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STAFF REPORT
TO: Mayor and Members of the City Council
FROM: Christopher J. Diaz, City Attorney
VIA: Dan Barros, City Manager
MEETING DATE: September 25, 2024
SUBJECT: Study Session: Council Salaries
RECOMMENDATION
None. This item is a study session. Council is being asked to provide staff with comments, questions, and feedback.
EXECUTIVE SUMMARY
A councilmember recently inquired with staff about holding a study session to obtain the City Council’s input on considering an increase to the Council’s current salary of $961 per month. The increase of City Council salaries is governed by state law pursuant to Government Code Section 36515. This section generally limits increases to no more than 5% per year from the last increase in salary. The City Council last increased the City Council’s salary in 2018 through its adoption of Ordinance No. 784 which increased the City Council’s salary at the time by 4% from $924 to $961 per month.
FISCAL IMPACT
Any City Council decision to increase the Council salary would have a fiscal impact on the Town in terms of increased compensation for councilmembers, but funds have been included in the FY 24-25 budget for any increase in salary.
ENVIRONMENTAL
The City Council’s direction or decision to increase its salary is exempt from environmental review under the California Environmental Quality Act pursuant to CEQA Guideline 15378 as it is more akin to a government fiscal activity, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
ANALYSIS
Government Code Section 36516 allows the City Council to increase the salaries of council members by an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary. Under this formula, the Council may adopt an ordinance ITEM #8
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this year increasing the salary of council members by 30% (5% per year times six calendar years since December 2018, which was the operative date of the last salary increase). Under Government Code § 36516.5, a change in compensation of a council member does not become effective until one or more members of the council begins a new term of office. When at least one council member begins a new term, all members are entitled to the adopted increase in compensation. Thus, if the City Council approves an increase, it would become effective at the time of the swearing in of a new council in December 2024.
In 2018, the City Council was eligible for a 20% increase since the last adjustment was in 2014 (5% per year for four years). At the time, the City Manager recommended, and the City Council agreed, to only take a 4% increase changing the salary from $924 per month to the current $961 per month. This 4% increase was based on salary increases for all Town employees that were provided in 2018 with 2% in January 2018 and 2 % in July 2018 for a total of 4%.
If the City Council opts to take the full legally allowable 30% increase, it would adjust the current Council salary from $961 per month to $1249 to month. The City Council could choose to increase its salary consistent with the first increase for all employees which is 3.8%. An adjustment of
3.8% would adjust the current Council salary from $961 per month to $997.
The City Council should direct staff on any potential increase in Council salary. The City Council could opt to maintain the current Council salary of $961 per month. It can also adjust the salary by as little as 1% to as high as 30%.
Council Adopted Values
The City Council’s decision to consider an adjustment to the Council salary is consistent with the Council value of vision as it ensures the City Council is looking to the future to keep the Council salary at an appropriate amount and that the amount does not fall too far behind based on inflation and other factors.
Alternatives
The City Council could choose not to adjust the Council salary amount if desired and forgo the study session. Either way, staff is seeking clear direction from the City Council on any adjustment and any adjustment percentage.
CONCLUSION
The City Council should discuss and provide direction on any adjustment in Council salary.