There shall be a city manager. The council shall appoint him for an indefinite term by a vote of a majority of all its members, and shall fix his compensation. It shall choose him solely on the basis of his executive and administrative qualifications. At the time of his appointment, he need not be a resident of the city or state; but, during his tenure of office, he shall reside within the city. The council may suspend or remove the city manager at any time by a vote of a majority of all its members.
The salary of the city manager shall not exceed $5,000.00 per year unless such maximum is increased by ordinance. An ordinance increasing or decreasing the maximum salary which the city manager may receive shall be a nonemergency ordinance; and if a sufficient and legal referendum petition is properly filed within thirty days after its passage and publication, the ordinance shall not go into effect until approved by a majority of the qualified electors of the city voting on the question at an election.