Facing a financial shortfall, Guadalupe City Council members voted Tuesday to cut their own salaries plus the pay of two other elected officials, taking a different approach than their neighbors to the east.

Guadalupe staff raised the issue as one more way for the cash-strapped city to save money.

“It’s not a lot, but it’s a step in the right direction,” City Administrator David Trujillo said. “It’s getting everybody involved.”

The Guadalupe discussion occurred weeks after the Santa Maria council majority agreed to boost its own pay while facing financial woes and asking voters to hike the sales tax rate.

Guadalupe spends $2,100 a month on stipends for the mayor, four councilmembers, city clerk and city treasurer.

“I’m hoping to lead from the top down,” Trujillo added, explaining an amendment to his contract Sept. 22 to waive his vehicle allowance and his cost of living adjustment for next year to help with the city’s budget shortfall.

Originally, staff suggested a $300 cut to the stipends, so most members would get $200 while the mayor would have received $450. Council members are paid $500 monthly and the mayor is paid $750 monthly currently.

Councilmember Amelia Villegas suggested the payments should be slashed to $150 a month each.

“It increases the savings,” she said.

Councilmember Whitney Furness disagreed, saying the item should be delayed until at least January.

“For the amount of work and the amount of work that’s expected from us, you’re not going to get the quality of people able to do this if we don’t offer incentive to be here especially for those folks that are working, with children,” Furness said. 

Mayor Ariston Julian said he raised the item, noting that when the panel previously raised the rate staff members — no longer working for the city —claimed the city had a reserve of almost $1 million.

He also suggested waiting for the new council to take office. 

But City Attorney Phil Sinco said state law requires a sitting council cannot change its stipend. 

If the council delayed the item until the new members take office in December, the change would not take effect for two years, or after the next election.

Robert Diaz, who is running for one of the vacant council seats, urged the panel to act now.

“I’m for it. Lower it as much as you can, as much is reasonable and I’m down to work still,” Diaz said.

Frances Romero, a former mayor, recalled a prior council once took the same reduction as employees, putting the stipend under $150.

“How do you save a dollar? You save where you can and this is low-hanging fruit,” Romero said. 

After tossing out various suggestions, the council voted to trim stipends to $150 per month for all five council members, including the mayor, along with the treasurer and city clerk.

Two Cities, Two Strategies for Council Pay

Guadalupe’s decision marked a stark contrast from the Santa Maria City Council which voted for a 20% raise for its own members, while also dealing with a big deficit and asking voters to approve an increase to the sales tax rate.

On Sept. 1 the City Council voted 4-1 to hike the council salaries by more $340 each, going from $1,706.90 to $2,048.28 a month. 

The mayor’s rate would climb to $2,298.28, recognizing the extra duties and time required for the role. 

But the increase comes as Santa Maria deals with a multi-million dollar deficit that led to program cutbacks and higher fees.

Additionally, the vote for the salary hike came as Santa Maria is asking voters to approve a one-half percent sales tax increase to get more revenue in the city coffers.

If approved, Measure C on the November ballot would see the sales tax rate rise from 8.75% to 9.25% for purchases in Santa Maria and proving an estimated $13 million in added funds annually.

Measure C needs more than 50% approval to pass.

District 3 Councilmember Gloria Soto twice voted against the stipend increase, noting the deficit and request for votes to hike the sales tax.

District 1 Councilmember Ricardo “Richard” Batalla rejected it initially and then voted for the increase in the Sept. 1 meeting. 

Mayor Alice Patino and councilmembers Gloria Flores and Maribel Aguilera-Hernandez voted in favor of the increase.

Under state law regarding the stipend changes, the increase in Santa Maria and decrease in Guadalupe will be implemented after the new members take office following the Nov. 3 election.