Fremont City Council Meeting: 04/09/24 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Code Adoptions & Amendments
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5128) DOC ID: 5128
Updated: 4/4/2024 3:06 PM by Susan Gauthier Page 1
ADJUSTMENT TO THE SALARIES OF THE MAYOR AND COUNCIL MEMBERS - Introduce an Ordinance Amending Fremont Municipal Code Section 2.05.060, and Authorizing a Salary Increase for the Mayor and Council Members Contact Persons:
Name: David Persselin Allen DeMers
Title: Finance Director Deputy City Manager
Div/Dept: Finance Department City Manager's Office
Phone: 510-494-4631 510-494-4651
E-Mail: [email protected] [email protected]
Executive Summary: Fremont Municipal Code Section 2.05.060 (the “Municipal Code”) establishes the salaries of the Councilmembers and Mayor and the 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 5, 2024 election.
BACKGROUND: Section 2.05.060 of the Municipal Code establishes the salaries of the Councilmembers and Mayor and the 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 September 6, 2022, the City Council adopted an ordinance amending the Municipal Code to increase compensation to the current level of $2,427.76 per month for Councilmembers and $4,313.28 per month for the Mayor. The current salaries for the Councilmembers and Mayor became effective upon seating of the Councilmembers elected on November 8, 2022.
California Senate Bill 329, effective January 1, 2024, amended California Government Code Section 36516 to permit adjustments to city council salaries by an amount not exceeding the greater of either five percent for each calendar year from the operative date of the last adjustment of the salary, or based on inflation as measured by the Consumer Price Index, which shall not exceed 10 percent for each calendar year.
As the City Council will soon be adopting the FY 2024/25 operating budget and a new City Council will be seated following the November 5, 2024 election, it is appropriate at this time to consider adoption of an ordinance amending the Municipal Code to increase salaries for Council Staff Report (ID # 5128) Meeting of April 9, 2024 Updated: 4/4/2024 3:06 PM by Susan Gauthier Page 2
the Councilmembers and Mayor as authorized under Government Code Section 36516, as amended by Senate Bill 329.
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 2022 through February 2024 at an annualized rate of 3.60%. This annualized rate is less than the 4% limit specified in th e Municipal Code.
Applying the Consumer Price Index annualized rate of 3.6% over the two-year period from December 2022 to December 2024 would result in the Councilmembers’ salaries increasing from $2,427.76 per month to $2,602.56 per month and the Mayor’s salary increasing from $4,313.28 per month to $4,623.83 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 2024. The cost of the increased salaries woul d total approximately $9,515 in FY 2024/25. If approved, staff will incorporate these changes into the proposed FY 2024/25 General Fund operating budget.
ENVIRONMENTAL REVIEW: Action on this item is exempt from the requirements of the California Environmental Quality Act (CEQA), per CEQA Guidelines Section 15378(b), as an administrative and/or fiscal activity that does not involve commitment to a specific project that will result in any significant physical impact on the environment.
ATTACHMENTS:
• Draft Ordinance Mayor and Council Compensation Increase
RECOMMENDATION: Introduce an ordinance amending the Fremont Municipal Code to authorize an increase in the salary of the City Councilmembers to $2,602.56 per month and of the Mayor to $4,623.83 per month, effective after the new City Council is seated following the election of November 5, 2024.