G.10 GT_ City Council Salary_AllowancesOrdinance Establishing New City Council
Salary, Vehicle and Technology
Allowances
April 26, 2022
City Council
Goal # 5
Engage the Community by
Participation” by allowing the City
to ensure that City Council salaries
and allowances are competitive
such that it will encourage more
citizens to participate in City
governance.
Proposed
Ordinance
for
Introduction
•Codify an Adjustment to the City
Council Salary
•Codify an Adjustment to the City
Council Vehicle Allowance
•Establish and Codify a New
Technology Allowance
City
Council
Salary
Government Code Section
36516(a)(4) permits the City
Council to increase the
compensation above the amount
set by Government Code Section
36516(a)(1), provided that “… the
amount of the increase shall not
exceed an amount equal to 5
percent for each calendar year
from the operative date of the last
adjustment of the salary in effect
when the ordinance or
amendment is enacted …”
City
Council
Salary
•Last City Council salary adjustment took
place in 2010
•The adjustment was from $150 to $300 per
month
•The calculation for the proposed
adjustment is as follows:
2022 –2010 = 12 years
5% x 12 years = 60%
60% x $300 = $180 per council member
$180 + $300 = $480 per council member
•New adjusted amount $480 per month
Allowances
•Government Code section
36514.5 states: “City council
members may be reimbursed for
actual and necessary expenses
incurred in the performance of
official duties.”
•State law contemplates
reimbursement based on receipts
of actual expenses rather than
allowances. Reimbursement
approach is safest and most
conservative.
Allowances
•In 2010, the California Attorney
General was presented with the
following question: May a city
provide a vehicle allowance to
its city council members in lieu of
reimbursing actual vehicle
expenses after such expenses are
incurred?
•The Attorney General opined: “A
city may provide a vehicle
allowance to its city council
members in lieu of reimbursing
actual vehicle expenses after
such expenses are incurred.”
Allowances
•“[T]he purpose of a vehicle
allowance provided to city
council members or other public
officers is to realize administrative
and other cost savings and
efficiencies for the public.”
•“[A] vehicle allowance is
permissible only if travel expenses
are authorized by statute,
ordinance, or charter.”
•“[T]he amount of the allowance
must be reasonably related to
what is required for the
performance of an officer’s
public duties.”
Vehicle Allowance
•Travel allowance will serve as
reimbursement for expenses such
as gasoline, mileage, wear and
tear, insurance, and
depreciation, incurred by
Council Members in the use of
their personal automobiles in the
course of official duties.
•Current amount is $200 per
month
•Proposed adjusted amount is
$450 per month
•The ordinance will formally codify
this travel allowance in the
Municipal Code as suggested in
the Attorney General opinion.
Technology
Allowance
•Ordinance also establishes a
technology allowance which
recognizes the effects of COVID-
19 and new necessity to utilize
technology to serve in the role of
a council member.
•Technology allowance is an
extension of the Attorney
General opinion discussing travel
allowances by relying on the
same concepts.
•Risk question: allowance versus
reimbursement-based model?
Technology
Allowance
•Proposed amount is $205.00 per
month
•Amount will serve as
reimbursement for technology-
related expenses such as:
•Cellphone service
•Internet service
•Other similar costs incurred by
Council Members in the use
of their personal technology-
related equipment and
service in the course of
official duties.
Technology
Allowance
•Based upon research by staff:
•The monthly internet service in the
Grand Terrace is about $114.99
(Spectrum Internet).
•Monthly cell phone service with
Verizon is about $90.00 (not including
device costs).
•Monthly cellphone service cost with
AT&T (unlimited) is about $105.00.
•The $205.00 amount is based
upon the Verizon monthly
cellphone service cost.
General
Comments
•The salary adjustment does not
take effect until a new City
Council member is seated which
will likely be after the next
election.
•The two allowances will take
effect on July 1, 2022 (start of the
new fiscal year)
•The ordinance provides that the
City Manager shall place a
discussion item on a City Council
agenda during the City’s annual
budget preparation cycle for the
City Council to review and
consider adjustments to City
Council salary and allowances.
Questions