DATE: September 12, 2023
DEPARTMENT: CITY ATTORNEY’S OFFICE
FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
TITLE: CALIFORNIA SB 329 (DODD): CITY COUNCIL COMPENSATION RECOMMENDED MOTION:
It is recommended that the Finance Committee consider whether to recommend that the City Council take action to increase Council member compensation.
EXECUTIVE SUMMARY:
On June 29, 2023, Governor Newsom signed SB 329 (Dodd) into law which amended Government Code section 36516 thereby allowing cities to adjust Council member compensation to reflect inflation as measured by the California Consumer Price Index. Increases would require a majority vote of the City Council. A copy of SB 329 is attached to this Report for reference.
BACKGROUND:
On June 29, 2023, Governor Newsom signed SB 329 into law, allowing general law cities to increase Council member compensation. The State Legislature last adjusted these amounts in 1984.
Salinas is a charter city and, therefore, this new law applies to Salinas because Charter Section 5.3 authorizes the City Council to be compensated in an amount authorized by State law for cities of a similar size, with additional compensation for the Mayor:
Section 5.3 Compensation
The monthly salary of the Mayor and the members of the City Council shall be set by ordinance. The monthly salary shall not exceed the amount authorized by State law for cities of a similar size; provided however, that the salary of the Mayor may be set at a higher amount that the salary of the members of the City Council.
Salinas Municipal Code section 2-01.02 sets the current amounts of compensation for the Mayor and Council members:
Sec. 2-01.02. City Councilmember compensation.
Members of the city council shall receive as compensation for their services a monthly salary of six hundred dollars each and the mayor shall receive a monthly salary of eight hundred dollars.
Compensation for the council and for the mayor may be increased beyond the amount provided for in this section by an ordinance or an amendment to this section, provided the total amount of compensation, and the percent of any increase, shall not exceed the compensation and increase as provided for in Government Code Section 36516.
Pursuant to Government Code section 36516(a)(2)(E), the compensation for Salinas Council members may be up to and $2,550 per month, and may be increased beyond that if the increase does not exceed (1) an amount equal to 5% for each calendar year from the operative date of the last adjustment of the salary (not compounded); or (2) an amount equal to inflation since January 1, 2024, based on Consumer Price Index (CPI). .
Ultimately, the City Council has options: The City Council could choose not to increase City Council compensation, could choose not to increase City Council compensation at this time, or could choose to increase City Council compensation by a lesser than the maximum amount permitted.
This bill was sponsored by Cal Cities (formerly League of California Cities). A copy of Cal Cities’ June 14, 2023, letter is attached to this Report for reference.
STRATEGIC PLAN INITIATIVE:
An increase to the City Council’s compensation would support the City Council’s Goal of an effective and culturally responsive government.
DEPARTMENTAL COORDINATION:
The City Attorney’s Office, City Manager’s Office, and City Clerk’s Office will coordinate on presenting this item to the full City Council, with the Finance Committee’s recommendation, and will prepare any FISCAL AND SUSTAINABILITY IMPACT:
An increase to the City Council’s compensation would have an impact to the City’s General Fund.
ATTACHMENTS:
SB 329
Cal Cities’ June 14, 2023 Letter to Governor Newsom
Resolution No. 11970; November 13, 1984
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CITY OF SALINASFINANCE COMMITTEE STAFF REPORTCITY OF SALINASFINANCE COMMITTEE STAFF REPORT
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