City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: January 16, 2024
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-02 Amendment #2 to the Classification Plan - COLA Increase
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2024-02, A Resolution of the City Council of the City of Gonzales Approving Amendment #2 to the City of Gonzales Classification Plan for the Fiscal Year 2023-2024.
BACKGROUND
Each year, the City is required to adopt a Summary of Job Classifications and Salary Schedule, which reflects all Council approved classifications and compensation. Amendments to the Schedule may occur during the fiscal year and are submitted to Council for approval.
On January 1, 2024, California State law increases the 2024 minimum wage to $16.00 per hour for all employers regardless of the number of employees. As a result, it is necessary to make adjustments to some of the City’s part-time hourly pay rates. A Resolution and updated Fiscal Year 2023-24 Salary Schedule is presented at this same January 16, 2024 Council meeting.
On January 6, 2024, in accordance with approved employee MOU’s, COLA increases became effective and require updating the City of Gonzales Classification Plan once again. It is a requirement of CalPERS to have an up-to-date approved Salary Plan for each adjustment to the City of Gonzales Classification Plan.
REVIEW AND ANALYSIS
AGENDA
ITEM
12 In June 2023, the City Council adopted the FY 2023-2024 Budget, which included the Summary of Job Classifications and Salary Schedule. This Amendment to the FY 2023-2024 Salary Schedule is necessary to memorialize the increases stated in the approved employee group MOUs. There is no impact on the FY 2023- 2024 budget since the budget was prepared taking these increases into account.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Paying competitive wages encourages our youth with growth opportunities.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ___No ___ NA
Explain: It is necessary for the City to comply with State Wage and Hour laws which also provides for enhanced quality of life.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. ___ Yes ___No X NA Explain: The City is required to comply with the new Minimum Wage Order effective January 1, 2024.
Strong fiscal reporting allows us to provide appropriate resources for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see above.
ALTERNATIVES
The following alternative are provided for Council Consideration.
1. Adopt the Resolution;
2. Modify and adopt the Resolution;
3. Do not adopt the Resolution and direct staff to consider other options; or
4. Provide staff other direction
BUDGET IMPACT
There is no financial impact with the adoption of this resolution. Increases were factored into the FY 2023-2024 Budget when it was prepared.
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2024-02, A Resolution of the City Council of the City of Gonzales Approving Amendment #2 to the City of Gonzales Classification Plan for the Fiscal Year 2023-2024.
Attachments:
1. Resol 2024-02