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<br />$600/rnonth. These salaries became operative in December, 1990 when that new City Council <br />term began. Government Code, ~ 36516.5. <br /> <br />Because City Council salaries, based solely by population, will not be able to be increased until <br />the City's population reaches 75,000, the Government Code also provides that compensation may <br />be established by vote of the electors or, perhaps more commonly, by adoption of an ordinance. <br />In this latter circumstance, the salaries may be increased by 5% for each calendar year from the <br />operative date of the last adjustment. <br /> <br />In that the Council's last salary adjustment was operative in 1990, Council could increase its <br />compensation by as much as $400 (5% x 16 years x $500). Staff is recommending an incl'ease <br />of only $200, to $700/month for Council and $800 for the Mayor. The operative date of this <br />increase would not be until the term of the new Council begins, in December 2006. In addition, <br />Councilmembers and the Mayor routinely use theil' personal cars for City business. In <br />recognition of that, staff is also recornmending that the Council establish a $200/month car <br />allowance for each Councilmember and the Mayor. <br /> <br />STAFF RECOMMENDATION <br /> <br />Staff recommends that the Council (a) introduce the attached ordinance increasing Council <br />salaries to $700/month and the Mayor's salary to $800/month, both operative as of the start of <br />the next City Council term of office in 2006, and (b) adopt the attached resolution establishing a <br />$200/rnonth car allowance for the Council. <br /> <br />FISCAL IMPACT <br /> <br />A budget adjustment of $15,380 will be required and will be included along with all other mid- <br />year adjustments with the 2nd quarter budget update. <br /> <br />Respectfully Submitted, <br /> <br />'1'VItCiAaA/td ~ .on;:,~~ <br /> <br />Michael H. Roush ~ Dave Culver <br />City Attorney Directol' ofPinance <br /> <br /> <br />Nelson Pialho <br />City Manager <br /> <br />Attachment <br /> <br />SR 06:248 <br />Page 2 <br />