City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager |
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Prepared by: |
Cassandra Candini-Tilton, City Clerk and David Nefouse, City Attorney |
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Date: |
April 2, 2024 |
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Subject: |
Update on Senate Bill 329 |
Recommendation:
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Receive and File update on Senate Bill 329 pertaining to City Council Compensation.
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Background:
The law governing council compensation for general law cities is set forth in Government Code Section 36516 (Section 36516). Under existing law, a City Council is authorized to adopt an ordinance establishing a salary for each member of the City Council based upon the size of the population of the city, as specified. Section 36516 also provides a separate process of establishing compensation though a ballot measure.
On June 29, 2023, Governor Gavin Newsom signed Senate Bill 329 ("SB 329") into law. This bill modified Section 36516(a)(2) to increase the maximum amount that general law cities can pay councilmembers based on the city's population, as determined by the most recent federal census. In explaining the reason for the change, the legislature stated that the existing compensation levels based on population had not been adjusted since 1984 (40 years), and that "allowing cities to adjust their compensation for inflation may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families." In other words, the legislature felt there was a need to update the numbers after 40 years, and there was a desire to encourage participation by individuals who might otherwise be discouraged from running for office due to the low pay and commitment.
Pursuant to Government Code 36516(a)(2), the new salary limits are as follows:
• Up to $950 per month for cities up to and including 35,000 in population.
• Up to $1,275 per month for cities over 35,000 up to and including 50,000 in population.
• Up to $1,600 per month for cities over 50,000 up to and including 75,000 in population.
• Up to $1,900 per month for cities over 75,000 up to and including 150,000 in population.
• Up to $2,550 per month for cities over 150,000 up to and including 250,000 in population.
• Up to $3,200 per month for cities over 250,000 in population.
Based on the most recent federal census, the City of Manteca would be authorized to set a council salary of up to $1,900 per month. Also, during the budget process staff will benchmark other local jurisdictions benefits and allowance plans.
Under existing law, once a salary level has been established it may be increased in future years through the adoption of another ordinance, but only by an amount not to exceed 5% for each calendar year from the date of the last salary adjustment. SB 329 modifies this calculation, so that now any future increase cannot "exceed the greater of either of the following (Pursuant to Government Code 36516 (a)(4)).
(A) An amount equal to 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.
(B) 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."
SB 329 also adds some new language to Section 36516 as to the process that must be followed in adopting a compensation ordinance. Specifically, before an ordinance can be adopted it must be considered in open session for at least two regular meetings. At the first regular meeting, the ordinance may be introduced, but there must be findings in the record that demonstrate the need for the increased compensation. At the second regular meeting, the council may then consider whether to adopt the ordinance. Although there is normally a five-day waiting period between the introduction and adoption, SB 329 requires that the second meeting must be held at least seven days after the first meeting.
It is important to note that when a city has an elected mayor, as is the case in Manteca, California, Government Code 36516.1 applies. That section states that an elected mayor "may be provided with compensation in addition to that which he or she receives as a council member. That additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election." There is nothing in SB 329 that modifies this section, so it continues to apply. What this means is that, in addition to the compensation received by the other council members, the city council has the discretion to provide additional compensation to the person elected to serve as Mayor.
It is important to note, however, pursuant to California Government Code Section 36516.5 any council salary increase that may be adopted can only take effect when at least one member of the council commences a new term. This remains the law even after SB 329. So even if an ordinance is adopted now, any change in compensation would not take effect until after the November 2024 general election is certified.
The last City Council increase was applied in December 2020, when the City Councilmembers at that time voted the new base pay amount for City Councilmembers in Manteca and all other cities of 75,000 to 150,000 population to $600 per month or $7,200 per year per member at the time this amount was in accordance with Government Code 36516. Before the City Council increase was applied in December of 2020, it had not been updated since September of 2001 that amount was $500.
This report provides an update to the City Council regarding Senate Bill 329 and how it could impact the City Council compensation.
Fiscal Impact:
No Fiscal Impact at this time.
Documents Attached:
1. Attachment 1 - Updated Government Code 36516 per SB 329