(1)(a) The officers and employees of a city under the commission plan of government shall receive such compensation as the mayor and city council shall fix by ordinance subject to the requirements in this section. Except as provided in subdivision (b) of this subsection, the salary of the mayor or city council member of a city of the primary or metropolitan class shall not be increased by more than the average percentage change in the unadjusted Consumer Price Index for All Urban Consumers published by the Federal Bureau for Labor Statistics for the period since the last salary increase plus one percent. No such salary shall be increased more than once every two fiscal years.

(b) The city council of a city of the metropolitan or primary class may place the issue on the ballot of whether to increase the salary of the mayor or the city council members or both by more than the amount permitted in subdivision (a) of this subsection for approval by the registered voters of the city. The city council shall determine the percentage of increase and hold a public hearing regarding the increase. If the city council approves the percentage by a vote of at least two-thirds of the members of the city council, the city clerk shall transmit the issue to the election commissioner or county clerk for placement on the ballot at the next statewide general election subject to section 32-559.

(2) The salary of any elective officer in a city under the commission plan of government shall not be increased or diminished during the term for which he or she was elected, except that when there are officers elected to a city council, board, or commission having more than one member and the terms of one or more members commence and end at different times, the compensation of all members of such city council, board, or commission may be increased or diminished at the beginning of the full term of any member thereof. No person who has resigned or vacated any office shall be eligible to be elected or appointed to such office during the time for which he or she was elected when, during the same time, the salary has been increased.

(3) The salary or compensation of all other officers or employees of a city under the commission plan of government shall be determined when they are appointed or elected by the city council, board, or commission and shall be payable at such times or for such periods as the city council, board, or commission shall determine.