CITY OF MENIFEE
SUBJECT: Authorized Position Listing and Salary Schedule Revision for Fiscal Year 2026/2027
MEETING DATE: October 7, 2026
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Director of Strategic Programs and Initiatives REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution approving the revised Authorized Position Listing and corresponding Salary Schedule based on final revenue-based Cost of Living Adjustments (COLA) pursuant to existing labor group Memorandums of Understanding (MOUs).
DISCUSSION
As part of the existing MOUs negotiated with all the City’s labor groups covering the period of July 1, 2024, through June 30, 2027, an annual base salary increases, or COLA, is included. For the current year, Fiscal Year (FY) 2026/2027, all six bargaining groups included a COLA of 4% effective July 1, 2026.
Additionally, the five bargaining groups listed in Table 1 below were also eligible for a revenue-based salary increase based on the performance of combined ongoing property tax and sales tax revenues (excluding Quality-of-Life taxes and one-time sales tax collections) for the year ended June 30, 2026.
TABLE 1: BARGAINING GROUPS
Bargaining Group
Menifee City Employees’ Association (MCEA)(General Unit) Menifee City Employees’ Association (MCEA)(Professional Unit) Menifee City Employees’ Association (MCEA)(Mid-Managers Unit) Menifee Police Officers Association (POA)
Menifee Police Management Association (PMA)
The additional revenue-based salary increase for the five groups outlined in Table 1 represent an increase of up to 1% based on the following:
City of Menifee Staff Report
Updated FY 2026/2027 Authorized Position Listing & Salary Schedule October 7, 2026
• An additional 0.5% increase if prior year revenues (ongoing property tax and sales tax) exceed estimates by $500,000, or
• An additional 1% increase if prior year revenues (ongoing property tax and sales tax) exceed estimates by $1,000,000.
The City has collected all sales tax and property tax revenues for FY 2025/2026, and staff has confirmed ongoing property tax and sales tax receipts exceeded adopted and adjusted FY 2025/2026 budget estimates by over $1 million. Specifically, receipts compared to the adopted FY 2025/2026 budget were $2.6 million higher for property tax, and $300k higher for sales tax than the adjusted budget.
At the time the Mid-Cycle FY 2026/2027 adjusted budget was adopted in June 2026, the City had not yet received its full sales and property tax revenues. Historically, these are collected through the early fall of each year based on county and state payment schedules. As outlined in the budget adoption report, the Authorized Position Listing approved at that time included a base 4% COLA for all bargaining groups. Staff indicated they would return with a revised listing if revenue performance met the established thresholds.
The revised Authorized Position Listing and Salary Schedule included with this staff report reflect an additional 1% for the positions represented by the five bargaining groups. Executive staff and confidential employees receive the COLA applicable to their corresponding bargaining unit (e.g., executive staff follows the COLA of Mid-Management). The additional 1% COLA will be applied retroactively to July 1, 2026. There are no changes in total positions or Full-Time Equivalents (FTEs), from the adopted budget, as this is a compensation adjustment.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The FY 2026/2027 adopted budget incorporated the additional revenue-based COLA of 1% for the applicable bargaining groups. There would be no additional fiscal impact on the budgeted personnel costs with the implementation of the updated FY 2026/2027 Authorized Position Listing and Salary Schedule. No additional budget appropriation action(s) is required.
ATTACHMENTS
1. Resolution
2. Exhibit A – Authorized Position Listing
3. Exhibit B – FY 26-27 Salary Schedule