(1) Except as provided in subsection (2), a city council member shall hold office for a term of 4 years and until the qualification of a successor.
(2) At the first annual election held after the organization of a city or town under this title, the electors of the city or town shall elect two city council members from each ward, who shall, at the first meeting of the council, decide by lot their terms of office, with one from each ward to hold for a term of 4 years and one for a term of 2 years and until the qualification of their successors. In the succeeding elections, one city council member from each ward must be elected for a 4-year term.