AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: KIMBERLY BOLES
SENIOR DEPUTY CITY CLERK
SUBJECT:
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PUBLIC HEARING - INTRODUCTION OF ORDINANCES TO ADJUST CITY COUNCIL, CITY CLERK, AND CITY TREASURER COMPENSATION, AND A RESOLUTION ADOPTING A POLICY IMPLEMENTING A PROCEDURE FOR THE PERIODIC REVIEW OF CITY COUNCIL, CITY CLERK, AND CITY TREASURER COMPENSATION ADJUSTMENT
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Summary:
At the City Council meeting of April 9, 2024, the City Council directed staff to prepare an adjustment to compensation for the City Council, City Clerk, and City Treasurer. Additionally, the City Council requested a draft policy to review future adjustments on a regular basis to align with the two-year budget cycle, and the City’s General Municipal Elections in even-numbered years. The City Council will consider adjusting compensation levels for members of the City Council, City Clerk, and City Treasurer and review the draft policy addressing future compensation adjustments.
Form of Notice: The City published the notice in the Signal Tribune newspaper on May 17, 2024. The City published the notice in accordance with Signal Hill Municipal Code Section 1.08.010 at City Hall, the Signal Hill Public Library, Discovery Well Park, and Reservoir Park on or before May 17, 2024.
Strategic Plan Goal(s):
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendations:
1. Introduce an Ordinance, entitled:
AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF SIGNAL HILL, CALIFORNIA, ADJUSTING COMPENSATION FOR CITY COUNCIL MEMBERS IN ACCORDANCE WITH STATE LAW
2. Introduce an Ordinance, entitled:
AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF SIGNAL HILL, CALIFORNIA, ADJUSTING COMPENSATION FOR CITY CLERK AND CITY TREASURER IN ACCORDANCE WITH STATE LAW
3. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF SIGNAL HILL, CALIFORNIA, ADOPTING A POLICY IMPLEMENTING A PROCEDURE FOR THE PERIODIC REVIEW OF CITY COUNCIL, CITY CLERK, AND CITY TREASURER COMPENSATION ADJUSTMENTS
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Fiscal Impact:
There is no fiscal impact for Fiscal Year 2023-2024. If approved by the City Council, the cost of the proposed increase to annual compensation for Fiscal Year 2024-2025 would be $5,385. The proposed increase would become effective in December 2024 following the November 5, 2024, General Municipal Election.
Background:
At the City Council meeting of April 9, 2024, the City Council reviewed and discussed compensation adjustments and timeline for future adjustments. The City Council directed staff to schedule and notice a public hearing during a future City Council meeting to adjust the City Council, City Clerk, and City Treasurer compensation. Additionally, the City Council directed staff to draft a policy addressing the timeline for future compensation adjustments to align with the two-year budget cycle and the City’s General Municipal Election.
The City Charter provides that City Council, City Clerk, and City Treasurer compensation may be periodically adjusted by ordinance. California State law provides that charter cities are not limited in the compensation that may be paid to members of the City Council. Notwithstanding its ability to adjust compensation levels differently from General Law cities, the Signal Hill City Council voluntarily follows State compensation levels for General Law cities.
Government Code Section 36516 establishes compensation levels for city councils based on the population of the city and allows for annual increases equivalent to a five percent adjustment in salary for each calendar year from the operative date of the last salary adjustment. The adjustment is a percentage-based calculation, and the five percent increments cannot be compounded. The Government Code provides that a salary adjustment may only become effective upon the beginning of a new term of office of one or more of the members of the City Council.
In 2019, the City Council approved a compensation adjustment from $667.44 to $694.14 per month effective December 8, 2020, following the General Municipal Election on November 3, 2020. In 2021, the City Council approved a compensation adjustment from $694.14 to $722.18 per month effective December 13, 2022, following the General Municipal Election on November 8, 2022. As a result, the total increase since 2019 equals $54.74 per month.
Government Code Section 36517 authorizes the City Council to increase the salary of the City Clerk and City Treasurer by ordinance or resolution. The compensation levels for City Clerk and City Treasurer were last adjusted in 2021. In 2021, the City Council approved a compensation adjustment from $421.20 to $438.22 per month for these two elected positions, following the General Municipal Election on November 8, 2022.
Analysis:
As noted above, the Government Code allows for compensation levels to be increased in five percent annual increments and cannot be compounded. Since the last increase occurred on December 13, 2022, the City Council, City Clerk, and City Treasurer salaries may be increased by a total of ten percent (i.e. 5% per year x 2 years = 10%). Based on this calculation the maximum adjustment for City Councilmember compensation would equate to an increase of $72.22 for a new monthly compensation level of $794.40 per month. The City Clerk and City Treasurer salaries may be increased by $43.82 per month for a new monthly compensation level of $482.04 per month. This potential increase would bring the monthly salaries for the City Council, City Clerk and City Treasurer per month as follows:
On June 29, 2023, Governor Newsom signed into law Senate Bill 329 (SB329) which increases the maximum amount of salary that council members may receive. SB 329 amends Government Code section 36516 to increase salaries based on the population of the City. For example, cities up to and including 35,000 in population, are authorized for increases beyond the specified maximum referenced above, to either five percent for each operative date of the last adjustment or an amount equal to inflation since January 1, 2024. The increase is aligned with the California Consumer Price Index, not to exceed 10% per calendar year.
The Government Code stipulates that a salary adjustment may only become effective upon the beginning of a new term of office for one or more of the council members. The next term would commence after the November 5, 2024, General Municipal Election results are certified, and as a result, the increase would be effective December 10, 2024.
Adjusting compensation of the City Council, City Clerk and City Treasurer in a timely manner increases the efficiency of municipal operations and ensures that compensation reflects the dedication and service required for effective governance. The City Council requested staff to draft a policy to consider future compensation adjustments biennially, aligning with the two-year budget adoption process and the City’s General Municipal Election. The City Council will review the draft policy prepared by the City Attorney’s office (Attachment A).
Next Steps:
Staff recommends the City Council introduce each ordinance increasing compensation for the City Council, City Clerk and City Treasurer (Attachments B &C). If introduced, the ordinances would be properly noticed and agendized for the upcoming June 11, 2024, City Council meeting for adoption; and provide any changes to the draft policy or adopt as written.
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Ordinance Adjusting City Council Compensation
B. Ordinance Adjusting City Clerk and City Treasurer Compensation
C. Resolution Adopting a Policy Implementing a Procedure for the Periodic Review of City Council, City Clerk, and City Treasurer Compensation Adjustment