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THE CITY OF { %° tR' ' CITY COUNCIL AGENDA REPORT pLEASANTON. January 19, 2016 City Manager TITLE: INTRODUCTION OF AN ORDINANCE AMENDING SECTION 2.04.020 OF THE MUNICIPAL CODE PERTAINING TO COUNCILMEMBER SALARIES SUMMARY Generally, city council salaries are determined by population as authorized by Government Code §36516. In 1989, when the City's population reached 50,000 Council adopted an ordinance to raise its members' salaries; however, additional increases based on population are not applicable until the City's population reaches 75,000. The Government Code also provides that compensation may be established by vote of the electors or by adoption of an ordinance. In the latter circumstance, the salaries may be increased by 5% for each calendar year from the effective date of the last adjustment. Following this provision, the City adopted an ordinance adjusting Councilmember salaries to $950 per month in July 2007. That salary increase became effective when the term of the new Council began in December 2008. Pursuant to section 2.06.040 of the Municipal Code, the Mayor's salary is $100 more per month than a Councilmember's salary. The Mayor's salary, consequently, was set at $1,050 per month. At this time, it is recommended that a 10% adjustment be implemented for the City Councilmembers, bringing their monthly salaries to $1,045 and the Mayor's monthly salary to $1,145. In addition, any Councilmembers who are participating in the CaIPERS pension program will begin paying 8% of their member contributions. RECOMMENDATION That the City Council adopt an ordinance to increase each Councilmember's monthly salary to $1,045, which will become effective when the term of the new Council begins in December 2016. Pursuant to the Municipal Code, the Mayor's monthly salary will be set at $1,145 concurrently. FINANCIAL STATEMENT Taking into consideration the savings to the City with Councilmembers paying 8% of member contributions towards the retirement program ($6,402), the cost for the increase is approximately $919 for a full fiscal year.