TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Cristal McDonald, City Clerk
SUBJECT:
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First Reading of Ordinance No. 611-24 Amending City Council Compensation
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RECOMMENDATION
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Conduct the first reading of Ordinance No. 611-24 entitled: An Ordinance of the City Council of the City of Murrieta, California, Amending the Compensation of the City Council.
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PRIOR ACTION/VOTE
On December 7, 2010, the City Council adopted Ordinance No. 445-10, Establishing Limits on City Council Compensation as Memorialized in Murrieta Municipal Code Section 2.04.050 (Vote: 4-0-1).
On December 15, 2020, the City Council adopted Ordinance No. 562-20, Establishing Limits on City Council Compensation (Vote: 4-0).
On November 1, 2022, the City Council introduced Ordinance No. 585-22, Amending the Compensation of the City Council (Vote: 5-0).
On November 15, 2022, the City Council conducted the second reading. It adopted Ordinance No. 585-22, Amending the Compensation of the City Council, to establish an updated limit on City Council Compensation in accordance with both Murrieta Municipal Code 2.04.050 and Government Code Section 36516, increasing the City Council compensation to $1,246.94 per month, effective January 1, 2023(Vote: 4-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
On November 2, 2010, registered voters of the City of Murrieta voted to enact a compensation plan for the City Council. Commonly known as Measure D, the resulting Murrieta Municipal Code (MMC) Section 2.04.050 establishes a stipend for Council Members limited to fifteen percent (15%) of the median family income of the people of Murrieta. Furthermore, Government Code Section 36516 permits the compensation of Council Members to be increased at a rate not to exceed 5% for each calendar year from the operative date of the last adjustment, which in the case of Murrieta was 2022.
The Retail Coach, LLC, a research firm commissioned for this purpose, estimated the 2024 base figure for median family income in Murrieta as $122,990. Fifteen percent (15%) of the 2024 median family income is $18,448.54 or $1,537.38 per month, and the current Council compensation is $1,246.94 per month. Following the provisions of MMC Section 2.04.050, the Council is eligible for a compensation increase of $1,537.38 per month, an increase of $290.44, which does not exceed the maximum allowed under State law.
Per the provisions of Government Code Section 36516.5, a change in compensation does not apply to a Council Member during his or her term in office. However, compensation for all members of the City Council may be adjusted whenever one or more members become eligible for an increase by virtue of beginning a new term of office.
FISCAL IMPACT
Anticipating an effective date of January 1, 2025, the total fiscal impact associated with a City Council compensation increase for all five City Council Members for the remainder of the Fiscal Year 2024/25 is $9,229.73, including the costs for Medicare, workers’ compensation insurance, and PARS associated with this pay increase. The fiscal impact will be included as part of the FY 2024/25 mid-year budget update.
ATTACHMENTS
1. Ordinance No. 611-24