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Staff Report - Amend City Manager Salary Range and Salary Schedule

Hercules City Council
February 24, 2026

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Staff Report - Amend City Manager Salary Range and Salary Schedule
Meeting
February 24, 2026
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Hercules City Council
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 24, 2026
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Kristi Carter, Human Resources Manager
SUBJECT: Adopt a Resolution to Amend the Salary Range for the City Manager Classification and Amend the FY 2025-2026 Master Salary Schedule pursuant to California Public Employees Retirement System (CalPERS) RECOMMENDED ACTION:

Adopt a Resolution approving an amended salary range for the City Manager classification and approving an amended Fiscal Year 2025-2026 Master Salary Schedule pursuant to California Public Employees Retirement System (“CalPERS”) effective July 6, 2025 (last updated on February 12, 2026).

BACKGROUND:

The City Manager classification is a critical executive position responsible for overseeing daily operations, implementing City Council policy direction, managing staff, and ensuring the effective delivery of essential public services.

To ensure the City remains competitive in recruiting and retaining qualified executive leadership, staff conducted a salary survey of comparable agencies, focusing on cities of similar population size, service levels, organizational complexity, and geographic labor market considerations.

The survey results indicate that the City’s current salary rate for the City Manager classification is competitive within the market. However, the classification does not currently include a defined salary range. Establishing a minimum hourly rate will create a formal salary range, provide greater flexibility in recruitment and appointment, and better align the City’s compensation structure with prevailing market practices.

ANALYSIS:

Based on the salary survey, comparable agencies offer salaries that reflect the scope of responsibility and experience required for the City Manager role. The survey confirms that the City’s current hourly rate is competitive; however, the classification does not currently include a defined salary range.

To establish a formal salary range and provide appropriate flexibility for recruitment and appointment, staff recommends establishing a minimum hourly rate while maintaining the existing maximum.

Establishing a pay range for the City Manager classification:

Establishes a defined and competitive salary range for the City Manager classification Maintains the City’s competitiveness in the executive labor market Supports recruitment and retention efforts
Preserves fiscal responsibility by retaining the current maximum hourly rate The proposed range of $130.00 to $145.3638 per hour reflects market conditions and aligns with compensation practices among comparable agencies, while preserving the City Council’s discretion to negotiate within the approved range.

CalPERS regulations require that pay rates for contract employees be reflected on a publicly adopted and posted salary schedule. Approval of the proposed minimum hourly rate will require an update to the City’s FY 2025–2026 CalPERS-compliant Master Salary Schedule to ensure continued compliance.

FISCAL IMPACT:

There is no anticipated fiscal impact, as the FY 25-26 Budget accommodates the highest salary range for this position.

ATTACHMENTS:

Resolution
Amended Fiscal Year 2025-2026 Master Salary Schedule effective July 6, 2025 (last updated on February 12, 2026)

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