Governor Gavin Newsom recently signed Senate Bill 329 (“SB 329”) into law, which amends Section 36516 of the Government Code, allowing for the first city council member pay cap increases in nearly four decades.
Background
SB 329 addresses the issue of stagnant compensation for city council members in general law cities. Existing law authorizes a city council to enact an ordinance to provide each member of the city council with a salary based on the population of the city. The existing compensation schedule, which has not been adjusted since 1984, has not kept pace with inflation. The bill aims to provide cities with the option to adjust council member compensation to account for inflation and support diversity in city councils because increased compensation can help individuals from across different income levels receive sufficient income for their service.
Key Provisions
Increased Salary Maximums
Under existing law, city councils can enact ordinances to provide salaries to council members based on the population of the city. SB 329 increases the maximum amounts of salary that can be approved by city ordinance, based on the population of the city. The new salary limits are as follows:
- Up to $950 per month for cities up to and including 35,000 in population.
- Up to $1,275 per month for cities over 35,000 up to and including 50,000 in population.
- Up to $1,600 per month for cities over 50,000 up to and including 75,000 in population.
- Up to $1,900 per month for cities over 75,000 up to and including 150,000 in population.
- Up to $2,550 per month for cities over 150,000 up to and including 250,000 in population.
- Up to $3,200 per month for cities over 250,000 in population
Additional Compensation Increases
SB 329 allows council member salaries to be increased beyond the specified maximums. The increases shall not exceed the greater of the following two conditions:
- The increase cannot exceed 5% for each calendar year from the operative date of the last salary adjustment.
- The increase cannot exceed the amount of inflation since January 1, 2024, based on the California Consumer Price Index. The inflation-based increase is capped at 10% for each calendar year.
Adoption of Ordinance
The bill requires the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least two regular meetings. The proposed ordinance, including findings justifying the need for increased compensation, must be presented at the first meeting. The adoption of the ordinance can take place at the second meeting, which must be held at least seven days after the first meeting. This is important because there is normally a five-day waiting period between the introduction and adoption of an ordinance.
Questions
If you have any questions concerning the content of this Legal Alert, please contact the following from our office or the attorney with whom you normally consult.
Mona Ebrahimi
mebrahimi@kmtg.com | 916.321.4597
Relevant Content
If you found value in this article, you might be interested in these links: