Fremont City Council Meeting: 07/12/22 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Code Adoptions & Amendments
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4487) DOC ID: 4487
Updated: 7/7/2022 11:47 AM by Alberto Quintanilla Page 1
ADJUSTMENTS TO THE SALARIES OF THE MAYOR AND COUNCIL MEMBERS - Introduce an Ordinance Amending the Fremont Municipal Code Section 2.05.060 and Authorizing a Salary Increase for the Mayor and Council Members Contact Persons:
Name: David Persselin Brian Stott
Title: Finance Director Assistant City Manager
Div/Dept: Finance Department City Manager's Office
Phone: 510-494-4631 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: Fremont Municipal Code Section 2.05.060 (the “Municipal Code”) specifies the salaries of the Councilmembers and Mayor and establishes a process for reviewing and implementing compensation increases.
This report provides information supporting a salary increase for the new City Council that will be seated following the November 8, 2022 election.
BACKGROUND: The Municipal Code specifies the salaries of the Councilmembers and Mayor and establishes a process for reviewing and implementing compensation increases:
“Compensation increases shall be reviewed during each budget cycle and increases shall be considered commensurate with the Consumer Price Index – All Urban Consumers, San Francisco-Oakland-Hayward in an amount not to exceed 4%. Any increase to the Councilmembers’ salaries shall become effective only upon commencement of a new Council term of office following adoption of an ordinance authorizing the increase. Any increase to the Mayor’s additional compensation (the amount that exceeds the Councilmembers’ salary amount) shall become effective as set forth in the ordinance adopting the increase.”
On June 12, 2018, the City Council adopted an ordinance amending the Municipal Code to increase compensation to the current level of $2,247.93 per month for Councilmembers and $3,993.78 per month for the Mayor. The current salaries for the Councilmembers and Mayor became effective upon seating of the Councilmembers elected on November 6, 2018.
The next increase would have become effective upon seating of the Councilmembers elected on November 3, 2020. However, no compensation increase was recommended due to the FY 2020/21 budget balancing actions taken to address the fiscal impact of the coronavirus pandemic.
As the City Council has now adopted the FY 2022/23 operating budget and a new City Council will be seated following the November 8, 2022 election, it is appropriate at this time to consider adoption of an ordinance amending the Municipal Code to increase salaries for the Councilmembers and Mayor.
Staff Report (ID # 4487) Meeting of July 12, 2022
Updated: 7/7/2022 11:47 AM by Alberto Quintanilla Page 2 DISCUSSION/ANALYSIS: Based on the most recent information from the U.S. Bureau of Labor Statistics, the Consumer Price Index – All Urban Consumers, San Francisco-Oakland- Hayward, has increased from December 2020 through April 2022 at an annualized rate of
5.43%. This annualized rate exceeds the 4% limit specified in the Municipal Code.
Applying the maximum allowable annualized rate of 4% over the two-year period from December 2020 to December 2022 would result in the Councilmembers’ salaries increasing from $2,247.93 per month to $2,427.76 per month and the Mayor’s salary increasing from $3,993.78 per month to $4,313.28 per month.
This annualized rate does not exceed the 4% limit specified in the Municipal Code and is consistent with California Government Code section 36516, which provides for salary increases in an amount not to exceed five percent per calendar year since the last adjustment of salary.
FISCAL IMPACT: Salary increases would become effective upon the seating of the newly elected City Council in December 2022. The cost of the increased salaries would total approximately $9,790 in FY 2022/23. If approved, staff will make appropriate adjustments to incorporate these changes into the FY 2022/23 General Fund operating budget.
ENVIRONMENTAL REVIEW: None.
ATTACHMENTS:
• Draft Ordinance Mayor and Council Compensation Increase
RECOMMENDATION: Waive full reading and introduce an ordinance amending the Municipal Code to authorize an increase in the salary of the City Councilmembers to $2,427.76 per month and of the Mayor to $4,313.28 per month, effective after the new City Council is seated following the election of November 8, 2022.