Item Number: 13
City Council / Board of Directors
Written Communications
Meeting of: June 2, 2026
Submitted By:
Jenele Davidson, Deputy City Manager
Subject:
Fiscal Year 2026-2027 Budget Workshop – Council Member Requests Recommendation:
Staff recommend that the Honorable City Council review the information provided relative to individual Council Member requests made during the Fiscal Year (FY) 2026-2027 Budget Workshop held on May 21, 2026, and take no further action at this time.
Fiscal Impact:
Implementation of an additional 0.25% COLA for FY 2026-2027 would result in an estimated increase of approximately $147,998 in citywide personnel expenditures, inclusive of salary adjustments for both full-time and part-time employees, as well as associated employer-paid benefit costs.
The addition of two Code Enforcement Officer II positions would result in an estimated increase to personnel costs of approximately $260,893, plus additional one-time startup and costs estimated at $150,000 - $175,000 associated with vehicles, equipment, technology, training, personal protective equipment, uniforms, and workspace accommodations.
Strategic Plan Goal:
This item supports Strategic Plan Goal G: Organizational Effectiveness and Sustainability which provides high quality services through a commitment to local government best practices, and employee development and retention. It also supports Strategic Plan Goal A: Financial Sustainability, which fosters fiscal health through disciplined long-term planning and cost control.
Background:
Preparation of the City’s annual operating and capital budget is a comprehensive process that begins several months prior to the start of the fiscal year. The budget development 4 7
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process involves extensive coordination between the Finance Department, Human Resources, Executive Team, and all City departments to evaluate operational priorities, staffing needs, capital improvements, and long-term financial obligations.
As part of the annual budget preparation process, departments conduct internal operational assessments to determine current and future service needs. These evaluations include reviews of staffing levels, workload demands, operational efficiencies, technology improvements, contractual services, and program enhancements necessary to maintain service delivery standards. Departments requesting additional personnel are required to submit formal personnel requests supported by operational justifications, workload analyses, and service impact assessments.
Following departmental review, Finance and Human Resources staff work collaboratively with the Executive Team to evaluate the fiscal impacts associated with personnel costs, negotiated labor increases, benefits, retirement obligations, and funding availability across all applicable City funds. This analysis includes review of the General Fund, Measure P Fund, enterprise and special revenue funds, assessment districts, and other restricted funding sources to ensure the City can continue to meet operational obligations while maintaining long-term fiscal sustainability.
Throughout the budget development process, staff prepares and evaluates multiple financial scenarios to assess cash flow, liquidity, operational sustainability, and future financial obligations. In addition to balancing operational needs with available resources, staff must also consider long-term liabilities, including pension obligations, infrastructure demands, economic uncertainties, and future service delivery expectations.
Discussion:
On May 21, 2026, the City Council was presented with the proposed FY 2026-2027 Budget during the annual Budget Workshop. During the discussion, two individual Council Members requested additional analysis regarding:
(1) Implementing an additional 0.25% Cost of Living Adjustment for all City employees, and
(2) Adding two additional Code Enforcement Officer II positions assigned to the Homeless Engagement Team (HET).
Staff subsequently evaluated the operational and financial impacts associated with both requests. The proposed additional 0.25% COLA increase would result in an estimated increase of approximately $147,998 citywide, including impacts to full-time and part-time personnel costs and associated employer-paid benefits. The addition of two Code Enforcement Officer II positions would result in an estimated annual personnel cost of approximately $260,893, with additional one-time startup costs related to vehicles, equipment, communications devices, training, and workspace needs estimated at $150,000 - $175,000.
Although the proposed FY 2026-2027 budget reflects an overall citywide surplus, the General Fund and Measure P Fund — the primary funding sources associated with the 4 7
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Council Member requests — are currently projected to operate with a combined deficit of approximately $12.39 million. While the cashflows for these funds are sufficient to cover the additional deficit spending for these requests initially, these changes will only accelerate the downward trend of the General Fund and Measure P reserve levels over time.
Additionally, while the combined total of the 3.0% COLA for employees approved for the last three fiscal years and the 3% COLA proposed for the FY 2026-2027 budget year falls short of the cumulative total of the March-over-March CPI for Riverside-San Bernardino- Ontario over the same period, the City has made considerable increases to fringe benefits offered to employees over that same period to further enhance the collective benefits package and offset cost of living increases. Furthermore, in bringing forward a recommendation for a COLA, staff must keep in mind the potential impacts of wage and benefit enhancements offered to non-represented employees on future negotiations with represented groups. Historically, the staff recommendation has been to maintain parity between the represented and non-represented groups relative to the COLA and fringe benefits. Approval of a higher COLA for non-represented employees will be a point of contention in future discussions with our represented groups.
In evaluating the request for additional Code Enforcement staffing, staff also considered the operational assessment and recommendations outlined in the attached memorandum from the Code Enforcement Official to the City Manager dated May 27, 2026 (Attachment A). The memorandum notes that the Code Compliance Division currently operates seven days per week utilizing a 4/10 schedule and consists of 17 field staff members supporting homeless outreach, proactive enforcement, code compliance, and community response operations.
The memorandum further explains that HET officers routinely coordinate with public safety personnel, service providers, and sanitation crews while managing outreach activities, encampment response efforts, and compliance enforcement. While additional staffing could improve response times, proactive outreach efforts, continuity of care, and enforcement visibility, staff believes it is prudent to first evaluate the effectiveness of several operational enhancements already planned for implementation during Fiscal Year 2026-2027.
These planned operational improvements include implementation of City Detect, an artificial intelligence-based compliance and inspection platform intended to improve field efficiency and reduce time spent conducting routine inspections; SwiftComply, a compliance management platform designed to automate regulatory tracking and reporting functions; anticipated staffing increases to the Police Department’s Multi- Enforcement Team (MET); and the implementation of the City’s Commercial Rental Licensing Program. Staff anticipates these initiatives will improve operational capacity and efficiency within the existing staffing structure.
Based on the current fiscal outlook and pending operational enhancements, staff recommends deferring consideration of additional Code Enforcement Officer II positions 4 7
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to a future budget cycle after sufficient operational data becomes available to evaluate whether additional staffing resources remain necessary to meet service demands and Council priorities.
For the reasons described herein, staff does not recommend the proposed additional
0.25% COLA increase or the addition of two new Code Enforcement Officer II positions at this time. However, should the City Council direct staff to proceed with either or both of these requests despite this recommendation, staff would return at a subsequent meeting with the appropriate budget amendment and updated benefits resolution and salary schedule to reflect the associated changes.
Staff is available for any questions the City Council may have.
Prepared By:
Carmen Cun, Director of Finance
Attachments: A. Staffing Recommendation Memo - Code Enforcement Officers