HomeMy Public PortalAbout22) 8B 2nd Reading & Adoption of Ord 12-954 Council CompensationCity Council
May 15, 2012
Page 2
adoption by the City Council.
ANALYSIS:
During its last regular meeting, the members of the City Council requested that the City
Attorney's Office prepare a proposed Ordinance adjusting the City compensation
consistent with Government Code section 36156.
Government Code section 36156, in relevant part provides:
"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."
Government Code, section 36516.5, provides that changes to Council salaries may only
take effect in years of a Council election . This section states, in relevant part:
"A change in compensation does not apply to a councilman during his term
of office; however, the prohibition herein expressed shall not prevent the
adjustment of the compensation of all members of a council serving
staggered terms whenever one or more members of such council becomes
eligible for a salary increase by virtue of his beginning a new term of
office ."
It is a common misconception that adjustment in council salaries cannot apply to seated
councilmembers . Government Code section 36516.5 expressly provides that when one
or more members of the Council (new or existing) begin a new term, (i.e., after a regular
election) then every councilmember is eligible for the adjusted compensation.
Section 605 "Compensation of Councilmen" of the City's Charter provides:
"Compensation of councilmen, other than reimbursement for expenses,
may be established in the manner and amount as provided by general
law, relating to councilmanic [sic) salaries in general law cities in this
state."
The California Attorney General has opined that this provision allows City Councils to
increase the existing compensation by an amount equal to five percent (5%) multiplied
by the number of years since the last request.
L6. #4616-4795-1631 v1
City Council
May 15, 2012
Page 3
Council may adopt the proposed ordinance at any time prior to the next regular election ,
provided the ordinance becomes effective prior to election day. Here, the proposed
ordinance is structured to take effect thirty days after adoption, but by operation of
section 36516.5, the salary increase will not take effect until the first pay period after the
seating of a new councilmember or the confirmation of the new term of an existing
councilmember in March of 2013.
The current compensation of $480 per month (i .e ., $5,760 per year) was established in
2003. The next adjustment to Council compensation will take effect, if approved, in
March of 2013. Therefore, ten years will have elapsed between adjustments. Applying
the rule established in Section 36516, the Council compensation may be increased by a
maximum of 50% (i.e., 5% x 10 years). If a 50% increase is applied to the existing
compensation of $480 per month, the resulting monthly compensation would be $720
per month (i.e., $480 x 50%= $240; $480 + $240 = $720) or $8,640. Accordingly, the
proposed Ordinance has been prepared to increase the Council compensation to $720
per month.
It should be noted that the City currently and appropriately pays the Council salaries in
the same method it pays City employees, by issuance of a check every two weeks (i.e.,
26 checks per year). As a result, any Councilmember or member of the public
comparing checks issued by the City for compensation would see an amount of
approximately $221.54 per pay period. There is no discrepancy, as this amount
rounded equals the same annual authorized payment of $5,760.
CONCLUSION:
The City Council is requested to waive further reading and adopt Ordinance No. 12-
954, amending Section 2101 "Council Expenses and Compensation" of Chapter 1 "City
Council" of Title 2 "Administration" of the Temple City Municipal Code.
FISCAL IMPACT
Adoption of Ordinance No. 12-954, will result in an increase of $2,880 in compensation
for each Council person per Calendar year, or $14,400 in total for the City . Other
benefit amounts paid by the City to Councilmembers that are based on a percentage of
compensation may increase slightly based on the proposed compensation increase.
A TT ACHMENT(S)
A . Ordinance No . 12-954 .
LA #4816-4795-1631 v1
EXHIBIT "1"
Proposed Ordinance No. 12-954
LA#4616-4795-1631 Y1