CITY COUNCIL STAFF REPORT
DATE: MAY 12, 2026 PUBLIC HEARING
SUBJECT: REPORT OF EMPLOYEE VACANCIES AND RECRUITMENT AND RETENTION EFFORTS (AB 2561)
FROM: Scott C. Stiles, City Manager
BY: Stephanie George, Director of Human Resources
SUMMARY:
AB 2561 requires public agencies to hold at least one (1) public hearing per fiscal year to discuss vacancies and recruitment and retention efforts. This report discusses the legal obligations under the new law for the City of Palm Springs (“City”), which took effect January 1, 2025.
RECOMMENDATION:
Hold a public hearing and receive and file the annual report on the status of City vacancies, recruitment, and retention efforts, as required by Assembly Bill 2561.
BACKGROUND:
AB 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year. The bill was enacted into law and is codified at Government Code section 3502.3. The new law is effective January 1, 2025.
STAFF ANALYSIS:
In compliance with the new legal obligations, the City is required to do the following:
At least once each fiscal year, at a public hearing before the Palm Springs City Council, the City shall present information regarding the status of vacancies and recruitment and retention efforts (Gov. Code § 3502.3(a)(1)) and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process (Gov. Code § 3502.3(a)(3)).
City Council Staff Report
May 12, 2026 -- Page 2
AB2561 Employee Vacancies And Recruitment And Retention Efforts
1. If the City adopts an annual or multiyear budget during the fiscal year, this presentation must occur prior to the City Council’s adoption of the final budget for the City. (Gov. Code § 3502.3(a)(2).)
2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. There are six bargaining units at the City. (Gov. Code § 3502.3(b).)
3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the City must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. (Gov.
Code § 3502.3(c).)
Authorized Positions and Status of Vacancies
There are 659.5 authorized full-time equivalent (“FTE”) positions included in the FY 2025/26 adopted budget. The positions are distributed amongst the following employee groups:
General Unit - Teamsters – 277
Management Unit - Management Association of Palm Springs (MAPS) – 128.5 Fire Safety - Palm Springs Firefighters’ Association (PSFA) – 82 Fire Management - Palm Springs Fire Management Association (PSFMA) – 6 Police Safety - Palm Springs Police Officers’ Association (PSPOA) – 105 Police Management - Palm Springs Police Management Association (PSPMA) – 6 Unrepresented Group - Executive and Elected Group – 54 The following table reflects the City’s vacancy rates (by employee group) as of March 10, 2026. The Citywide vacancy rate is 9.7% which equates to 64.25 FTE vacant positions and is down from last years’ vacancy rate of 10.1%.
Bargaining Unit Allocated FTE Vacancies Vacancy Rate
General Unit 277 34.25 12%
Management Unit 128.5 17 13%
Fire Safety 82 4 5%
Fire Management 6 0 0%
Police Safety 105 6 6%
Police Management 6 0 0%
Unrepresented Group 54 3 6%
City Council Staff Report
May 12, 2026 -- Page 3
AB2561 Employee Vacancies And Recruitment And Retention Efforts All bargaining units remain below the 20% threshold identified in Government Code section 3502.3 that would trigger additional reporting requirements.
Recruitment Efforts
Position vacancies are posted on the City’s website through GovernmentJobs.com (NEOGOV), the City’s applicant tracking system, making them easily accessible to prospective applicants. To further broaden outreach, the City utilizes industry-specific job boards and targeted mailing lists when appropriate, ensuring vacancies reach candidates with the relevant skills and background. In addition to these platforms, the City encourages prospective candidates to sign up for job alerts in their Neogov account.
These job alerts allow candidates to select areas of interest and receive automatic email notifications when new recruitments are opened in their chosen categories, helping job seekers stay informed and engaged with upcoming opportunities.
Retention Efforts
The City is continuing to invest in employees’ careers, professional development and growth. In calendar year 2025, the City successfully filled 117 positions across multiple departments and classifications. Notably, 35% of those positions were filled through internal promotions, reflecting the City’s ongoing investment in employee development and the success of internal career advancement pathways. Promoting from within not only strengthens institutional knowledge but also supports employee retention by providing meaningful growth opportunities within the organization.
Workplace morale is also a large factor when considering retention. The Employee Engagement Committee has been empowered to lead and implement a variety of initiatives aimed at strengthening organizational culture and improving employee experience. These efforts include events such as the employee fall festival and other holiday celebrations, which provide opportunities for recognition, team building, and increased employee connection. Collectively, these initiatives support retention by fostering a more engaged and positive workplace.
Hiring Obstacles
Staff have reviewed key factors contributing to current vacancies and hiring delays.
The high cost of living continues to present a barrier to attracting candidates. This regional factor, combined with nationwide hiring challenges, has made recruitment more competitive, especially in smaller more specialized fields and at the executive level.
In addition, the City continues to operate within a highly competitive labor market, where both public and private sector employers are actively competing for a limited number of qualified candidates. To better assess the City’s position, a comprehensive, Citywide classification and compensation study was conducted. Preliminary findings indicate that the City’s compensation structure is generally at or above market level; however, the final City Council Staff Report
May 12, 2026 -- Page 4
AB2561 Employee Vacancies And Recruitment And Retention Efforts report is still being finalized and may provide additional insight into recruitment and retention challenges.
Operationally, hiring timelines have also been impacted by a soft hiring freeze implemented to support budgetary goals. While departments have prioritized critical positions, this approach has contributed to longer recruitment timelines for some vacancies.
Despite these challenges, the City has continued to meet all budgetary targets and is maintaining an overall vacancy rate of approximately 9.7%, reflecting a balanced approach between fiscal responsibility and service delivery needs.
FISCAL IMPACT:
There is no fiscal impact.
REVIEWED BY:
Department Director: Stephanie George
City Manager: Scott Stiles
ATTACHMENTS:
A. Public Hearing Presentation