PREPARED BY: BRIAN HICKEY DATE OF MEETING: 10/21/2024
SUBJECT:
TITLE
ADOPTION OF ORDINANCE NO. 2024-005 OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AMENDING CHAPTER 2.40 OF THE SAN PABLO MUNICIPAL CODE TO INCREASE THE SALARIES OF ELECTED OFFICIALS (Continued from 10/07/2024)
CEQA: This proposed action is not a project as defined by CEQA.
Label
RECOMMENDATION
Recommendation
Waive second reading; adopt Ordinance
Body
Council Priority Workplan
Under Major Policy Area: Build a Healthy Community, Policy Item No. 120: Increase via future adopted Ordinance City elected officials' salaries, (with no changes to other benefits), to take effect when there is a minimum of one (1) Council member who commences a new term after November 2024 election pursuant to all applicable State law requirements; and Policy Item No.121: Explore the operational feasibility of staff bringing forward for 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 are adopted policy items in the adopted FY 2023-25 Council Priority Workplan, effective May 1, 2023.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA.
Background:
At the City Council meeting on September 3, 2024, the City Council directed staff to prepare an ordinance for the Council’s consideration that would increase salaries for City of San Pablo elected officials pursuant to California Government Code Sections 36516, 36516.5, and 36517. Pursuant to applicable state law, increases for all five (5) members of the City Council would take effect as of the new terms of office for three (3) of those members beginning in December 2024, following the November 5th election. Salary increases for the City Clerk and City Treasurer would similarly take effect at the beginning of their next terms of office in December 2026, following the November 2026 election.
The City Council is requested to adopt the attached Ordinance which was first reviewed and introduced on September 16, 2024.
Salaries for City Council Members
San Pablo Municipal Code Section 2.40.040 sets the current salary of City Councilmembers at $1,094 per month. This salary was last increased in 2018, 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 year. Proposed increases beyond that amount require a vote of the electorate. Such increase are required to be calculated without compounding. Government Code Section 36516.5 restricts compensation changes until one or more members of the city council begins a new term of office. Accordingly, the proposed increase would become effective in December 2024, following the November 5th election.
A five percent (5%) non-compounded annual increase results in a maximum salary adjustment from $1,094 to $1,422 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.
Salaries for the Elected City Clerk and City Treasurer
San Pablo Municipal Code Section 2.40.010 establishes current salaries for the City Clerk and City Treasurer at $240 per month. No health and welfare benefits are provided to any City Clerk or City Treasurer elected after November 2010. The positions are now considered largely ceremonial with appointed staff fulfilling most of the statutory duties.
The proposed Ordinance uses the same formula of five percent (5%) per year, non-compounded, to increase the salaries of the elected City Clerk and City Treasurer to $312 per month. However, the City Council is authorized under California Government Code Section 36517 to use any other formula it deems appropriate.
Fiscal Impact:
Annual budgeted expenses (salaries only) for five (5) City Councilmembers for FY 2024-25 total $65,640 annually, and for the City Clerk and City Treasurer at $5,760 annually which are contained in the adopted FY 2025-26 Two-Year Biennial General Fund (GF) Operating Budget, effective July 1, 2024.
If the City Council proceeds with the +30% maximum salary adjustment allowed by State law from the last amendment in 2018 via future adopted ordinance, then a corresponding maximum +30% increase in annual salaries for all City Elected Officials (i.e., City Council, Elected City Clerk, Elected City Treasurer) would become effective during the next elective terms of office, and result in a corresponding net annual GF budget impact FY 2024-25 and FY 2025-26 periods, as follows:
Elected City Council (Salary Only): (Effective December 2024)
FY 2024-25 Annual Salaries Cost: $65,640 (Adopted)
Annual Salaries Cost: $85,332 (Amended +30% maximum)
Net Annual Budget Impact: ($19,692)
• Total FY 2024-25 GF Annual Budget Impact: ($19,692)
• Total FY 2024-25 GF Net Budget Impact: ($11,487) for Dec. - June 2025)
Elected City Clerk & City Treasurer (Salary Only): (Effective December 2026)
FY 2025-26 Annual Salaries Cost: $5,760 (Adopted)
Annual Salaries Cost: $7,488 (Amended +30% maximum)
Net Annual Budget Impact: ($1,728)
• Total FY 2025-26 GF Annual Budget Impact: ($1,728)
• Total FY 2025-26 GF Net Budget Impact: ($1,008) for Dec. - June 2026)
City Manager Operating Contingency Reserve (Fund: 190)
If the City Council elects to proceed with the proposed 2024 salary adjustment for all City Elected Officials via adopted Ordinance, then the corresponding total net GF budget increase to the FY 2024-25 period would be $11,487, and for FY 2025-26 would be $20,700, with both annual net GF budget (non-budgeted) expenses to be appropriated from the City Manager Operating Contingency Reserve (Fund: 190). A resolution would be prepared following Ordinance adoption to formally appropriate funds from Fund 190 to cover said net GF expenses for FY 2024-25 period.
ATTACHMENTS:
Att A - Ordinance 2024-005