DATE: July 20, 2026
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: UPDATED CITY/DISTRICT PAY PLAN FOR FISCAL YEAR 2026- 2027 EFFECTIVE JULY 1, 2026
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (hereafter referred to as “City Council”) adopt resolutions approving the updated Pay Plan for Fiscal Years 2026-2027, effective July 1, 2026.
BACKGROUND/ANALYSIS
The City Council approves a Pay Plan at a regularly scheduled meeting as part of the budget adoption process or amends the Pay Plan if there are changes during the fiscal year.
On May 5, 2025, the City Council approved the unrepresented employee’s compensation and benefits plan, effective May 1, 2025. Within the approved compensation and benefits plan, a general wage increase is provided effective on July 1, 2026. This wage increase is equal to the percentage movement of the San Francisco-Hayward-Oakland CPI-U April 2025 to April 2026, with a minimum of 3% and a maximum of 5%. The CPI-U percentage for April 2025 to April 2026 is 3.8%.
In addition, on June 1, 2026, the City Council approved the memorandum of understanding (MOU) between the City and the Foster City Police Officers Association (FCPOA). Within the approved MOU, a general wage increase plus a market
adjustment is provided effective July 1, 2026. This wage increase is equal to the percentage movement of the San Francisco-Hayward-Oakland CPI-U April 2025 to April 2026, with a minimum of 3% and a maximum of 5% plus a market adjustment. The CPI-U percentage for April 2025 to April 2026 is 3.8%. The market adjustments for the FCPOA classifications are:
Police Dispatcher – 2.5%
Lead Police Dispatcher – 2.5%
Police Dispatcher Supervisor – 2.5%
Police Officer – 5%
Police Corporal – 5%
Police Sergeant – 5%
The salary steps of the attached Pay Plan have updated salaries, increased by 3.8%, for all unrepresented employees.
The salary steps of the attached Pay Plan have updated salaries, increased by 3.8% plus market adjustments for all Foster City Police Officers Association employees.
To meet CalPERS requirements under Government Code 20636 and CCR section 570.5, which requires public agencies to provide a publicly available pay schedule, which is required to be duly approved and adopted by the Council, staff is bringing this forward to ensure the City's pay schedule is updated with the new pay rates based on the approved FCPOA MOU and unrepresented employees compensation and benefits plan. Staff requests approval of the resolutions to approve the amended Pay Plan for Fiscal Year 2026-2027 which will be effective July 1, 2026. Upon approval, staff will publish the updated Pay Plan on the City's website for public access on or near the effective date of this plan.
California Environmental Quality Act
CEQA General Rule Exemption
FISCAL IMPACT
The updated FY 2026-2027 Pay Plan reflects the approved salary ranges provided in the FCPOA MOU and unrepresented employees’ compensation and benefits plan. The FY 2026-2027 budget includes the 3.8% cost of living increase as well as the terms of the new FCPOA MOU.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – City/District Pay Plan for FY 2026-2027 Effective July 1, 2026 (redline) Attachment 4 – City/District Pay Plan for FY 2026-2027 Effective July 1, 2026