(1) Appointed Officials. The compensation for the services of the city manager and of the municipal judge shall be in the amount approved by the council. The compensation for services of all other appointed city officers and employees, except employees and officers of the water commission, shall be the amount fixed by the city manager, subject to budgetary limitations and other general limits set by ordinance of the city council.

(2) Elected Officials. The mayor and councilmembers shall not receive a salary for services rendered in that capacity except for reimbursement of actual expenses incurred in carrying out the duties thereof.