CC - Item 7E - Introduction of Ordinance No. 1020 - Setting City Council Salaries Pursuant to Senate Bill 329ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: SEPTEMBER 26, 2023
SUBJECT: INTRODUCTION OF ORDINANCE NO. 1020 — SETTING CITY
COUNCIL SALARIES PURSUANT TO SENATE BILL 329
SUMMARY
Since 2006, when Ordinance No. 841 was passed, the salaries of the City Council have remained
unchanged at $1,118.63 per month. On June 29, 2023, Governor Newsom signed into law Senate
Bill 329 ("SB 329"), which raises the maximum salary that council members may receive. This
bill aimed to increase the compensation schedule for council members in cities governed by
general law, which had not been updated since 1984. SB 329 allows cities to increase the
compensation to adjust for inflation in order to help keep city councils more diverse by allowing
people from across different income levels to serve the public and support their families.
DISCUSSION
Currently, Government Code section 36516 authorizes a city council to adopt an ordinance to
provide each member of the city council with a salary, with a maximum limit based on the
population of the city according to a specific schedule. Any salary increases are also limited and
cannot exceed 5% per calendar year from the effective date of the most recent salary adjustment
in effect when the increase is implemented.
SB 329 modifies section 36516 of the Government Code to increase the maximum salary listed in
the schedule. The monthly salary for council members in cities with a population over 50,000 up
to and including 75,000 in population, has increased to up to $1,600 per month. According to the
California Department of Finance, as of January 1, 2023, the total population of Rosemead is
50,022. SB 329 also permits the salary of council members to be increased beyond the specified
maximum by an amount not exceeding the greater of 5% for each calendar year from the effective
date of the last salary adjustment or an amount equal to inflation since January 1, 2024, as
measured by the California Consumer Price Index (not to exceed 10% per calendar year).
The last time council compensation was adjusted was in 2006 and the salaries of the City Council
have remained unchanged at $1,118.63 per month since that time. Since 2006, the annual
AGENDA ITEM 7.E
City Council Meeting — Ordinance No. 1020 - Setting City Council Salaries
September 26, 2023
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California CPI for All Urban Consumers increased 51.65%. Since council compensation has not
changed since 2006, it has not kept up with inflation. To keep up with California inflation, council
compensation would have to increase by 51.65%, which would equate to an increase of $577.77
bringing the total monthly salary to $1,696.40. The City Council could elect to increase
compensation up to the maximum salary listed on the schedule modified by SB 329. According
to the modified Government Code section 36516 salary schedule, this would bring council salary
up to $1,600 per month for a city with a population of over 50,000 up to and including 75,000 in
population. This would bring the total monthly council compensation amount up from $1,118.63
to $1,600. The fully burdened annual impact to the General Fund would amount to $31,500.
SB 329 requires that an ordinance to increase council member compensation be considered in an
open session with at least two regular meetings. The ordinance must include findings
demonstrating the need for increased compensation and there must be at least seven days between
the introduction and adoption of the ordinance.
No ordinance may be enacted or amended to provide automatic future salary increases, and the
electorate may vote on the issue of whether city council members should receive a salary, as well
as the amount of the salary. For purposes of calculating salary under section 36516, retirement,
health and welfare, federal social security, and reimbursement for actual and necessary expenses
are not included.
SB 329 will become effective on January 1st, 2024, however, according to Government Code
section 36516.5, any council salary increase may only take effect when at least one council
member begins a new term. It should be noted that if the City were to become a charter law city
the charter could have the compensation increase take place at a different time and would not be
required to wait for an election of one term to occur first.
STAFF RECOMMENDATION
That the City Council waive further reading and introduce by title only, Ordinance No. 1020, an
Ordinance of the City Council of the City of Rosemead Setting City Council Salaries.
LEGAL REVIEW
The proposed staff report has been reviewed by the City Attorney.
FISCAL IMPACT
The fiscal impact relating to the increased cost in City Council compensation amounts to $31,500
annually. Any appropriations needed for this action will be presented in the Mid -Year Budget
Report.
City Council Meeting — Ordinance No. 1020 - Setting City Council Salaries
September 26, 2023
Page 3 of 3
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Bryan Chua
Finance Director
Rachp,LRiclunaL,
Rachel Richman
City Attorney
Attachment A
Ordinance No. 1020
ORDINANCE NO. 1020
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ROSEMEAD, CALIFORNIA, AMENDING MUNICIPAL
CODE SECTION 2.04.010 RELATED TO COUNCIL
SALARIES AS AUTHORIZED BY SENATE BILL 329
WHEREAS, Senate Bill 329 was adopted to "reset' city council salaries to reflect the
important work done by city council members, to take into account the impacts of inflation and
economic realities on those who serve as city council members, and to encourage more persons to
consider service as council members by making the compensation more reflective of the time and
work being performed; and
WHEREAS, the City Council has not had an increase in compensation since 2006 therefore
its salaries were no longer reflective of the time and effort put forth by an elected official in the
City; and
WHEREAS, reasonable council member compensation acknowledges the civic
commitment of service and provides an additional incentive for as diverse candidates pool as
possible.
WHEREAS, the City Council reviewed and discussed the value and important impacts of
Senate Bill 329 on the future governance of the City and found that it agreed with the intent of the
state legislature;
WHEREAS, under Senate Bill 329 the salary for the City Council of the City of Rosemead
can be set at $1,600 per month.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment. The Council hereby by amends Rosemead Municipal Code
Section 2.04.010 as follows:
"Section 2.04.010- Councilmembers—Compensation
A. Each member of the City Council shall receive a salary, as provided in section B. Such
salaries shall be payable at the same time and in the same manner as salaries are paid to other
officers and employees of the City of Rosemead.
B. Pursuant to California Government Code Section 36516, each member of the city
council, shall receive a salary in the amount of sixteen hundred dollars ($1,600.00) per month.
That the salary shall become payable only on or after the date upon which one or more members
of the City Council become eligible therefor by virtue of beginning a new term of office as
provided for in California Government Code Section 36516.5."
SECTION 2. Publication. The City Clerk is directed to certify this Ordinance and cause
it to be published in the manner required by law.
PASSED, APPROVED AND ORDAINED this day of , 2023.
APPROVED AS TO FORM:
Rachel Richman, City Attorney
Steven Ly, Mayor
ATTEST:
Ericka Hernandez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of
California, hereby attest to the above signature and certify that Ordinance No. 1020 was introduced
for first reading at the regular meeting of September , 2023. Said Ordinance was approved
and adopted by the City Council of the City of Rosemead at a regular meeting held on the day
of 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk