TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Jennifer A. Maguire
SUBJECT: See Below DATE: June 5, 2026
COUNCIL DISTRICT: Citywide
SUBJECT: Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and other Unrepresented Employees (Units 81/82) For Fiscal Years 2026-2027, 2027-2028, and 2028-2029, and Amendment to the City of San José Pay Plan, Effective June 21, 2026
RECOMMENDATION
Adopt a resolution:
(a) Approving and amending compensation and benefit changes for executive management and professional employees in Unit 99 and other unrepresented employees in Units 81/82 for Fiscal Years 2026-2027, 2027-2028, and 2028- 2029; and
(b) Amending the City Pay Plan, effective June 21, 2026, to increase the annual pensionable salary range of the Housing Policy and Planning Administrator (3988) classification to $143,381.08 – $179,685.06, in addition to the Fiscal Year 2026-2027 pensionable general wage increase.
SUMMARY AND OUTCOME
Adoption of the resolution and authorization to approve compensation and benefit changes will provide pensionable general wage increases in Fiscal Years 2026-2027, 2027-2028, and 2028-2029 for employees in Unit 99 and other unrepresented employees in Units 81/82. It will also provide additional benefit changes for Fiscal Years 2026-2027, 2027-2028, and 2028-2029. This resolution will also provide a special salary adjustment in the Pay Plan for the Housing Policy and Planning Administrator (3988) classification.
COUNCIL AGENDA: 6/16/26
FILE: 26-722
ITEM: 3.8
HONORABLE MAYOR AND CITY COUNCIL
June 5, 2026
Subject: Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and other Unrepresented Employees (Units 81/82) For Fiscal Years 2026- 2027, 2027-2028, and 2028-2029, and Amendment to the City of San José Pay Plan, Effective June 21, 2026
BACKGROUND
General Wage Increases and Benefits for Executive Management and Professional Employees
Executive Management and Professional Employees (Unit 99) consist of approximately 373 full-time equivalent (FTE) positions, including Senior Staff, Executive Staff, senior managers under the City Manager’s Appointing Authority, select Council Office staff, senior managers under the appointing authority of the City Attorney, and professional or management employees under the appointing authority of the City Auditor and Independent Police Auditor. In addition, there are employees in Unit 99 who work in the City Clerk’s Office.
Employees in Unit 99 are exempt employees and, therefore, do not receive overtime. In addition, they are not on salary steps and progress through the salary range based on increases tied to performance only. Employees in Unit 81 are on 2.50% salary steps and receive automatic step increases. Unit 81 includes part-time, unbenefited employees, such as Student Interns. Unit 82 does not currently have any classifications assigned to it.
The recommended compensation changes for Executive Management employees in Unit 99 and other unrepresented employees in Units 81/82 will provide for increases in Fiscal Years 2026-2027, 2027-2028, and 2028-2029, which are consistent with the agreements that have been reached with other non-sworn bargaining units.
Amendment to the Pay Plan to Increase the Annual Pensionable Salary Range of the Housing Policy and Planning Administrator Classification
The current differential between the Senior Development Officer classification and the Housing Policy and Planning Administrator classification is 1.29%. Given the greater responsibilities of the Housing Policy and Planning Administrator classification and to alleviate compaction, it is recommended that the salary range be increased by approximately 8.60%.
ANALYSIS
The following is a summary of the compensation and benefit changes for executive management and professional employees in Unit 99 and other unrepresented employees that are recommended to be implemented upon approval by the City Council:
HONORABLE MAYOR AND CITY COUNCIL
June 5, 2026
Subject: Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and other Unrepresented Employees (Units 81/82) For Fiscal Years 2026- 2027, 2027-2028, and 2028-2029, and Amendment to the City of San José Pay Plan, Effective June 21, 2026
One-Time Non-
Pensionable
Lump-Sum
Payment
Effective the second full pay period of Fiscal Year 2026-2027, following City Council approval in open session, all full-time employees holding positions in Unit 99 and Units 81/82 shall receive a one-time non-pensionable lump-sum payment equivalent to 1.00% of their base annual wages. To receive this lump-sum payment, the employee (1) must have been employed by the City on June 21, 2026, and (2) must have been continuously employed through the date the payment is made. Benefited and Unbenefited part-time employees shall receive a one-time non-pensionable lump sum payment as provided in the table below:
Benefit Level One-Time Non-
Pensionable Lump Sum
Payment
30.00 – 34.00 $ 650
25.00 – 29.00 $ 550
20.00 – 24.00 $ 450
19.00 $ 350
Pensionable
General Wage
Increase
Fiscal Year 2026-2027
Effective June 21, 2026, employees in Unit 99 and Units 81/82 will receive a pensionable general wage increase of approximately
3.00%. This will result in both the top and bottom of the pay range being increased by approximately 3.00%.
