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BACKGROUND Generally, city council salaries are determined by population. Government Code, § 36516. When the City's population reached 50,000 in 1989, Council adopted an ordinance raising its salary to $500/month. § 2.04.020, Pleasanton Municipal Code; Government Code, § 36516(a)(3). By ordinance, the Mayor's salary is $100 more per month than a councilmember's salary. Section 2.06.040, Pleasanton Municipal Code. The Mayor's salary, consequently, is $600/month. These salaries became operative in December 1990 when that new City Council term began. Government Code, § 36516.5. Because City Council salaries, based solely by population, will not be able to be increased until the City's population reaches 75,000, the Government Code also provides that compensation may be established by vote of the electors or, perhaps more commonly, by adoption of an ordinance. In this latter circumstance, the salaries may be increased by 5% for each calendar year from the operative date of the last adjustment. DISCUSSION In that the Council's last salary adjustment was operative in 1990, and because the operative date of this increase would not be until the term of the new Council begins, in December 2008, the Council's compensation could increase $450 (5% x 18 years x $500). If the ordinance is adopted, Council salaries would be set at $950 and the Mayor's salary at $1050, starting in December 2008 after the term of the next Council begins. Submitted by: Michael Roush City Attorney ~~~~~~ Dave Culver Director of Finance Approve by: Nelson Fialho City Manager Page 2 of 2