(1) Vacancies in the office of mayor or city council in a city of the metropolitan class shall be filled as provided in section 32-568.

(2)(a) Salaries of the mayor and members of the city council shall be determined by ordinance subject to the requirements in this section. Except as provided in subdivision (b) of this subsection, no such 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. No such salary shall be increased more than once every two fiscal years. The ordinance may establish the salary for the mayor or the city council members or both. The salary change for the mayor shall not take effect until the end of the term of the mayor in office at the time of the adoption of the ordinance. The salary change for the city council members shall take effect as soon as permitted under Article III, section 19, of the Constitution of Nebraska.

(b) The city council 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. If the salary change for the mayor is approved by a majority of the voters voting on the issue, the salary change shall take effect at the end of the term of the mayor in office at the time of the election. If the salary change for the city council members is approved by a majority of the voters voting on the issue, the salary change shall take effect as soon as permitted under Article III, section 19, of the Constitution of Nebraska.