STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 8, 2025
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
Kristi Carter, Human Resources Manager
SUBJECT: Approve Additional One-Time Non-Pensionable Payment of 2% of Total Gross Salary for the 2023-24 Fiscal Year for Employees Covered Under the Executive Level, Mid-Management, and Non-Represented Employee Pay Plans RECOMMENDED ACTION:
Staff recommends that the City Council adopt a Resolution approving an additional 2% one-time non-pensionable payment for employees covered under the Executive Level, Mid-Management, and Non-Represented Pay Plans and authorize the City Manager to execute any related amendments to the approved FY 2024-25 Pay and Benefit Plans.
DISCUSSION:
On July 23, 2024, the City Council approved the FY 2024-25 Pay and Benefit Plans for Executive Level, Mid-Management, and Non-Represented employees, which included a 2% one-time non-pensionable payment of total gross salary for the 2023-24 fiscal year. In recognition of continued service and performance, and to support workforce stability in a competitive labor market, staff recommends approval of an additional 2% one-time non-pensionable payment of total gross salary for FY 2023-24 for employees within these groups.
Consultations with the executive level, mid-management, and non-represented employee groups have been completed; proceeding with the revisions to the Pay Plans for the executive, mid-management, and unrepresented groups is timely. A summary of the changes proposed by the employee groups is set forth below:
Group
Summary of Terms
Total # of employees
Cost
Executive Level
Additional 2% One-Time Non-PERSable retention payment
7 $30,000
Mid-Management
Additional 2% One-Time Non-PERSable retention payment
2 $8,000
Non-Represented
Additional 2% One-Time Non-PERSable retention payment
6 $10,000
This recommendation aligns with the City’s strategic goals of maintaining a competitive total compensation package while ensuring fiscal responsibility and operational effectiveness. This adjustment supports employee morale, retention, and recognition efforts, particularly in a period of constrained recruitment across public agencies.
FISCAL IMPACT:
The adopted FY 2024-25 Budget included funding for the initial 2% one-time payment. This action approves an additional 2% one-time payment, resulting in a cumulative one-time bonus of 4% for eligible Executive Level, Mid-Management, and Non-Represented employees.
The staff recommends that the City Council approve an appropriation for the one-time retention payment of 2% for Executive Level, Mid-Management, and Non-Represented employees. Sufficient one-time funds are available in the General Fund Reserve to cover the cost of this additional payment. The Finance Department has reviewed the impact and confirmed alignment with the City's adopted financial parameters.
ATTACHMENTS:
Resolution
Revised FY 2024-25 Executive Pay and Benefit Plan
Revised FY 2024-25 Mid-Management Pay and Benefit Plan
Revised FY 2024-25 Non-Represented Pay and Benefit Plan Date Page 1