Budget, Fiscal, Legislative Standing Committee
September 30, 2026
FY 2026-27 Class and Comp Amendments
California Minimum Wage Increase
(Effective January 1, 2027)
Requested Committee Action
1). Receive presentation; and
2). Recommend that the Full City Council:
Consider adopting a resolution at its November 16, 2026 meeting amending the City's Classification and Compensation Plan for FY 2026/27 by approving the amended Part-Time Salary Schedule to comply with California minimum wage requirements, effective January 1, 2027.
Annual Class and Comp Plan (SPMC Requirements)
Annual Classification and Compensation Plan
§ 2.04.140 Administrative head of government.
The city manager shall be the administrative head of the government of the city under the direction and control of the city council except as otherwise provided in this chapter. The city manager shall be responsible for the efficient administration of all the affairs of the city which are under the city manager’s control. In addition to the general powers as administrative head, and not as a limitation thereon, the city manager shall have the duty and powers set forth in Sections 2.04.140 through 2.04.300.
§ 2.04.220 Preparation and submission of annual budget and salary plan.
It shall be the duty of the city manager to prepare and submit the proposed annual budget and the proposed annual salary plan to the city council for its approval Background and Proposed Amendments
The City Council adopted the two-year General Fund Operating Budget on June 15, 2026, covering FY 2026/27 and FY 2027/28.
January 1, 2027 Minimum Wage
Under California Labor Code Section 1182.12, the statewide minimum wage will increase to $17.40 per hour Effective January 1, 2027
A review of city’s salary schedules identified three part-time classifications (Police Cadet, Recreation Leader and School Crossing Guard) requiring an approximately 3% adjustment to Step A to meet the new minimum wage. To maintain the established 5% differential between each salary step, the entire salary schedule for each affected classification was adjusted accordingly.
The proposed salary amendments are generally consistent with the City's approved budget for staffing and salaries.
Proposed Part-time Salary Schedule
Fiscal Impact
Fiscal Impact
•Proposed adjustments are already incorporated into the City's two- year budget.
•No additional appropriations are required.
•Fiscal impact is expected to be negligible.
•The affected part-time positions do not have associated benefit or retirement costs related to the proposed wage adjustment.
BFLSC Recommendation
1). Receive presentation; and
2). Recommend that the Full City Council:
Consider adopting a resolution at its November 16, 2026 meeting amending the City's Classification and Compensation Plan for FY 2026/27 by approving the amended Part-Time Salary Schedule to comply with California minimum wage requirements.