CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Adoption of Fiscal Year 2026 – 2027 Salary Schedule Effective July 1, 2026 Meeting Date: October 13, 2026
RECOMMENDATION:
Staff recommends that the City Council adopt the attached Resolution approving the Fiscal Year 2026–2027 Salary Schedule, effective July 1, 2026.
BACKGROUND:
The City maintains a comprehensive salary schedule that identifies the approved salary ranges for City classifications. The salary schedule was updated as necessary to reflect negotiated compensation changes, classification changes, and other Council-approved compensation actions.
On June 23, 2026, the City Council approved changes to compensation and benefits for Fiscal Years 2026–2027 through 2029–2030, including the Memorandum of Understanding (MOU) with the City of Commerce Employees Association – AFSCME Local 773, as well as compensation and benefit changes for Unrepresented/Confidential and Executive Management employees.
As part of the implementation of these approved changes Human Resources has reviewed and updated the City's salary schedule and made the necessary adjustments to accurately reflect that the salary ranges and compensation provisions are appropriately aligned with the approved MOU and related compensation actions for AFSCME represented, Unrepresented/Confidential, and Executive Management employees.
In addition to the organizational changes included in the FY 2026-28 budget, the salary schedule has also been updated to reflect the establishment of the Budget Analyst and Transit Safety and Training Coordinator classifications. The Budget Analyst classification will replace the existing Finance Manager classification to better meet the needs of the current organizational structure and operational needs. The Transit Safety and Training Coordinator classification will be an upgrade to the existing Bus Operator II classification and reflect an upgraded level of responsibility related to transit safety, employee training, coordination, and oversight.
ANALYSIS:
The proposed Fiscal Year 2026–2027 Salary Schedule reflects the compensation changes approved by the City Council and is effective July 1, 2026.
The salary schedule includes the 3.5% Cost of Living Adjustment (COLA) effective July 1, 2026 which is consistent with the approved AFSCME MOU and applicable compensation actions for the respective employee groups.
Human Resources also updated all salary schedules to appropriately reflect the salary ranges and other compensation changes contained in the newly approved MOU and related Council actions. These updates ensure that the salary schedule accurately reflects the City's current approved compensation structure.
Adoption of the salary schedule will establish the official salary ranges for City classifications for Fiscal Year 2026–2027.
ALTERNATIVES:
Approve staff recommendation.
Provide staff with further direction.
FISCAL IMPACT:
The proposed FY 2026-27 Salary Schedule reflects compensation adjustments previously approved by the City Council, including the 3.5% Cost of Living Adjustment (COLA) effective July 1, 2026, and other compensation actions approved through applicable MOU and Council actions. The fiscal impact associated with these compensation changes were incorporated into the adopted FY 2026-28 Biennial Budget. Adoption of the salary schedule does not authorize any new compensation adjustments or require additional appropriations beyond those already approved by the City Council.
RELATIONSHIP TO STRATEGIC GOALS:
This request supports the City’s strategic efforts to strengthen city operations, enhance efficiency, and improve service delivery to the community by maintaining a compensation structure that accurately represents the current organizational needs and supports effective recruitment, retention, and workforce management. Staff respectfully recommends City Council approve and move forward with this important organizational initiative.
Recommended by: Marlo Revilla, Human Resources Manager Reviewed by: Alvaro Castellon, Finance Director Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
ATTACHMENTS:
Resolution
Exhibit A – Executive Salary Schedule, effective 07/01/26 Exhibit B – Full-Time Salary Schedule, effective 07/01/26 Exhibit C – Part-Time Salary Schedule, effective 07/01/26