TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER
SUBJECT
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Mayor and Council Member Salaries.
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RECOMMENDATION
recommendation
1) Consider salary adjustments for the Mayor and City Council Members in accordance with Senate Bill 329 (Dodd); 2) approve the Introduction Ordinance No. 2024-011, amending Chapter 2.16.010 of the Chino Municipal Code (Mayor and Council Members), setting the monthly compensation for the Mayor at $3,348.53 and each of the four (4) Council Members at $2,796.26, to be read by number and title only, and waive further reading of the Ordinance.
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FISCAL IMPACT
Requires an appropriation of $65,427 from the unappropriated reserves of the General Fund for the remainder of fiscal year 2024/25. Ongoing, this adjustment will result in an annual salary increase of $94,507.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Responsible Long-Range Planning
• Exemplary Leadership
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Expenditure: 1002000-41010 |
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BACKGROUND
California Government Code Section 36516 provides guidelines for general law cities to enact ordinances to establish council salaries. On June 29, 2023, the Governor signed Senate Bill 329 (Dodd) amending the Code to modify the rules for council salaries, including the formulas to calculate increases to compensation.
Existing law authorizes a city council to enact an ordinance to provide each member of the council with a salary based on the population of the city. The existing compensation schedule in State law, which has not been adjusted since 1984, has not kept pace with inflation. SB 329 is intended to provide cities with the option to adjust council member compensation to account for inflation and support diversity in councils because increased compensation can help individuals from across different income levels receive sufficient income for their service.
The bill modified the Code to set the maximum allowable compensation formulas for cities based on population. In cities, like Chino, with a population between 75,000 and 150,000, the compensation is set at $1,900 per month. Previously the amount was $600 per month. The California Department of Finance State Demographic Report for January 2024 set the City of Chino’s population at 92,585, placing the City within this range.
SB 329 also amended the guidelines to authorize increases to maximum council salaries based on the greater of these two formulas:
a) 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or
b) an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year.
The bill requires the City Council to consider changes to Council Member compensation in open session during at least two (2) regular meetings of the City Council. Any salary increase may take effect only when at least one member of the council commences a new term. (Gov’t C. §36516.5. See 54 Ops Cal Atty Gen 112, 114 (1971).) In other words, a salary increase takes effect following the next municipal election and the term of newly appointed Council Members begins. Any additional compensation for an elected mayor under Government Code section 36516.1; however, may take effect during the mayor's current term. (89 Ops Cal Atty Gen 159 (2006).)
ISSUES/ANALYSIS
In Chino, City Council compensation has not changed in nearly 16 years. The last increase occurred on November 4, 2008 establishing the current monthly rate of $1,534 for the Mayor and $1,281 for Council Members.
Staff has reviewed the compensation of the Mayor and Council Members in the City of Chino, as well as the options presented in SB 329 for salary increases. Staff recommends the Council adopt the option to increase Mayor and City Council salaries by 5% calculated from the time of the last salary adjustment (in 2008). If approved, this would increase monthly compensation for the Mayor to $3,348.53 and $2,796.26 for each of the four Council Members.
This adjustment provides a more equitable compensation today for future Councils and aligns more closely with the intent of the SB 329 to address inflation and promote economic diversity. By offering fairer compensation, this option makes public service more accessible to individuals from a range of economic backgrounds. This option represents a strategic investment in attracting and retaining qualified leadership and provides a more sustainable solution, ensuring that Council compensation keeps pace with inflation and avoids the stagnation seen in the past.
Adoption of this ordinance will not cause additional changes to Council salaries, as automatic increases are not allowed. Any subsequent adjustments must be brought to an open meeting of the Chino City Council.
Attachment: Draft Ordinance No. 2024-011