HomeMy WebLinkAbout101023-03.3
STUDY STUDY SESSION MEMORANDUM 3.3
TO: Mayor and Town Council October 10, 2023
SUBJECT: Overview of SB 329 and Town Council Compensation
BACKGROUND
Compensation for city councilmembers in general law cities throughout California is
governed by Government Code Sections 36516 and 36516.5. Section 36516 sets a base
salary depending on the population of the city and allows for a 5% increase per year. Any
increases must be approved by ordinance-automatic increases are prohibited.
Section 36516.5 regulates the timing of any increase in compensation, providing that any
adopted increase in council compensation does not become effective until at least one
member of the council begins a new term of office. As a practical matter, this means that
any approved increase becomes effective after a council election and the swearing in of
those elected.
The Town Council’s current compensation is set at $1,261 per month. That amount was
set by the adoption of Ordinance No. 2022-04 and, pursuant to Government Code Section
365416.5, became effective in December 2022 after the last Council election.
DISCUSSION
The Legislature this year adopted SB 329, which amended Government Code Section
36516 for the first time since 1984. The bill (see attached), which becomes effective
January 1, 2024, makes several changes to the existing law:
• It increases the baseline salaries for all cities
• When going beyond the baseline, it now allows for increases based on the
California CPI (up to 10% per year), even if that amount exceeds the 5% per year
otherwise allowed.
• Any ordinance increasing Council compensation must contain findings
“demonstrating the need for the increased compensation.”
SB 329 2 October 10, 2023
Applying the new rules (which again, do not become effective until January 1), the new
baseline maximum salary for a city of Danville’s population would be $1,275, slightly
above the current salary of $1,261. The new provision allowing for an increase of CPI
cannot be quantified at this time as it will be dependent on increases after January 1. The
most recent CPI for California (June to June) was 3.1%. Using the 5% per year figure, an
increase of $126 would be allowed, bringing the monthly total to $1,387.
RECOMMENDATION
Provide direction to Town staff on how to move forward with an ordinance adjusting
Council compensation. Any change would be presented as an ordinance at a regular
Town Council meeting and would not become effective until December 2024.
Prepared by:
Robert B. Ewing
City Attorney
Attachment: Government Code Section 36516, as amended
SB 329 3 October 10, 2023
SECTION 1.
The Legislature finds and declares all of the following:
(a) The compensation schedule for general law cities has not been adjusted since 1984, meaning that
city council compensation has not kept pace with inflation.
(b) Allowing cities to adjust their compensation for inflation since 1984 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.
SEC. 2.
Section 36516 of the Government Code is amended to read:
36516.
(a) (1) A city council may enact an ordinance providing that each member of the city council shall
receive a salary based on the population of the city as set forth in paragraph (2).
(2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and
including three nine hundred fifty dollars ($300) ($950) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including four hundred
dollars ($400) one thousand two hundred seventy-five dollars ($1,275) per month.
(C) In cities over 50,000 up to and including 75,000 in population, up to and including five one
thousand six hundred dollars ($500) ($1,600) per month.
(D) In cities over 75,000 up to and including 150,000 in population, up to and including six one
thousand nine hundred dollars ($600) ($1,900) per month.
(E) In cities over 150,000 up to and including 250,000 in population, up to and including eight
hundred dollars ($800) two thousand five hundred fifty dollars ($2,550) per month.
(F) In cities over 250,000 population, up to and including one three thousand two
hundred dollars ($1,000) ($3,200) per month.
(3) For the purposes of this subdivision, the population of a city shall be determined by the last
preceding federal census, or a subsequent census, or estimate validated by the Department of
Finance.
(4) The salary of council members may be increased beyond the amount provided in this subdivision
by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not
exceed 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. No ordinance shall
be enacted or amended to provide automatic future increases in salary. the greater of either of the
following:
(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.
(5) No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council
members shall receive a salary for services, and the amount of that salary, may be submitted to the
electors. If a majority of the electors voting at the election favor it, all of the council members shall
receive the salary specified in the election call. The salary of council members may be increased
beyond the amount provided in this section or decreased below the amount in the same manner.
(c) Unless specifically authorized by another statute, a city council may not enact an ordinance
providing for compensation to city council members in excess of that authorized by the procedures
described in subdivisions (a) and (b). For the purposes of this section, compensation includes
payment for service by a city council member on a commission, committee, board, authority, or
SB 329 4 October 10, 2023
similar body on which the city council member serves. If the other statute that authorizes the
compensation does not specify the amount of compensation, the maximum amount shall be one
hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar
body.
(d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits
shall not be included for purposes of determining salary under this section, provided that the same
benefits are available and paid by the city for its employees.
(e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses
pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this
section.
(f) A city council member may waive any or all of the compensation permitted by this section.
(g) (1) For the purposes of this section, a city council shall consider the adoption of an ordinance to
increase compensation in open session during at least two regular meetings of the city council.
(2) At the first meeting, the city council shall present the proposed ordinance, which shall include
findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at
the first meeting.
(3) At least seven days after the first meeting, the city council shall hold a second meeting to consider
whether to adopt the ordinance.