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AGENDA ITEM REVIEW FORM
6.C.
Regular City Council Meeting
Meeting Date:
01/08/2025
Department Head:
Adela Cortez
Submitted By:
Adela Cortez, Director Human Resources, Human Resources Department
Action Requested:
Motion

ITEM:

Discussion and possible action on any and all matters regarding strategy for implementing salary adjustments.  (Adela Cortez, Director of Human Resources)

SUMMARY:

Public Sector Personnel Consultants conducted a base salary study in early 2024, with the results and implementation presented during the City Council Meeting on June 12, 2024. 
 
The study revealed that the City is not a competitive employer as 83% of the benchmarked jobs are more than 5% below prevailing market rates.  This disparity affects 268 employees whose salaries currently fall below the minimum of the proposed salary range for their positions.
 
Key recommendations from the study included: 
  • Establishing a salary competitiveness policy aligned with prevailing market rates.
  • Adopting the proposed Salary Range Assignments for FY 2025.
  • Adjusting the salaries of all employees currently below the minimum salary range to meet the minimum on the plan’s effective date.
  • Annually updating the salary plan by reallocating job classes to appropriate salary ranges from the proposed table.
  • Utilizing the salary range linkage guide for assigning non-benchmark job classes during annual updates.
During the Fiscal Year 2024-2025 Budget Process, the City allocated $850,000 to the City Administration Department to address salary adjustments.  Further financial analysis identified an additional $363,000 from savings generated by existing vacancies across various General Fund departments.  After accounting for fringe benefits, the total available funding for salary increases amounts to $955,000.

The total cost to bring all affected employees to 100% of the minimum salary range is approximately $1,430,558 plus fringe benefits, bringing the total to approximately $1,816,809.  Given the limited funds, other options were considered to bring employees to 97% ($1,417,306), 95% ($1,057,714), or 92.5% ($748,393) of the market minimum.

Based on the available funding, it is recommended to proceed with adjusting the salaries of the 268 affected employees to 95% of the market minimum.  This approach ensures a quicker path to aligning all salaries with the minimum range while balancing financial constraints.

If approved, salary adjustments will be processed effective January 11, and employees will see their adjustment on their paychecks for January 31, 2024.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE FUNDING AT 95% OF THE MINIMUM MARKET AS THE STRATEGY FOR IMPLEMENTATION OF SALARY ADJUSTMENTS.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
YES
CITY/STATE/FEDERAL FUNDS:
CITY
TOTAL:
$1,213,000
BUDGETED AMOUNT:
$850,000
AVAILABLE AMOUNT TO TRANSFER:
$363,000
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
City Administration GL: 100-115-51000

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

To facilitate the implementation of the new salary structure, we are requesting City Council approval for the following actions:
  1. Authorize the reallocation of the $850,000 Salary Adjustment Budget from the City Administration department GL Account 100-115-51000 Salary Classification to other city departments as required XXX-XXX-50XXX Salaries Line.
  2. Approve a budget transfer of $363,000 from various General Fund departmental savings 100-XXX-50XXX to the appropriate departments as required to implement the proposed salary adjustments.

Attachments