334738.1
Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: {{section.number}}A
Yountville Town Council Staff Report
DATE: January 16, 2024
TO: Mayor and Town Council
FROM: Gary Bell, Town Attorney; Celia King, Administrative Services Director PREPARED BY: Gary Bell, Town Attorney; Celia King, Administrative Services Director
RECOMMENDATION
Introduce and waive the first reading of Ordinance Number 24-527 authorizing a salary adjustment for Mayor and Town Council members to be effective upon commencement of new councilmember terms following certification of the November 2024 election and amending Municipal Code section 2.04.090 to authorize annual salary adjustments up to 10% equal to inflation.
DISCUSSION/BACKGROUND
California Government Code Section 36516 governs council member salaries and authorizes the Town to enact an ordinance establishing the salaries subject to restrictions in the Code. The Town Council first established council member salaries in Ordinance 165 on January 10, 1984.
State law stipulates that changes in council member salaries only take effect after the general municipal election when at least one council member begins a new term. Therefore, any increase in council member salaries will not take effect until after the November 2024 election and at the start of the new terms. The increase will not apply to the currently seated council but the newly constituted council after a municipal election involving the election of council members.
California Government Code Section 36516 previously permitted municipalities with a population of less than 35,000 to enact an ordinance providing councilmembers up to $300 per month in salary with future increases limited to 5% for each calendar year from the operative date of the last adjustment.
The enactment of Senate Bill (SB) 329 effective January 1, 2024, amends both the base salary and amount of calendar year increases permissible for councilmembers. SB 329 permits municipalities with a population of less than 35,000 to provide councilmembers up to and including $950 per month. In addition, SB 329 authorizes the salary of councilmembers to be increased beyond the cap by an amount not exceeding the greater of either:
• 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted; or
• an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.
The Town Council last adjusted council member salaries in November 2019 by Ordinance No. 19-483 at $777 per month. Prior to that, the last time council member salaries were increased was in November 2016 by 334738.1
Ordinance No. 16-450 at $648 per month.
The maximum salary increase permitted by the prior version of California Government Code 36516 and the current version of Yountville Municipal Code Section 2.04.090 is 5% per calendar year since the last salary adjustment. In November 2024, it will be approximately four (4) calendar years since the last salary adjustment for a maximum salary adjustment factor of 20% or $155.40 per month (777 x .20 = 155.40). Therefore, if the Town Council does not adopt the new base salary of $950 permitted by SB 329, the maximum salary for the Mayor and Council Members may be adjusted to $932.40 per month (777 + 155.40 = 932.40). Staff recommends the Town Council adopt a new base salary of $950 as authorized by SB 329, effective January 1, 2024, and authorize an annual increase of 5 to 10% to account for annual changes in inflation every calendar year thereafter.
As the Town is currently in its budget development process now is the appropriate time for the Town Council to evaluate if it wishes to make any adjustments to the amount of council salary so that it can be incorporated in the annual operating budget.
Current Council Salary and Benefits: In accordance with current Town Council polices, council members receive:
A monthly salary of $777.
A $1,800 Technology Stipend once every three (3) years. Reimbursement for eligible work-related expenses.
A $25,000 Life Insurance Policy.
Are eligible to participate in the Town’s deferred compensation program with a town paid match of $25 per month.
Are eligible to enroll in the Town’s employee health plan coverage at their option with the town providing payment for “employee only” portion up to 90% of employee cost the and any additional costs to add other enrollees are the responsibility of the council member. Council Members are not eligible for retiree medical health insurance continuation after leaving office. Councilmembers who do not participate in the Town’s health insurance program may receive a maximum of $6,000 per year of reimbursement on actual costs for health and welfare benefits. Are eligible to enroll in the Town’s employee dental insurance program at their option with the town providing payment for “employee only” portion up to 100% of employee cost the and any additional enrollee costs are the responsibility of the council member. Are eligible to participate in the Town’s vision insurance reimbursement program and may receive a total maximum of $500 per year of reimbursement on actual costs of vision insurance. Are eligible to join the Town’s wellness program and may receive $50 per month for reimbursement on actual costs for participation in a recognized health and fitness center a minimum of 8 times per month. Are eligible for a maximum of $80 per month of reimbursement on actual costs of a cellphone plan.
Effective November 2024 when the salary increase takes effect, the increased cost to implement this salary increase for upcoming Fiscal Year 2024/25 is $6,055 for the seven (7) months and $10,380 each year thereafter.
The Town Attorney’s Office has reviewed the content and format of the proposed draft ordinance for conformance with State law.
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3)
FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? Yes
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Where is it Budgeted? General Fund Town Council/Mayor Department 01-1001-4011 Is it Mandatory or Discretionary? Discretionary
Is there a Staff Resource Impact? No
STRATEGIC PLAN GOAL
Is item Identified in Strategic Plan? Yes
If yes, Identify Strategic Goal and Objective. Responsible Fiscal Policy: The Town maintains its fiscal health through policies designed to maximize economic opportunities, manage expenses, and ensure prudent reserves.
Visionary Leadership: The Town's leadership maintains an open-minded, forward-thinking decision-making process. We value engagement and participation from all members of the community as we work together to create policies and plan for the future.
Briefly Explain Relationship to Strategic Plan Goal and Objective. Elected officials serving the Town often incur costs associated with their service and the current level of salary may or may not offset the costs of such service.
From a public engagement point of view there can be concern about whether too low a salary serves to discourage those who may want to serve while yet balancing what is an appropriate level of compensation for a part-time position.
ALTERNATIVES
Make no changes to the level of Council salary and leave it at $777 per month and retain existing Municipal Code authorization for 5% annual adjustments.
Adopt proposed Ordinance changing the monthly amount to $950 per month and amend the Municipal Code to authorize annual adjustments of up to 10% to account for inflation.
Direct staff to revise proposed Ordinance with an increase of less than $173 per month and/or amend the Municipal Code to authorize annual adjustments equal to inflation up to a lower percentage amount as may be determined by the Council.