Item #03
Date: January 20, 2026
To: Mayor and City Council
From: Anissa Leung, Finance Director
Brant Bordsen, City Attorney
Subject: City Manager Pay Scale/Benefits
Recommendation:
Pass a Motion to 1) increase the City Manager’s annual salary by 4% retroactive to March 1, 2025 and include an additional 4% effective March 1, 2026 2) authorize staff to procure a $500,000 term life insurance policy 3) if the City puts in an electric charging station, the Council authorizes the City Manager to utilize the station at no cost 4) and adopt Resolution 2026-XX and 5) authorize the Finance Director to make supplemental appropriations of $19,025 to the appropriate salary and benefit accounts.
Background:
Pursuant to negotiations during closed session, staff prepared the necessary payroll documents to support their decision. In an effort to stay competitive with other Agencies, it has been determined that the pay scale for the City Manager (CM) position should be raised. Currently, the CM annual salary is $205,608. The new salary for March 1, 2025 would be $213,832, and on March 1, 2026, the salary will be increased to $222,386 annually. It was also discussed to update the life insurance policy for the City Manager from the current $100,000 coverage to a $500,000 term life policy. Also, if the City installs an electrical charging station, the City Manager will be authorized to utilize the station at no cost.
Fiscal Analysis:
The proposed increase will include salaries, CalPERS (retirement), and Medicare in the amount of $14,269 to the General Fund and $4,756 to the Enterprise Fund as the City Manager salary is allocated to these two funds accordingly.