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HomeMy WebLinkAbout2013-06-11 - AGENDA REPORTS - COUNCILMEMBER COMPENSATION (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approval: Item to be presented by: Ken Striplin DATE: June 11, 2013 SUBJECT: CONSIDERATION OF COUNCILMEMBER COMPENSATION PER GOVERNMENT CODE 36516 DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council provide direction to staff regarding Councilmember compensation. BACKGROUND In compliance with the Government Code, Councilmember compensation has historically been reviewed and adjusted every two years, and the last adjustment occurred on July 1, 2012. Council compensation was last reviewed in May 2011, and at that time the Council decided to increase compensation by a total of 10% for the four-year period covering July 1, 2008 through June 30, 2012. This increase was less than the 5% per year allowed by Government Code and followed a four-year period of no adjustment to Councilmember compensation. Continuing with the regular bi-annual schedule, Councilmember compensation could be reviewed now for consideration and a possible increase effective July 1, 2014. Members of the Santa Clarita City Council are compensated monthly by the City, under specific provisions of state law, for the substantial amount of time and effort they contribute leading our local government. In addition to participating in regular meetings of the City Council, Members of the City Council represent the City on regional and statewide boards, commissions and organizations, participate in a wide variety of community events, and often meet with constituents on issues of concern to residents of Santa Clarita. Government Code Section 36516(c) sets forth basic provisions which allow regular adjustments to the City Council compensation. Government Code Section 36516.5 requires that City Council compensation adjustments be adopted by the present City Council, to be effective for future City 9�DD,9I,I:,::; s; . 1i. �' Councils, and provides for Councilmember compensation to be increased up to 5% for each calendar year from the operative date of the last adjustment to salary. The last City Council compensation adjustment took place on July 1, 2012. With the exception of the 2012 increase, which averaged 2.5% for each of the four years, Council salary has more typically been adjusted by 5% for each eligible year. Keeping with this practice, Councilmember salary could be increased by 5% for the period July 1, 2012 through June 30, 2013, and an additional 5% increase for the period July 1, 2013 through June 30, 2014, resulting in a 10% non -compounded increase effective July 1, 2014. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT The current Council compensation is $1,728.84 per month. If the City Council chose to increase compensation up to 5% a year since the date of the last increase as allowed by state law, the new rate of pay would be $1,901.72 per month effective July 1, 2014, resulting in a monthly increase of $172.88 per council member or an annual increase to the City budget of $10,372.80. ATTACHMENTS California Government Code 36516 and 36516.5 California Government Code 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 hundred dollars ($300) per month. (B) In cities over 35,000 up to and including 50,000 in population, up to and including four hundred dollars ($900) per month. (C) In cities over 50,000 up to and including 75,000 in population, up to and including five hundred dollars ($500) per month. (D) In cities over 75,000 up to and including 150,000 in population, up to and including six hundred dollars ($600) per month. (E) In cities over 150,000 up to and including 250,000 in population, up to and including eight hundred dollars ($800) per month. (F) In cities over 250,000 population, up to and including one thousand dollars ($1,000) 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. (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 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. 36516.5. 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.