AGENDA TITLE: title
Public Hearing to Consider Waiving the First Reading and Introducing an Urgency Ordinance to Repeal and Replace Lodi Municipal Code 2.08 City Councilmember Salaries In Its Entirety Pursuant to SB 329 and to Allow Salary Increases to Begin With the December 2024 Council Term (CM)
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MEETING DATE:
November 6, 2024
PREPARED BY:
Scott R. Carney, City Manager and Katie O. Lucchesi, City Attorney
recommendation
RECOMMENDED ACTION:
Public Hearing to consider waiving the first reading and introducing an urgency ordinance to repeal and replace Lodi Municipal Code 2.08 City Councilmember salaries in its entirety pursuant to SB 329 and to allow salary increases to begin at the December 2024 Council term (CM).
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BACKGROUND INFORMATION:
In 2008, the City Council of the City of Lodi (“City”) set the salaries for the Mayor and City Councilmembers (collectively “Councilmembers”) at $860 per month (Lodi Municipal Code Section 2.08.020) based on the law in effect at the time. That salary amount was tied to the City’s population being over 50,000 (Former Gov. Code Section 36516(a)(3), as existing before January 1, 2024). Councilmember’s $860 monthly salary amount has not been increased since 2008. In light of the revisions to Government Code 36516 made by California Senate Bill 329 (Chp 27, Stats 2023) (“SB 329”), further discussed below, staff recommends that Council consider a draft urgency ordinance increasing Council Member salaries to take effect with the next Council term on December 18, 2024.
DISCUSSION/ANALYSIS:
SB 329 was signed into law in June of 2023 and its changes took effect January 1, 2024.
The legislation amended Government Code Section 36516, increasing the maximum monthly salary payable to councilmembers of general law cities, such as the City of Lodi. In enacting SB 329, the Legislature found that “[t]he compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation,” and further found that “[a]llowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families.” (SB 329, Section 1.)
Senator Bill Dodd from Napa, author of SB 329, provided the following justifications in support of the need to raise Council salaries:
i. “low levels of pay make it much harder for [councilmembers] to balance their careers and personal obligations with the calling to serve their community. It's time those amounts caught up to the present economic reality, especially with the rapid increase in inflation we've seen recently.”
ii. SB 329 was intended to “remove barriers to achieving more equitable representation in local government by making it easier for public servants to balance careers and personal obligations.”
iii. “[r]aising the pay will also make it easier for members of marginalized communities to serve. City Councils should be reflective of the communities they represent and I believe raising their compensation is an important step to achieving that equitable outcome.”
Similarly, Lodi Councilmember salaries have not been increased since 2008, and such salaries have not kept pace with the rising cost of living and inflation, which have increased significantly in recent years. Adjusting salaries in line with these economic realities ensures Councilmembers are fairly compensated without diminishing their standard of living and allowing for their full participation in civic duties.
Also, in following the intent of SB 329 to expand Council representation of all residents, City Council has taken a series of actions to better represent Lodi’s diverse community:
i. The City completed its last round of redistricting in 2021, which focused on public outreach and engaging all City communities in the redistricting process.
ii. In May 2023, Council adopted its Strategic Vision and eight initiatives to serve as the City Council’s vision for the future of the City. Council initiatives, such as: economic development, housing, and public well-being, all state the desire to engage diverse cultures and gather perspectives from residents to identify new ideas and strategies to improve Lodi.
iii. The Council also approved and adopted its Housing Element in March 2024, which prioritized community engagement to ensure that the City meets the housing needs for Lodi residents and provides fair housing options for all. We are proud to recognize that Lodi was only the second City in the State to get its Housing Element certified by the California Department of Housing and Community Development.
These examples show that Council is attempting to fully represent the diverse interests of all Lodi residents, but those efforts have not yet shown in the Council candidate nominations. The City’s certified candidate lists from the current 2024 election back to 2016, show that the majority of City Council candidates have listed their Ballot Designations as business owner, incumbent or Councilmember, or such other positions with more flexible work schedules. This narrow swath of occupations does not fully encompass the diverse careers, lifestyles, or perspectives represented in the City. By providing fair compensation going forward, Lodi may also foster a more inclusive Council, where financial barriers do not hinder qualified candidates from all income levels and backgrounds.
Under the SB 329 revisions to Government Code 36516, maximum Councilmember salary amounts remain tied to City population, as determined by the last federal census or an estimate validated by the California Department of Finance. The chart below identifies the maximum salary amount by City population established by the new law (Gov. Code Section 36516(a)(2)-(3)).
|
City Population |
Maximum Council Member Monthly Salary |
|
Up to 35,000 |
$950 |
|
35,001 to 50,000 |
$1,275 |
|
50,001 to 75,000 |
$1,600 |
|
75,001 to 150,000 |
$1,900 |
|
150,001 to 250,000 |
$2,550 |
|
Over 250,000 |
$3,200 |
The 2020 census shows the City’s population as 66,348 (see Lodi, California - Census Bureau Profiles Results <https://data.census.gov/profile?q=lodi,%20california>). The California Department of Finance estimated the City of Lodi’s population as of January 1, 2024, to be 66,492 (see Estimates-E1 | Department of Finance (ca.gov) <https://dof.ca.gov/forecasting/demographics/estimates-e1/>). Under either population measure, the population of the City of Lodi is between 50,001 and 75,000; therefore, the City Council may increase the monthly Council Member salary from $860 per month up to $1,600 per month.
