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additional general fund expense of approximately $78,000 per year for salary increases for all councilmembers. If approved by Council, an adjustment of approximately $78,000 will be included in the Fiscal Year 2024/25 mid-cycle budget.
Background and Analysis
On June 29, 2023, Governor Newsom signed Senate Bill 329 (SB 329) into law amending Government Code Section 36516, which allows the first increase to the city councilmembers pay maximums since 1984. SB 329 acknowledges that the then existing compensation schedule had not kept pace with inflation and attempts to provide equitable compensation for councilmembers based on the population of their respective cities.
SB 329 allows cities to compensate councilmembers at a salary level that enables them to balance careers and personal obligations with their dedicated commitment to serve the community. Effective January 1, 2024, the maximum allowable compensation rates are as follows:
City Population Salary Cap
(per month)
Up to and including 35,000 $950
Over 35,000 up to and including 50,000 $1,275
Over 50,000 up to and including 75,000 $1,600
Over 75,000 up to and including 150,000 $1,900
Over 150,000 up to and including 250,000 $2,550
Over 250,000 $3,200
According to the United States Census Bureau, the estimated population of the City of Citrus Heights as of July 1, 2022, is 86,433, placing the Citrus Heights councilmember’s salary maximum at $1,900 as of January 1, 2024. SB 329 allows an increase to the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill allows councilmember salaries to be increased beyond the specified maximums in the future to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last salary adjustment in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill requires the City Council to consider adopting an ordinance to increase councilmember compensation in open session during at least two regular meetings of the City Council.
The staff recommendation is to increase councilmember’s monthly salary to the maximum allowable amount of $1,900 per month ($22,800 per year). To do so, the Council must make certain factual findings as to why such an increase is necessary and in the public interest. This salary increase is needed to address inflation as Council’s salaries have not been adjusted since 1997, and adequately compensating councilmembers for the large number of hours spent by local elected officials in the performance of their duties is in the public interest. In addition to participating in regular meetings of the City Council, councilmembers represent the City on ITEM 14 Agenda Packet Page 146
Subject: Ordinance Regarding City Council Compensation
Date: April 11, 2024
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regional and statewide boards, commissions and organizations, participate in a wide variety of community events, and often meet with constituents on issues of concern to residents of Citrus Heights.
Higher pay can help remove financial barriers that may prevent individuals from running for office. This can make council positions more accessible to a wider range of people, including those from lower-income backgrounds, promoting greater socioeconomic diversity among elected representatives. It can also help bridge a gap for someone considering a city council position where they may need to reduce the number of hours they work or that their business is open to the public in order to carry out their duties as an elected official.
Government Code Section 36516.5 prohibits any change in compensation during the current Council’s term of office, but that all councilmembers may receive the same increase when any member becomes eligible. Therefore, the ordinance will become operative when a new member of the City Council is sworn into office or when a member of the City Council begins a new term.
Additionally, staff recommends reviewing Council compensation every two years, when the Council considers the biennial budget, for consideration of any future adjustments bound by the existing formula set forth in Government Code section 36516, as allowed by state law and at the discretion of City Council.
Attachment
1. Ordinance No. ___ Ordinance Amending Citrus Heights Municipal Code Section 2-32 Regarding City Council Compensation
ITEM 14 Agenda Packet Page 147
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ORDINANCE NO. 2024-___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AMENDING CITRUS HEIGHTS MUNICIPAL CODE SECTION 2-32
REGARDING CITY COUNCIL COMPENSATION
WHEREAS, Government Code Section 36516(a)(2) permits the City Council to establish by ordinance compensation to be paid to each councilmember up to a ceiling based on the city’s population;
WHEREAS, on January 9, 1997, the City Council adopted Ordinance 97-11, which set the City Council’s monthly compensation at $600 per month pursuant to the provisions of Government Code Section 36516(a)(2) based on a population;
WHEREAS, in June 2023, Governor Gavin Newsom signed into law Senate Bill 329 (“SB 329”), which amends California Government Code Section 36516 to update city council compensation schedules to account for inflation. The previous compensation schedules, which are based on population, had not been adjusted since 1984;
WHEREAS, the legislative intent of SB 329 is to help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families;
WHEREAS, California Government Code Section 36516 provides a method by which salaries for members of a city council are established based on city population; WHEREAS, according to the United States Census Bureau, the estimated population of the City of Citrus Heights as of July 1, 2022, is 86,433;
WHEREAS, under SB 329, city council salaries in cities with populations between 75,000 and 150,000 can be up to and including $1,900 per month;
WHEREAS, the City Council of the City of Citrus Heights makes the following findings in support of raising City Council salaries to $1,900, as allowed by SB 329:
i. Higher pay can help remove financial barriers that may prevent individuals from running for office. This can make council positions more accessible to a wider range of people, including those from lower-income backgrounds, promoting greater socioeconomic diversity among elected representatives.
ii. Increasing compensation recognizes and compensates city councilmembers for their substantial workload. Serving on the city council requires significant time and effort.
Councilmembers are responsible for attending meetings, conducting research, engaging with constituents, and making important decisions that directly impact the community.
ITEM 14 Agenda Packet Page 148
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WHEREAS, California Government Code Section 36516.5 provides that a change in salary for each city council member does not take effect until one or more members of the city council begins a new term of office; and
WHEREAS, the new salary for each City Council member would go into effect beginning on the date on which a City Council member is sworn into office after the general municipal election held in November 2024.
THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS DOES ORDAIN AS FOLLOWS:
The provisions of Chapter 2, Article II of the City of Citrus Heights Municipal Code are amended, as follows:
SECTION 1. Amendment. Section 2-32 of the Citrus Heights Code is hereby repealed and replaced to read as set forth below:
2-32 Compensation. In accordance with Government Code § 36516, the compensation of the members of the city council shall be $1,900 per month, each, payable monthly.
SECTION 2. Severability. If any section, subdivision, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.
SECTION 3. Effective Date and Notice. This ordinance shall take effect thirty (30) days after its adoption, provided it is published in full or in summary within fifteen (15) days of its adoption, in a newspaper of general circulation published and circulated in the City of Citrus Heights.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights this _____ day of ______ 2024 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
ITEM 14 Agenda Packet Page 149