San Diego Union v. City Council

In San Diego Union v. City Council (1983) 146 Cal. App. 3d 947, the court discussed the purposes behind requiring discussion and decisions regarding compensation to be held publicly. "Salaries and other terms of compensation constitute municipal budgetary matters of substantial public interest warranting open discussion and eventual electoral public ratification. . . . It is difficult to imagine a more critical time for public scrutiny of its governmental decision-making process than when the governmental entity is determining how it shall spend public funds. With ever-increasing demands on public funds which have dwindled so drastically since the passage of Proposition 13, secrecy cannot be condoned in budgetary determinations, including the establishment of salaries." Salary determinations bring into play various factors, including "available funds, other city funding priorities, and relative compensation of similar positions with the city and in other jurisdictions. . . . Each of these considerations is of acute public interest." (Id. at p. 955.) The court concluded that although performance evaluations of employees fell within the personnel exception of Government Code section 54957, and could take place in closed sessions, determinations of salaries must be discussed and decided in open session.