(1) The presiding municipal judge, in consultation with the associate municipal judge, is hereby authorized to appoint assistant municipal judges, from active members of the Oregon State Bar Association, approved by that Association and in good standing, as the presiding officer shall determine necessary from time to time to hold office and conduct sessions of the municipal court.

(2) Upon recommendation of the presiding municipal judge, the city manager shall determine the compensation to be paid any assistant judge so appointed. The total amount paid to all assistant judges shall not exceed existing budget allocations identified for that purpose unless otherwise approved by the city council.