REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Councilmember and Mayor Stipend Amounts Pursuant to City Charter Section 605
Report
BACKGROUND
This report recommends amending the City’s Salary Resolution and Schedule of Pay to increase the Councilmember and Mayor stipend amounts for 2026 in accordance with City Charter Section 605, which provides for annual cost-of-living adjustments based on the Consumer Price Index for All Urban Consumers (CPI-U).
EXISTING POLICY
City Charter Section 605. Compensation: Annually on January 1, the compensation of the Council and Mayor shall increase by a percentage equal to the percentage increase in the preceding October’s 12-month rolling average of the Consumer Price Index - Urban (CPI-U) for San Francisco- Oakland-Hayward. In no event shall the CPI-U compensation adjustment exceed 5% per year, or result in a compensation decrease.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment, and section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
Staff recommends adopting a resolution amending the City’s Salary Resolution and Schedule of Pay pursuant to City Charter Section 605, which provides Council with annual cost-of-living increases based on CPI-U, not to exceed 5% and not to result in a compensation decrease.
Under normal circumstances, the 12-month rolling average is calculated using the December through October bimonthly CPI-U data. However, due to the federal government shutdown, the Bureau of Labor Statistics cancelled the October 2025 CPI-U because the data could not be retroactively collected. With legal guidance from the Office of the City Attorney, staff determined that, in the absence of the October 2025 CPI-U, the most reasonable and Charter-consistent approach is to calculate the rolling average using the available bimonthly CPI-U data from December 2024 through August 2025. Based on this methodology, the applicable 12-month rolling average CPI-U increase is 2.08%.
Consistent with the City Charter, this results in a 2.08% annual cost-of-living adjustment for calendar year 2026. Accordingly, the monthly stipend for Councilmembers will increase from $3,113.88 to $3,178.64, and the Mayor's monthly stipend will increase from $4,151.84 to $4,238.20. The effective date of the new rates will be the pay period inclusive of January 1, 2026, which started on December 21, 2025. Given the delay in CPI-U data this year due to the federal government shutdown, this change will be implemented retroactively.
FISCAL IMPACT
Council compensation is budgeted in the Office of the City Manager and funded by the General Fund, with recovery across all funds through indirect cost allocation. The increased costs will be absorbed in the adopted current year budget and incorporated in the FY 2026/27 Recommended Budget.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Adopt a Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Councilmember and Mayor Stipend Amounts Pursuant to City Charter Section 605.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Vienne Choi, Principal Human Resources Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager and Interim Human Resources Director
Reviewed by: Matt Paulin, Director of Finance
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution Amending Salary Resolution and Schedule of Pay
2. U.S. Bureau of Labor Statistic, Consumer Price Index for the San Francisco-Oakland-Hayward Area