Following the establishment of the population-based salary by a City Council, as set forth above, Government Code authorizes the City Council to adopt future salary increases beyond those amounts by a subsequent ordinance. However, the future increases may not to exceed the greater of either:
(1) an amount not to exceed five percent for each calendar year from the operative date of the last adjustment of the salary; or
(2) the inflation amount since January 1, 2024, not to exceed 10 percent for each calendar year (Gov. Code Section 36516(a)(4)).
Any increase in Councilmember salaries requires an affirmative act of the City Council and automatic future increases in Councilmember salary, such as automatic cost of living increases, are prohibited. (Gov. Code Section36516(a)(5).) Any future change in salary adopted by ordinance would not take effect until the start of a new term of any one Councilmember, including Councilmembers who may be re-elected (Gov. Code Section 36516.5.) The start of a new term for the Lodi City Council will occur on December 18, 2024, following certification of the results of the general election held on November 5, 2024. Therefore, unless the urgency ordinance is adopted, any salary increase would not take effect until after the next election cycle in December of 2026.
Procedurally, Government Code as revised by SB 329 requires that any increase to the Council Member salary be enacted by ordinance considered during at least two regular meetings of the City Council at least seven days apart. The ordinance increasing salaries must also be supported by findings demonstrating the need for the increased compensation (Gov. Code Section 36516(g)).
A proposed ordinance amending Lodi Municipal Code Section 2.08.020 to reflect a new City Council Member salary of $1,600 per month is attached for the City Council’s consideration.
Urgency Findings
Government Code Section 36937(b) provides that Council can adopt an ordinance that takes effect immediately “[f]or the immediate preservation of the public peace, health or safety, containing a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the city council.”
As described above, if the proposed changes are adopted as an Ordinance rather than an Urgency Ordinance implementation of the salary increases would be delayed until at least one Council Member begins a new term in December 2026. Delaying implementation would have an immediate threat to public peace, health and safety of the City and its community due to the identified financial harms to current Councilmembers, the deterrence to diverse future candidates going into the City’s next election cycle in 2026, and ultimately the City as a whole.
This proposed Urgency Ordinance complies with the two regular meeting requirements provided in Section 36516, but would waive the 30-day period before the Ordinance’s effective date, so that salary increases can take effect with the new Council term beginning December 18, 2024. The City Council has the power to enact an urgency ordinance, not in conflict with general laws, as necessary to protect public peace, health, and safety, via exercise of the powers provided to cities in Article XI, Section 7, of the California Constitution, and in compliance with Government Code section 36937(b). Staff recommends adoption of this Urgency Ordinance pursuant to Government Code Section 36937(b). The urgency ordinance would be effective immediately upon a 4/5 vote, and then the adopted salary increases would apply when the new Council term begins.
ALTERNATIVE ACTIONS:
The City Council could (1) determine that an urgency does not exist, and instead adopt a traditional ordinance amending Chapter 2.08 which would go into effect on the 31st day following adoption (salary increases would not occur until the next term begins in December 2026, (2) choose to adopt a monthly salary at an amount less than $1,600 per month, (3) choose to take no action and have no further discussion on Council Member salaries, or (4) submit the question of the amount of Council Member salaries to the voters at a municipal election. (Gov. Code section 36516(b)).
STRATEGIC VISION:
All.
FISCAL IMPACT:
Council also participates in the various benefits set forth in Resolution 2021-12 attached as Exhibit A which include accidental death and dismemberment insurance, chiropractic coverage, a deferred compensation, dental insurance, life insurance, medical insurance or a buyout option, PERS retirement, technology, travel insurance, vision coverage and worker’s compensation insurance. The current salary for a Council Member is $860 per month or $10,360 per year. Depending on the benefits selected and received, a Council Member’s maximum current total annual compensation can be up to $37,211. If the City Council increases compensation to $1,600 per month or $19,200 per year, the total compensation amount would be up to $47,299. The salary increase is estimated to cost an additional $29,290 for the remainder of Fiscal Year 2024-25.
FUNDING AVAILABLE:
Funding is available in the General Fund contingency budget. The contingency budget was set at $55,000 for Fiscal Year 2024-25.
Attachments: Resolution 2021-12
Proposed Lodi Municipal Code Section 2.08
Redlined Lodi Municipal Code Section 2.08
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Katie O. Lucchesi
City Attorney
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Scott R. Carney
City Manager