City of Gonzales
FINANCE DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 17, 2026
FROM: Mike Howard, Finance Director
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2026-08 Authorizing a One-Time Lump Sum Payment to the Unrepresented City Staff Similar to the Public Safety 2026 MOU Extensions
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2026-08, A Resolution of the City Council of the City of Gonzales Authorizing a one-time lump sum payment to the unrepresented City staff similar to the Public Safety 2026 MOU Extensions.
BACKGROUND
The Gonzales Police Officers Association and Local 5388 International Association of Fire Fighters have agreed to a six-month extension of the 2025 MOU’s that will run through June 30, 2026.
The City wishes to treat the unrepresented employees in a similar manner and propose a lump sum payment for the period of January 2026 through June 2026 in lieu of a COLA. In July 2026, the City will reevaluate its financial position and consider an appropriate COLA.
REVIEW AND ANALYSIS
In June 2025, the City Council adopted the FY 2025-2026 Budget, which included the Summary of Job Classifications and Salary Schedule. The approved budget included and estimated salary increase at that time with assumptions that additional revenue sources would be found. Staff believes that the proposed one-time lump sum payment is an equitable alternative until the City can ensure a new revenue source is secured for the future.
AGENDA
ITEM
17 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 assists in employee retention and satisfaction.
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: The City wishes to remain competitive with salaries and benefits given the current financial strains of the city; and it is important to show staff that their work is valued.
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: Please see above.
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 2025-2026 Budget when it was prepared.
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2026-08, A Resolution of the City Council of the City of Gonzales Authorizing a one-time lump sum payment to the unrepresented City staff similar to the Public Safety 2026 MOU Extensions.
Attachments:
1. Resolution No. 2026-08