year history of Council salaries. Since the Charter was approved and became effective, there has been a CPI increase each year. Please note that in 2020 Council authorized a ten percent reduction in salaries as part of the COVID budget reductions. That cut was restored and the Charter authorized CIP increases were added in 2021.
ANNUAL
SALARY
EFFECTIVE
DATE
16,439.71 07/09/2023
15,960.88 07/10/2022
15,496.00 07/01/2021
13,659.52 07/05/2020
15,177.21 07/14/2019
14,735.16 07/01/2018
14,305.95 07/02/2017
14,025.44 07/05/2016
14,025.44 07/05/2015
14,025.44 07/05/2014
The following table provides comparison data on Council salaries paid by the other Coachella Valley cities. The table also provides information on medical benefits, retirement benefits and auto and technology stipends.
CITY SALARY/STIPENDS
BENEFITS
ELIGIBLE FOR
AUTO
ALLOWANCE
CELL PHONE
ALLOWANCE
CATHEDRAL
CITY
Council - $16,439.71 annually Health Benefits
Life/Disability/AD&D
CalPERS
$200 monthly Reimbursement
up to $1800 per
FY
PALM
SPRINGS
Mayor - $49,920.00 annually
Council - $41,604.00 annually
Health Benefits
Life Insurance
CalPERS
$200 biweekly None
DESERT HOT
SPRINGS
Mayor - $17,151.36 annually
Council - $13,339.44 annually
$75- Per Board/Committee
meeting (where no stipend is
provided)
Health Benefits
Life Insurance
CalPERS
$600 monthly $144 monthly
RANCHO
MIRAGE
Mayor - $38,500 annually
Council - $35,000 annually
$50- Per Housing Authority
meeting
$50- Per Library & Observatory
Board meeting
Health Benefits
Life/AD&D
CalPERS
$500 monthly $100 monthly or
elect a city issued
device
PALM
DESERT
Council - $27,357 annually
$50- Per Housing Authority
Meeting
Health Benefits
Life/Disability/AD&D
CalPERS
None $40 monthly or
elect a city issued
device
INDIO Council - $16,073.64 annually
$100 stipend for specific outside
meetings
Health Benefits
CalPERS
Reimbursement
for travel mileage
None
LA QUINTA Mayor - $33,600.00 annually
Council - $27,600 annually
Health Benefits
CalPERS
None $40 monthly or
elect a city issued
device
COACHELLA Council - $8532.60 annually Health Benefits
Life Insurance
CalPERS
None $200 monthly
INDIAN
WELLS
Mayor - $24,120.72 annually
MPT - $20,100.48 annually
Council -16,080.60 annually
None None None
Should the Council decide to amend the Charter and revise Council salaries, the following procedure will be required to do so:
“Under Section 3 of article XI of the California Constitution and Government Code 34450 et seq., the process to amend a City Charter follows one of two methods. One method is for the registered voters of the City to elect commissioners to a charter commission which is responsible for drafting a proposed amendment that is then submitted to the registered voters for approval. See Government Code sections 34450- 34457. The alternative method, which was the method Cathedral City followed to adopt its Charter, is for the City Council to agree upon a proposed Charter amendment which is then submitted to the registered voters of the City for approval. See Government Code sections 34458.
Using the alternative method, at a regular Council meeting, the City Council would discuss the issue and text of a proposed Charter amendment and approve text for consideration by the public. Pursuant to Government Code section 34458, the Council must then hold two separate public hearings on the issue and content of the proposal.
Notice of each public hearing must be published in a newspaper of general circulation within the City, and posted in three places within the City, both for 21 days prior to the each public hearing. In addition, the second public hearing must be held at least 30 days after the first public hearing. At least one of the public hearings must be held outside of normal City business hours to facilitate public participation. Then, 21 days following the second public hearing the City Council may vote on whether to approve the proposed Charter amendment. If approved by the City Council, the proposed amendment must be submitted to the voters at the next established statewide general election date pursuant to Election Code section 1200 provided there are at least 88 days before the election. The approved Statewide election date is the first Tuesday, after the first Monday in November of each even-numbered year. A majority of electors voting on the question must vote in favor for it to be passed.
If the amendment proposes to authorize the City Council to have the power to raise its own compensation and the compensation of other City Official without voter approval that must be specified in the ballot description. The City must also comply with certain procedural rules. See Government Code sections 34458.5, 34459, and 34460.” One option the Council may wish to consider is to tie the Council benefits package to certain benefits provided in the regulations covering non-represented employees.
Salaries would, of course, still be regulated by the Charter provisions and certain stipends are expressly prohibited. Otherwise, the benefits and other compensation provisions of the regulations would be provided to Council and a statement to that effect would be added to the regulations. The provisions of the regulations covering non- represented employees that could be expressly tied to the Council as well are the following:
3.17 Car Allowance
11.1 Group Insurance
11.2 PERS
11.5 Enrollment in Group Insurance Plans upon Retirement
11.6 Wellness Program
11.7 Life Insurance
11.8 Deferred Compensation
The City Attorney has provided the following analysis of stipends that are regulated by state law and therefore, cannot be provided.
In accordance with subsections (a) and (b) Section 36516 of the Government Code, Cathedral City Charter Section 605 provides that "in no case shall the salaries [of Council Member] be increased by more than 3% in any given year or exceed a maximum of $2,500 per month." Additional compensation to city council members, e.g., stipend for attending a meeting, in excess of the salary limits established in subsections (a) and (b) of Section 36516 of the Government Code is prohibited, unless another statute expressly authorizes a stipend or other compensation to its board members.
As such, an entity may authorize stipends for Councilmembers who serve on a board, commission, advisory board, etc., only if the governing statue expressly authorizes a stipend. However, absent a statute authorizing a stipend or compensation, the City Council is prohibited from approving stipends for Council participation on city boards and/or commissions in excess of the compensation limits set forth in Government Code section 36516.
For example, pursuant to its bylaws, the Southern California Association of Governments is an agency voluntarily established by its members pursuant to the Joint Exercise of Powers Act. Because the Joint Exercise of Powers Act does not expressly authorize compensation or stipend to a member of a JPA board, representatives of Regional Council members who serve on the Regional Council for the Southern California Association of Governments, are prohibited from receiving a stipend or compensation.
Therefore, unless a statute authorizes a stipend or compensation, pursuant to Government Code Section 36516(c), City councilmembers are prohibited from approving stipends that exceed the compensation established Cathedral City Charter Section 605 and subsections (a) and (b) Section 36516 of the Government Code.
Any allowable changes the Council wishes to enact will need to be formally adopted on a future Council agenda.
FISCAL IMPACT:
None with this discussion item. Council salaries are budgeted in accordance with Charter provisions.
FIVE-YEAR STRATEGIC PLAN:
GOAL A: SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity and inclusion driven employee programs and employee experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated and respected public stewards.
Action A-2 Review Comparison data on Council salaries and the process to update if warranted.