PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 09/08/2026
SUBJECT:
TITLE
CONSIDER AUTHORIZATION TO PROCEED WITH A PROPOSED ORDINANCE AMENDING CHAPTER 2.40 OF THE SAN PABLO MUNICIPAL CODE TO INCREASE THE ANNUAL SALARIES OF CITY COUNCILMEMBERS FOR THE NEXT ELECTED TERM OF OFFICE IN DECEMBER 2026 PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36516(A)
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Receive presentation; provide direction via minute order.
Body
Compliance statements
FY2025-27 CITY COUNCIL PRIORITY WORKPLAN
Under Major Policy Area: Build a Healthy Community, Policy #118 - Explore the operational feasibility of staff bringing forward of council consideration every two-years beginning in the fall of 2026 an ordinance to increase city elected officials’ salaries, with no other changes to benefits, to be considered by future adopted ordinance at least 60 days in advance of every subsequent municipal election held after the November 2024 election, and before the sitting of the next elected council per all applicable state law requirements as an adopted policy item in the adopted FY 2025-27 Council Priority Workplan, effective April 7, 2025.
BACKGROUND:
All City Council members, as well as the elected City Clerk and elected City Treasurer, serve as part-time elected officials pursuant to the San Pablo Municipal Code.
Elected Officials’ Salary Adjustments
For general law cities in California, Section 36516(a) of the California Government Code limits salary increases for elected officials in cities with fewer than 35,000 residents to a maximum of 5% per year from the date of the last adjustment, with any adjustments adopted via Ordinance going into effect at the next elective term of office (i.e. December 2026). Any deviations from state law require a vote by the local electorate.
Senate Bill 329 Requirements (Approved June 29, 2023; Effective January 1, 2024)
Effective January 1, 2024, SB 329 (Stats. 2023, Ch. 27) amended California Government Code Section 36516 to change the limits on City Council salary increases. Pre-existing law authorized the City Council to increase Councilmember salaries by ordinance in an amount not exceeding 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the increase was enacted. Under the amended law, the City Council may now increase salaries by the greater of either: (1) a maximum of 5% for each calendar year from the operative date of the last adjustment, or (2) an amount equal to inflation since January 1, 2024, based on the California Consumer Price Index, not to exceed 10% for each calendar year. Existing law continues to provide the procedures by which a city may enact such ordinances and restricts when salary increases for city council members may take effect.
Since the California Consumer Price Index has not exceeded 5% for either of the last two (2) years, the maximum allowable increase since the City Council’s prior salary adjustment in October 2004 (pursuant to Ordinance 2024-005) is 5% per year, or 10% cumulatively for the two-year period.
Previous City Council Action on Salary Adjustments (2011 to Current)
Previously, the City Council adopted ordinances that limit compensation and benefits for all elected City officials, and in accordance with the State Public Employees’ Medical and Hospital Care Act (PEMHCA) regulations adopted in 2016, as follows:
1). Ordinance 2011-002 (Adopted 07/05/11): Established limits on medical in-lieu compensation, retirement and welfare benefits for City Council members pursuant to San Pablo Municipal Code (SPMC) Section 2.40.020(B); California Government Code Sections 36516 (d); 53208.5; 36516 (f); and PEMHCA regulations.
2). Ordinance 2014-11 (Adopted 10/06/14): Established salaries for City Council, City Clerk and City Treasurer pursuant to California Government Code Section 36516(b); limited health and welfare benefits to retired members of the City Council first elected on or after January 1, 2013, including but not limited to any city-paid supplemental to PEMHCA medical coverage, life insurance, dental coverage, or any other health and welfare benefit during retirement; provided that City shall pay for the health and welfare coverage of each City Clerk and City Treasurer elected prior to November 2010, during their terms of office, to the same extent as provided for members of the City Council; no City Clerk or City Treasurer first elected on or after November, 2010 shall be entitled to any city-paid health or welfare benefits during retirement, including but not limited to any city-paid supplemental to PEMHCA medical coverage, life insurance, dental coverage, or any other health and welfare benefit during retirement.
3). Ordinance 2014-014 (Adopted 10/20/14): Increased the City Clerk’s salary to four hundred ($400) dollars per month for the 2014-2018 term of office, and reduced the Clerk’s salary to two hundred ($200) dollars per month thereafter.
