(1) Any vacancy occurring in the board of directors shall be filled for the unexpired term by the remaining members thereof within thirty days after the vacancy occurs. It is the intent and purpose to render the board of directors nonpartisan in character.

(2)(a) The board of directors shall set the salaries of the chairperson and other members of the board of directors as provided in this subsection. The chairperson of the board of directors of a metropolitan utilities district shall be paid, as compensation for his or her services, the sum of one thousand two hundred sixty dollars per month as of July 19, 2024. Each of the other members of the board of directors shall be paid, as compensation for his or her services, the sum of one thousand one hundred twenty dollars per month as of July 19, 2024.

(b) Subject to subdivision (c) of this subsection, adjustments in compensation shall be made only at regular meetings of the board of directors. Except as provided in subdivision (c) of this subsection, no salary shall 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. The salaries of the chairperson and other members of such board shall not be increased more often than once every two calendar years.

(c) The board of directors may place the issue on the ballot of whether to increase the salary of the chairperson and other members of such board by more than the percentage amount permitted in subdivision (b) of this subsection at the next statewide general election for approval by the registered voters of the metropolitan utilities district. The board of directors shall determine the percentage of increase and hold a public hearing regarding the increase. If the board of directors approves the percentage by a vote of at least two-thirds of the members of the board of directors, the board of directors 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.

(3) Members of the board of directors may be considered employees of the district for purposes of participation in medical and dental plans of insurance offered to regular employees. The dollar amount of any health insurance premiums paid from the funds of the district for the benefit of a member of the board of directors may be in addition to the amount of compensation authorized to be paid to such director pursuant to this section.

(4) The chairperson and other members of such board of directors shall also be reimbursed for actual and necessary expenses incurred in the performance of their official duties.