COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: September 1, 2026
SUBJECT: Adoption of Ordinance No. 2026 -09 Amending the Santa Maria Municipal Code Increasing City Council Salaries
Description:
The City Council will consider adopting Ordinance No. 2026 -09, amending the Santa Maria Municipal Code increasing City Council salaries.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Waive second reading and adopt Ordinance No. 2026 -09, Amending Chapter 2-2, “City Council Salaries,” Section 2-2.02, “Salaries Designated ” of the Santa Maria Municipal Code, increasing City Council salaries by $341.31 per month.
BACKGROUND:
City Council salaries have been increased only five times in the last four decades. The Council received a salary of $500 per month between 1986 and 2001. However, for a four-year period beginning in 1993 and running through 1996, the Council voluntarily reduced its salary by four percent during tight budget times. The City Council received $800 per month between 2001 and 2005. The Council salaries increased in 2005 to $920 per month, in 2008 to $1,050 per month, in 2016 to $1,313 per month and on March 15 , 2022, are currently set at $1,706.90.
On August 4 , 2026, City Council waived first reading and introduced said Ordinance amending section 2 -2.02 (salaries designated) of Chapter 2 -2 of the Santa Maria Municipal Code, increasing Council salaries by $341.31.
DISCUSSION:
Since the City of Santa Maria is a Charter City and the setting of Councilmembers' salaries are defined as a municipal affair, City Council has the authority to increase their salaries by either Charter authority or the Government Code. The salary of Councilmembers of general law cities is controlled by Government Code Section 36516(a), which permits a City Council to establish by ordinance a salary level up to a 2 ceiling determined by the city's population. The electorate may approve a hi gher salary. (Government Code § 36516(b)). A directly elected Mayor may receive additional compensation with the consent of the electorate or by ordinance of the City Council. (Government Code § 36516.1). Government Code Section 36516(c) allows the compensation of Councilmembers to be increased by five percent for each calendar year from the operative date of the last adjustment of the salary. Chapter 2-2 of the Municipal Code deals with City Council salaries.
It is the opinion of the City Attorney that "compounding" the salary each year from the last adjustment is not appropriate because it states the increase is five percent "each" year.
If it said five percent "per" year, it could be compounded.
It has been four calendar years since the Council's last salary increase. Therefore, an increase of $341.31 per month to a maximum salary of $2,048.28 per month per Councilmember would be lawful ($1,706.90 x 5 percent x 4 years= $341.31; $1,706.90 current salary + $341.31 increase = $2,048.28). Mayor would be entitled to an additional $250 to the $2,048.28 = $2,298.28.
According to Government Code Section 36516.5, any (Council) salary increase may take effect only when at least one member of the Council commences a new term. And while Santa Maria is a Charter City and the State Attorney General has stated that Charter Cities are exempt from the aforementioned Government Code section, because of a recent court case (Green Valley Landowners Assn. v. City of Vallejo [2015] 241 Cal.
App.4th 425, 436), the City Att orney recommends that any City Council salary increase not take effect until a Councilmember commences a new term which will be this December 2026.
Therefore, the authorizing ordinance shall make December 2026 the effective date.
Fiscal Considerations
Should Council decide to increase City Councilmembers and the Mayor's salaries, the annual increased costs to the budget would amount to $19,382.88 per fiscal year.
Impact on the Community
Increasing the Council's salaries to the maximum amount provided by law is still well below the value that the community receives from the benefit of having five dedicated individuals giving significant time in service to the community.
ATTACHMENT(S)
A. Ordinance No. 2026-09