DATE:
November 18, 2025
TO:
Mayor and City Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Assistant City Manager
SUBJECT:
Fiscal Year 2025-26 First Quarter Budget Review
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District receive and file the Fiscal Year (FY) 2025-26 First Quarter Budget Review, and the following resolutions, amending the FY 2025-26 Budgets for the City of Hesperia, and the Hesperia Water District, be approved:
City of Hesperia Resolution No. 2025-47
Hesperia Water District HWD No. 2025-15
In addition, it is recommended that the City Council and Board of Directors of the Hesperia Housing Authority (HHA) and Hesperia Water District (HWD) adopt Joint Resolution No. 2025-39, HHA 2025-05, HWD 2025-10 approving the Corrected and Revised Combined Compensation Schedule and Joint Resolution No. 2025-45, HHA 2025-06, and HWD 2025-14 approving the City’s Non-Represented Compensation Benefit Plan Section 9.
BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2025-26 First Quarter Budget Review for the City Council, Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action.
Additionally, for all personnel changes, the California Public Employees' Retirement System (CalPERS) requires that the City Council, Commissions, and Board of Directors (City Council) approve and adopt a Combined Compensation Schedule whenever there are changes to salaries. This requirement is needed for CalPERS to recognize the position and ensure that the employee receives service credit. The most recently approved and adopted Combined Compensation Schedule occurred on July 15, 2025, with the adoption of Joint Resolution No. 2025-24, HHA 2025-04 and HWD 2025-06.
City Council adopted Joint Resolution No 2024-25, Resolution HHA 2024-04, and Resolution HWD 2024-08, which established the Non-Represented Employees’ Compensation and Benefits Plan which sections can be modified individually or in whole by subsequent Council action.
ISSUES/ANALYSIS
The attached document entitled “Fiscal Year 2025-26 First Quarter Budget Review” includes a report on the status of the City’s FY 2025-26 Budget and a financial review of the first three months experience of the current fiscal year. The report format is used to facilitate the review of complex financial information for an efficient and effective financial review process.
Following adoption of the Fiscal Year 2025–26 Operating Budget, staff conducted a review of the Combined Compensation Schedule to ensure that all positions and salary ranges align with approved budget actions, applicable resolutions, memoranda of understanding, and employment agreements. As part of this review, minor administrative updates were made to certain part-time classifications and to the salaries of employees with employment agreements to ensure consistency with the compensation data reported to CalPERS and to maintain overall compliance. As well, the Non-Represented insurance premiums were included in the adoption of the Fiscal Year 2025-26 Operating Budget, but were not adopted for the Non-Represented Employees’ Compensation and Benefits Plan. The following amendment will be included in Non-Represented Employees’ Compensation and Benefits Plan.
Section 9:
Effective December 1, 2025, for the January 2026 insurance premiums, the City shall pay up to $1,750 per month; the employee shall be responsible for paying the difference, or the amount greater than $1,750, through payroll deduction.
Due to pending changes in the 1st-quarter budget review, a revised compensation schedule will also need to be approved.
CITY GOAL SUPPORTED BY THIS ITEM
Financial Health - Maintain a balanced budget and adequate reserves
FISCAL IMPACT
See attached Fiscal Year 2025-26 First Quarter Budget Review Report document.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Fiscal Year 2025-26 First Quarter Budget Review Report
Resolution No. 2025-47
Resolution HWD No. 2025-15
Joint Resolution 2025-39, HWD 2025-10, and HHA 2025-05
Joint Resolution 2025-45, HWD 2025-14, and HHA 2025-06
Combined Compensation Schedule Revised November 18, 2025 and Effective July 14, 2025 Combined Compensation Schedule Revised November 18, 2025 and Effective November 19, 2025 Combined Compensation Schedule Revised November 18, 2025 and Effective January 1, 2024 Combined Compensation Schedule Revised November 18, 2025, and Effective September 25, 2023 Combined Compensation Schedule Revised November 18, 2025 and Effective August 21, 2023 Combined Compensation Schedule Revised November 18, 2025 and Effective July 1, 2023 Page PAGE 2 of NUMPAGES 1
Staff Report to the Council/Board
Fiscal Year 2025-26 First Quarter Budget Review
November 18, 2025
City of Hesperia
STAFF REPORT