Pacific Grove City Council considers compensation increase for mayor and council members

The Pacific Grove City Council convened on May 7, 2025, to discuss several key agenda items, with a significant focus on proposed changes to council compensation and medical benefits for elected officials.

The meeting commenced with the approval of the consent agenda, leading into item 11a, which addressed potential amendments to the government code regarding city council compensation. City Attorney Bridal Flick presented an overview of Senate Bill 329, enacted in 2023, which allows for an increase in compensation for city council members in cities with populations of 35,000 or less. The proposed increase would raise monthly compensation from $300 to $950, with alternative calculations based on inflation or a fixed percentage increase.

Flick highlighted that the last adjustment to council compensation in Pacific Grove occurred in 1998, resulting in a significant gap in salary adjustments that has not kept pace with inflation. The council members currently receive $420 per month, while the mayor's compensation stands at $700 per month. The proposed adjustments could bring the council's compensation to approximately $966 per month and the mayor's to around $1,610 per month.

The discussion also included the provision of medical benefits for the mayor and council members. The government code stipulates that any medical benefits provided cannot exceed those available to non-safety employees. Options for medical coverage include a cash-in-lieu option of $250 per month or enrollment in the city’s medical insurance plan, with varying costs depending on the number of dependents.

The fiscal implications of these proposed changes were also examined. If approved, the total annual cost for council compensation would increase from $30,240 to approximately $69,552, while the mayor's compensation would rise from $8,400 to $19,320. This represents a combined annual increase of over $50,000, factoring in additional costs related to Medicare and workers' compensation.

The council's deliberations on these matters reflect a broader trend among nearby cities, such as Marina and Seaside, which have recently adjusted their council compensation to better align with current economic conditions. The meeting concluded with a commitment to further evaluate the proposed ordinance and its implications for the city budget and governance.