Fiscal Year 2027-2028
Effective the first full pay period of Fiscal Year 2027-2028, employees in Unit 99 and Units 81/82 will receive a pensionable general wage increase of approximately 3.00%. This will result in both the top and bottom of the pay range being increased by approximately 3.00%.
Fiscal Year 2028-2029
Effective the first full pay period of Fiscal Year 2028-2029, employees in Unit 99 and Units 81/82 will receive a pensionable general wage increase of approximately 3.00%. This will result in both the top and bottom of the pay range being increased by approximately 3.00%.
HONORABLE MAYOR AND CITY COUNCIL
June 5, 2026
Subject: Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and other Unrepresented Employees (Units 81/82) For Fiscal Years 2026- 2027, 2027-2028, and 2028-2029, and Amendment to the City of San José Pay Plan, Effective June 21, 2026
Vacation
Sellback
Beginning calendar year 2027, the maximum number of vacation hours that an employee assigned to Unit 99 may sell back shall be increased from seventy (70) hours to eighty (80) hours per calendar year.
With respect to the amendment to the City of San José Pay Plan, it is recommended that the Housing Policy and Planning Administrator classification salary range be increased by approximately 8.60% to alleviate salary compaction. Thus, the annual pensionable salary range of the Housing Policy and Planning Administrator (3988) classification will be $143,381.08 – $179,685.06, effective June 21, 2026. This increase to the annual pensionable salary range will be in addition to the Fiscal Year 2026-2027 pensionable general wage increase.
EVALUATION AND FOLLOW-UP
No further follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
In Fiscal Year 2026-2027, the ongoing cost of the 3.00% pensionable general wage increase is approximately $2.7 million, of which approximately $1.5 million is in the General Fund. The ongoing cost related to the changes to vacation sell back is approximately $138,000, of which approximately $78,000 is in the General Fund. The ongoing cost of the special adjustment to the Housing Policy and Planning Administrator classification is approximately $59,000, of which approximately $2,000 is in the General Fund. The cost of the one-time non-pensionable lump sum payment is approximately $780,000, of which approximately $439,000 is in the General Fund. In Fiscal Year 2026- 2027, the costs in the General Fund will be offset by a recommended decrease to the Salaries and Benefits Reserve and other adjustments, as necessary, and a decrease to the Ending Fund Balance or an alternative funding source in the Special Funds as part of budget actions that will be brought forward for City Council consideration as part of the 2025-2026 Annual Report. Costs associated with vacation sellback will continue to be absorbed by departmental personal services budgets to the extent possible.
In Fiscal Year 2027-2028, the ongoing cost of the 3.00% pensionable general wage increase is approximately $2.8 million, of which approximately $1.6 million is in the General Fund. In Fiscal Year 2028-2029, the ongoing cost of the 3.00% pensionable general wage increase is approximately $2.8 million, of which approximately $1.6 million is in the General Fund. These ongoing increases will be factored into the annual development of the Base Budget. Costs associated with vacation sellback for both of
HONORABLE MAYOR AND CITY COUNCIL
June 5, 2026
Subject: Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and other Unrepresented Employees (Units 81/82) For Fiscal Years 2026- 2027, 2027-2028, and 2028-2029, and Amendment to the City of San José Pay Plan, Effective June 21, 2026
these years will continue to be absorbed by departmental personal services budgets to the extent possible.
COORDINATION
This memorandum was coordinated with the City Attorney’s Office, City Manager’s Budget Office, and the City Manager’s Office of Employee Relations.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the June 16, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-010, City Organizational and Administrative Activities resulting in no changes to the physical environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
Jennifer A. Maguire
City Manager
For questions, please contact Aram Kouyoumdjian, Director of the City Manager’s Office of Employee Relations and Human Resources Department, at (408) 535-8150.