Staff Report
City Council
Item No. {{section.number}}.G
Meeting Date: June 25, 2025
From: Eugenia Torres, Human Resources Manager
Title: Amendment to Executive, Administrative, and Professional Employee Regulations – Compensation and Healthcare Benefit Adjustments RECOMMENDATION:
To approve an amendment to the Executive, Administrative, and Professional Employee Regulations to: (1) Adjust the salary increase from 2.6% to 3.0% effective the first full pay period after July 1, 2025, to maintain competitive market positioning; (2) Establish healthcare maximum contributions for calendar years 2026 and 2027 as follows:
•Unit Member Only: $1,000 (2026), $1050 (2027)
•Unit Member+1: $1950 (2026), $2050 (2027)
•Family: $2700 (2026), $2800 (2027)
BACKGROUND:
On January 22, 2025, the City Council approved comprehensive updates to the Executive, Administrative, and Professional Employee Regulations, which included a structured salary increase plan with:
•2.6% effective the first full pay period after July 1, 2025 •2.6% effective the first full pay period after July 1, 2026 Since the approval of these regulations, other bargaining unit contracts have been completed and further consideration of economic conditions and inflationary pressures indicates the previously approved 2.6% increase may be insufficient to maintain the City’s competitive position in attracting and retaining qualified professional staff.
For the healthcare maximum, no changes were initially recommended until the Police Officer Association was negotiated/determined.
DISCUSSION:
The Human Resources Department recommends two key amendments to better align with current economic conditions and provide operational consistency:
1. Salary Adjustment. Adjusting the salary increase to better align with current economic conditions adjusting the salary increase to better align with current economic conditions and ensure competitive compensation for executive, administrative, and professional positions. Considerations include:
Economic Environment:
•Current inflationary trends continue to impact the cost of living •General economic conditions suggest the need for higher compensation adjustments
•Employee retention remains a priority to maintain operational continuity Organizational Benefits:
•The proposed 3% increase supports employee retention initiatives •Enhanced compensation competitiveness reduces turnover costs •Maintains consistency across units
Fiscal Considerations:
•The additional 0.4% increase represents a modest adjustment and is included in the adopted budget
•Enhanced retention reduces recruitment and training costs Proposed Amendment: Revise Article 3.1(b) to read: “3% effective the first full pay period after July 1, 2025.”
2. Healthcare Maximum Contributions. Establishing healthcare maximum contributions for calendar years 2026 and 2027 provides budget predictability and aligns with other employee group agreements.
Proposed Healthcare Maximum Contributions:
Category 2026 2027
Unit Member Only $1000 $1050
Unit Member + 1 $1950 $2050
Family $2700 $2800
The proposed increases reflect anticipated healthcare cost trends and maintain alignment with negotiated agreements for other employee groups.
FISCAL IMPACT:
The 3% salary and benefit increase has been included in the adopted biennial budget.
The increase from 2.6% to 3% will have an annual cost increase of $32,370 in FY 25-26 and $33,850 in FY 26-27. The healthcare cap increase has a potential cost increase of $9,000 in FY 25-26 and $33,000 in FY 26-27.
FIVE-YEAR STRATEGIC PLAN:
Goal A- SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity, and inclusion driven employee programs and experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards.
This amendment directly supports the strategic objective by ensuring competitive compensation that attracts and retains high-quality professional staff.
ATTACHMENTS:
1. Amendment to Article 3.1 - Executive, Administrative, and Professional Employee Regulations