Report Prepared by: Jennifer Parsley, Assistant City Clerk, City Clerk’s Office
Title
SUBJECT: Approval of the Citizens’ Stipend Setting Commission’s Written Recommendation to the City Council Regarding the Recommended City Council Monthly Stipend to be $1,000 and the Mayor’s Monthly Stipend to be $1,250
REPORT IN BRIEF
Considers the approval of the Citizens’ Stipend Setting Commission’s written recommendation to increase the monthly stipend for the City Council and the Mayor.
RECOMMENDATION
City Council - Adopt a motion approving Resolution 2026-25, a Resolution of the City Council of the City of Merced, California, adopting the Citizens’ Stipend Setting Commission’s recommendation to increase the monthly stipend it deems appropriate for the City Council and the Mayor pursuant to Section 402 of the City of Merced Charter.
Body
ALTERNATIVES
1. Accept the Citizens’ Stipend Setting Commission’s written recommendation; or,
2. Continue to a future meeting for further discussion or,
3. Deny the item.
AUTHORITY
City of Merced Charter, Section 402.
DICUSSION
At the March 2020 Primary Election, citizens voted in favor of establishing a Citizens’ Stipend Advisory Commission. The Citizen’s Stipend Advisory Commission consist of seven (7) members to be appointed by the City Council from the qualified electors of the City. Six (6) members will be appointed by district and one (1) member will be appointed at large.
The Commission shall hold two (2) public hearings between March 1st and June 30th of every even-numbered year and shall recommend, by majority vote and in writing, to the Council the amount of the monthly stipend which it deems appropriate for the members of the Council for the two (2) year period beginning January 1st of the next year. The amount recommended for each council member shall be the same.
The Citizens’ Stipend Setting Commission held their first meeting on April 2, 2026. During that meeting the Commission learned their roles and duties and then selected a Chair and Vice-Chair. On April 16, 2026, the Commission held its first Public Hearing, Staff and Commission discussed the Council’s current stipend, the history of Council stipend, other City’s Council stipend, time study of the Council, and economic impact. After a discussion, the Commission voted with a 3-2 vote, to set the stipend for the City Council to $1,000 per month and the Mayor’s stipend to $1,250 per month.
The Citizens’ Stipend Setting Commission held their second and final Public Hearing on April 30, 2026, Staff and Commissioners discussed the Council’s current stipend, the growth of the City, the state of the economy, and the amount of time Council spends on City business. Ultimately, the Commission approved with their written recommendation by Resolution that will then go before Council for consideration.
Staff respectfully request that the City Council formally accept the Citizens’ Stipend Setting Commission’s recommendation to increase the City Council’s monthly stipend to $1,000 and the Mayor’s monthly stipend to $1,250. The current annual cost of the monthly stipend is $46,505. The cost of the proposed stipend would be $93,656 including employer taxes. This is an increase of $47,151 or 101% annually.
IMPACT ON RESOURCES
The additional stipend amount increases City Council personnel costs by $47,151 annually. Since the increase in the stipend will be effective January 1, 2026 (6 months), the increase for FY 2026-27 is $23,575. If approved the increase will be included and presented to City Council as part of Errata of the Fiscal Year 2026-27 proposed budget. Future stipend costs will be included in the budget process in future years.
ATTACHMENTS
1. Citizens’ Stipend Setting Commission’s Written Recommendation
2. Resolution 2026-25