For City Council Meeting [January 23, 2024]
TO: Mayor, Mayor Pro Tem and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Eric S. Vail, City Attorney
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Request that the City Council Introduce for Second Reading Ordinance No. 1690, amending Sections 2.12.030, 2.12.040, 2.12.050 and 2.12.060 of Chapter 2.12 the Rialto Municipal Code to Adjust the Salary of the Mayor, City Councilmembers, City Clerk and City Treasurer of the City of Rialto as authorized by California Law.
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BACKGROUND
The City of Rialto is a general law city that may, pursuant to Government Code section 35616, adopt an ordinance providing a salary for the members of the City Council. Government Code section 36516.5 provides that any change in the salary of a member of the City Council only become effective whenever one or more Councilmembers begin a new term of office. This typically happens by December 15th of each even numbered year.
The authorized salary amount was initially determined many years ago by a statutory formula based on city population in accordance with state statutes. Thereafter adjustments were authorized pursuant to Government Code section 36516(a)(4) in increments of five percent (5%) for each calendar year from when the last salary adjustment was adopted by ordinance. The California Attorney General’s Office has opined that this calculation is on a simple, non-compounded, basis (California Attorney General Opinion No. 06-504).
When a City provides any type of compensation or payment of expenses to Councilmembers, then all councilmembers are required to have two hours of ethics training pursuant to California Government Code §§ 53234 - 53235. The City is compliant with this requirement.
On June 29, 2023 Governor Newsom signed into law Senate Bill 329 (“SB 329”) which increases the maximum amount of salary that council members may receive. According to the author Senator Dodd’s statement in the April 24, 2023 Assembly Floor Analysis, “the Legislature has not raised the base pay amounts for City Councilmembers since 1984,” and the increases authorized by SB 329 are designed to address recent inflationary increases and economic realities, “enable city councilmembers to balance their careers and personal obligations with the calling to serve their community,” and “also make it easier for members of marginalized communities to serve.”
Currently, the City Councilmembers, other than the Mayor, receive a salary of $1,920.96 per month. This amount was established by the adoption of Ordinance 1661 in September of 2021 and codified in Rialto Municipal Code (RMC) section 2.12.040 and was effective December 15, 2022.
In accordance with Government Code section 36516.1, the Council may, and has, established a salary for its directly elected Mayor that is in addition to what he or she would receive as a Councilmember. The City Council has provided for this in RMC section 2.12.030 by setting the salary of the Mayor at 250% of the salary a member of the Council received. As last adjusted in 2022, the Mayor’s salary was $4,802.40 per month.
In accordance with Government Code section 36517, the Council may, and has, established the salary for its elected City Clerk and elected City Treasurer’s salary that is equal to seventy-five percent (75%) of the salary received by members of the Council, other than the Mayor. This is codified in RMC sections 2.12.050 and 2.12.060. As last adjusted in 2022, the City Clerk and Treasurer each receive a salary of $1,440.72 per month.
An ordinance changing elected official salaries only applies to Councilmembers, and other elected officials, whenever one or more members of the Council is newly elected or re-elected, seated and sworn into office. The next regular municipal election for Councilmembers is November of 2024. Given the time required for certification of the election results and the seating and swearing in of the elected officials, the effective date of the proposed salary adjustment will be December 15, 2024, the first full day following the anticipated seating and swearing in of newly-elected or re-elected incumbent Councilmembers.
ANALYSIS/DISCUSSION
Salary adjustments for the City’s elected officials were last completed and made effective as of December 12, 2022. Pursuant to Government Code Section 36516(a)(4), the members of the Council are eligible to receive a five percent (5%) adjustment for each year since the most recent adjustment. Therefore, the statutorily authorized adjustment is 10% based on the passage of two years from the last adjustment, provided that the adjustment would not take effect until December 15, 2024.
According to the 2021 census data, the median household income in the City of Rialto is $69,934, and in contrast the median household income in California is $84,097. A salary increase of five percent (5%) is necessary to help keep the City Council more diverse, by allowing people from lower income levels to serve the public as council persons and support their families.
APPLICATION
The full legally authorized adjustment to be applied to adjusted salaries, effective December 15, 2024 would be as follows:
• Members of the Council other than the Mayor: $2,113.06
• Mayor: $5,282.65
• City Clerk: $1,584.80
• Treasurer: $1,584.80
The text of the proposed ordinance amendment is attached to this staff report.
ENVIRONMENTAL IMPACT
The proposed actions do not constitute a “project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(b), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A of the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney prepared and approved this staff report and ordinance.
FINANCIAL IMPACT
Operating Budget Impact
Adopting the Ordinance as proposed will have no impact on the Fiscal Year 2023-2024 operating budget. If the salaries of City Councilmembers, Mayor, City Clerk, and City Treasurer are adjusted as proposed, the resulting annual salary increases will be incorporated in the applicable future year annual budgets.
Capital Improvement Budget Impact
This action will have no impact on the current capital improvement budget.
RECOMMENDATION
Staff recommends that the City Council Introduce for Second Reading an Ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RIALTO, CALIFORNIA AMENDING SECTION 2.12.030, SECTION 2.12.040, SECTION 2.12.050 AND 2.12.060 OF CHAPTER 2.12 OF THE RIALTO MUNICIPAL CODE TO ADJUST THE SALARIES OF THE MAYOR, CITY COUNCIL MEMBERS, CITY CLERK AND CITY TREASURER IN ACCORDANCE WITH CALIFORNIA LAW.”