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HomeMy WebLinkAbout1/13/2026 Item 7c, Hermann and Purrington - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: January 13, 2026 TO: Mayor and Council FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk VIA: Whitney McDonald, City Manager SUBJECT: ITEM 7c – 2026 Council Compensation Committee Recommendation Staff received the following questions from Council, with staff’s response shown in italics: 1. The staff report seems fairly clear about the methodology proposed by the committee for increasing council compensation based on the revised median city income. However, can you please provide more information about how the committee arrived at the new proposed amounts for “reimbursable pro fessional expenses”? The Committee’s recommendation for the revised reimbursable professional expense amounts was based on both historical spending data and inflationary trends. Staff presented the Committee with a detailed list of professional development items and associated costs that Council Members utilized during fiscal years 2021 –22 through 2024–25. This review demonstrated that the cost of commonly reimbursed items increased by approximately $337 over the three-year period. In addition, staff provided data showing that the Consumer Price Index (CPI) increased by approximately 35 %, or $945, between 2016 (when that amount was last increased) and 2025. After considering both the actual cost increases reflected in recent spending patterns and the broader impact of inflation, the committee determined that a proposed increase of $600 annually per Council Member and $800 annually for the Mayor repr esents a reasonable midpoint between observed cost growth and CPI -based inflation. ITEM # 7c – 2026 Council Compensation Committee Recommendation Page 2 2. I’m curious about the potential unintended consequences of the pilot project to pay advisory body members $25 per meeting, should they choose to voluntarily accept the payment. Does this pose significant workload for staff, or extra requirements (employee required training, etc.) for the individuals? If it’s a pilot project, what would the period of the proposed p ilot be and what would be the criteria for deciding to end the pilot? Was this discussed? The Committee discussed and considered these questions during its meetings. Members recognized the importance of understanding any potential unintended consequences of implementing a pilot program that would provide a voluntary $25 per-meeting stipend to advisory body members, including possible impacts on staff workload, administrative processes, and any training or compliance requirements for participating individuals. Because these issues require additional analysis and input from staff, the Committee decided to recommend staff further explore these questions and report back to the Council with findings and recommendations. This includes evaluating administrative impacts, clarifying whether additional requirements would be triggered, and developing options for the structure of a pilot program, such as the pilot period, evaluation criteria, and conditions under which the pilot program could be modified or discontinued. 3. On page 521 of the packet, the following table appears: Can you please explain the calculations for the highlighted amounts? ITEM # 7c – 2026 Council Compensation Committee Recommendation Page 3 Reimbursable Professional Expenses Because the proposed increases do not take effect until January 2027, the FY 2026 – 27 amounts reflect a half-year impact. For that fiscal year, the increase is $300 per Council Member, resulting in a total of $1,200 for four Council Members. The FY 2027–28 (ongoing) column reflects the full-year impact of the $600 increase, totaling $2,400 for four Council Members. Statewide Board or Policy Travel Reimbursement For both fiscal years shown, staff assumed that three Council Members (including the Mayor) would hold appointments to Statewide Boards or Policy Committees. In FY 2026–27, the travel reimbursement amount is calculated at $500 per appointed Council Member, for a total of $1,500 ($500 × 3 = $1,500), which is the prorated amount for half a year. Beginning in FY 2027–28 and continuing in each fiscal year thereafter, any Council Member appointed to a Statewide Board or Policy Committee w ould receive $1,000 annually for travel expenses related to attending statewide meetings. 4. What is the rationale for recommending use of the city median income as the basis for the City Council salary? The Committee reviewed and discussed multiple options for establishing an appropriate basis for City Council compensation. After evaluating the available information, the Committee ultimately recommended using the same approach adopted by the 2020 Council Compensation Committee, basing Council salary on the current Median Household Income as reported by the U.S. Census. The Committee felt this methodology most closely aligns Council compensation with the economic realities of the community and reflects the income levels of the City’s constituents.