4). Ordinance 2018-004 (Adopted 09/17/18): Increased the salaries of members of the City Council to one thousand ninety-four dollars ($1,094) per month beginning in December 2018, and increased the salaries of the City Clerk and City Treasurer to two hundred and forty dollars ($240) per month.
5). Ordinance 2024-005 (Adopted 10/06/24): Increased the salaries of members of the City Council to one thousand four hundred twenty-two dollars ($1,422) per month beginning in December 2024, and increased the salaries of the City Clerk and City Treasurer to two hundred and forty dollars ($312) per month beginning new elective terms of office in December 2026.
Proposed 2026 Salary Adjustment for City Elected Officials
The City Council may direct staff to draft an ordinance to raise salaries for San Pablo elected officials, as outlined under adopted Policy #118 of the FY 2025-27 Council Priority Workplan as noted above and in accordance with California Government Code Sections 36516 and 36516.5.
Pursuant to applicable state law, increases for all five (5) members of the City Council would take effect as of the new elective term of office for those newly elected members beginning in December 2026, following certification of the November 3, 2026 election results. Salary increases for the elected City Clerk and City Treasurer would not be considered for a salary adjustment for their next elective terms of office in December 2026 due to an existing +30% salary adjustment scheduled for December 2026 following the City Council’s previous adoption of Ordinance 2024-005 in October 2024 (See Attachment).
Proposed 2026 Salary Adjustment for City Council Members
San Pablo Municipal Code Section 2.40.040 sets the current salary of City Councilmembers at $1,422 per month. This salary adjustment was last increased in October 2024, as automatic cost-of-living adjustments for elected councilmembers are not permitted by state law. Pursuant to California Government Code Section 36516, the City Council of a general law city may increase its salary up to five percent (5%) each calendar year (or in an amount equal to the California Consumer Price Index if greater, but in no event more than 10% per year). Proposed increases beyond that amount require a vote of the electorate. California Government Code Section 36516.5 restricts compensation changes until one or more members of the city council begins a new term of office. Accordingly, if the City Council provides formal direction via majority vote, then a proposed +10% increase would become effective via adopted Ordinance beginning the next elective term of office in December 2026, following the November 3, 2026 election.
A five percent (5%) non-compounded annual increase results in a maximum +10% salary adjustment from $1,422 per month to $1,565 per month. This amount would be in addition to reimbursement for actual expenses and health and welfare benefits already provided pursuant to Chapter 2.40 of the San Pablo Municipal Code.
Recent Labor Market Data Survey of Councilmembers’ Salaries
In August 2026, at time of agenda preparation, City Manager/HR staff conducted a salary survey of compensation of other City Council (elected officials) within the Contra Costa County region for comparative purposes (See Attachment).
FISCAL IMPACT:
All salary costs for City elected officials are included in the Adopted FY 2026-27 and FY 2027-28 General Fund Operating Budget, effective July 1, 2026. All current annual budgeted expenses (i.e., City Council salaries only) for five (5) City Councilmembers at $1,422 each per month for FY 2026-27 totals $85,313 annually (100-1110-41000). The annual salaries for the Elected City Clerk and City Treasurer are currently $240 each per month, rising to $312 each per month (per Ordinance 2024-005) effective December 2026, totaling $5,772 annually resulting in a ($1,001) budget shortfall due to the forthcoming salary adjustment in December 2026. Any unexpected or uncalculated salary expenses not budgeted will be handled at the Mid-Year Budget Cycle during FY 2026-27 (100-1110-41000).
If adopted by City Council, any Ordinance which goes into effect would result in a +10% maximum salary increase under State law from $1,422 per month to $1,565 per month which would be considered an unforeseen, non-budgeted expense which results in a total budget impact of $90,297 annually, resulting in a net budget increase of approximately +$5,000 for the remainder of FY 2026-27 period.
City Manager Operating Contingency Reserve (Fund: 190)
If the future Ordinance is adopted, the City Manager must allocate one-time funds in an amount of $5,000 from the FY 2026-27 City Manager Operating Contingency Reserve (Fund 190) for this unplanned expense. Contingent with Ordinance adoption, a Resolution will be prepared to formally appropriate these funds for the rest of FY 2026-27 period.
ATTACHMENTS:
Att A. Adopted Ordinance No. #2024-005 (Adopted in October 2024
Att B. Contra Costa County Cities’ Survey of Current Compensation and Benefits for City Council (Updated August 2026)