Discussion and review of the proposed budget adjustments for Fiscal Year 2026, including salary adjustments, service reductions, capital project impacts, and new personnel requests. Informational session, no action.  (Roula Encinas, Director of Finance)

As directed by the City Council during the last work session held on February 5, 2025, where the financial stability of the City of San Luis for the next five years was reviewed, this work session will present proposed adjustments related to employee compensation, service reductions, capital projects, and personnel requests. The Finance Department will provide an overview of the following:

Salary Adjustments:

• Proposal to adjust the base salary market rate to 97.5% for FY2025 and bring employees to 100% of the market rate in FY2026.
• Introduction of a Longevity Pay Policy for employees who have already reached the minimum market base rate.

Service Reductions:

• Tentative reductions in services provided to both the community and city employees to align expenditure with available resources. 

Capital Project Budget Adjustments:

• Proposed modifications and potential reductions in planned capital improvement projects to accommodate fiscal constraints.

Personnel Requests & Salary Re-classifications:

• Evaluation of new personnel requests and reclassification proposals for existing positions in alignment with budgetary limitations and operational needs.

These adjustments are designed to balance financial sustainability with service continuity and employee retention.