TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Michelle Tamez, Senior Human Resources Analyst
SUBJECT:
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Consideration of Approval of Fiscal Year 2026/27 Comprehensive Pay Schedule
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ABSTRACT
The proposed resolution establishes the City of Murrieta’s Comprehensive Pay Schedule for Fiscal Year 2026/27, effective July 1, 2026, in compliance with applicable California Code of Regulations and California Public Employees’ Retirement System (CalPERS) requirements related to publicly available pay schedules. The updated Pay Schedule incorporates previously approved cost-of-living adjustments (COLAs) and compensation changes authorized through negotiated labor agreements with the Murrieta Firefighters Association, Murrieta Fire Management Association, Murrieta General Employees’ Association, Murrieta Supervisors’ Association, as well as for unrepresented employees, including the City Manager and employees covered by the Management, Professional, and Confidential Employees’ Compensation Plan. Adoption of the Pay Schedule reflects compensation ranges for all City classifications, including part-time positions (for which COLAs have not been previously approved). Staff also proposes approving an updated Schedule of Authorized Positions for Fiscal Year 2025/26.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4949 entitled: A Resolution of the City Council of the City of Murrieta, California, Approving the Comprehensive Pay Schedule for Fiscal Year 2026/27; and
Approve the Updated Schedule of Authorized Positions.
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PRIOR ACTION/VOTE
On June 17, 2025, the City Council adopted Resolution No. 25-4844, Approving the Comprehensive Salary Schedule for Fiscal Year 2025/26 (5-0).
On August 19, 2025, the City Council adopted Resolution No. 25-4880, Amending and Restating the Comprehensive Pay Schedule for Fiscal Year 2025/26 (Vote: 5-0).
On December 16, 2025, the City Council adopted Resolution No. 25-4902, Amending and Restating the Comprehensive Pay Schedule for Fiscal Year 2025/26 (Vote: 5-0).
On April 21, 2026, the City Council adopted Resolution No. 26-4926, Adopting the Third Amended and Restated Comprehensive Pay Schedule for Fiscal Year 2025/26 (Vote: 4-0-1).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal of: maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency relating to an administrative priority. Adoption of the Fiscal Year 2026/27 Comprehensive Pay Schedule ensures compliance with CalPERS and regulatory requirements while promoting transparent, accurate, and consistent compensation practices.
DISCUSSION
The City of Murrieta (City) maintains a Comprehensive Pay Schedule (Pay Schedule) that is regularly presented to the City Council for review and consideration. Employees of the City receive a rate of pay within the established pay range for their job classification. The Pay Schedule (Exhibit A to Resolution No. 26-4949) is maintained in compliance with State regulations and is intended to ensure transparency and consistency when reporting compensation for City employees to the California Public Employees Retirement System (CalPERS).
The Pay Schedule is also intended to satisfy the requirements of the Public Employees Retirement Law and California Code of Regulations (CCR) at 2 CCR 570.5 that public agencies contracting with CalPERS adopt a “Publicly Available Pay Schedule” for purposes of determining an employee’s “compensation earnable,” which is the amount used to calculate retirement benefits.
The positions listed in the Pay Schedule may not necessarily be budgeted or funded in any given fiscal year. The City Council authorizes and funds specific positions during the adoption of the biennial budget and ongoing budget updates.
According to the City’s Personnel Rules (Resolution No. 91-64), the City Manager recommends adjustments to the Pay Schedule as compensation is adjusted and negotiated, and job clarifications are created or revised. The proposed Resolution No. 26-4949 (Attachment 1) establishes the Pay Schedule for Fiscal Year 2026/27 and incorporates the Cost-of-Living-Adjustment (COLA) authorized by the Memorandums of Understanding and Tentative Agreements with all employee organizations, and reflected in the current Management, Professional and Confidential Compensation Plan.
If adopted, the Pay Schedule will reflect compensation ranges for all city positions, including full-time and part-time employees, for Fiscal Year (FY) 2026/27. The changes to the Pay Schedule are described in more detail below.
The updated Pay Schedule reflects the following compensation adjustments that have already been considered and approved by the City Council for the City’s represented employees and will be effective June 28, 2026, unless noted below:
• Adjustments to the classifications represented by the Murrieta General Employees’ Association (MGEA) to allow for the 3.3% base compensation COLA authorized by the MGEA Memorandum of Understanding (MOU) for the period July 1, 2024 - June 30, 2027 (Resolution No. 25-4867).
• Adjustments to the classifications represented by the Murrieta Supervisors’ Association (MSA) to allow for the 3.3% base compensation COLA authorized by the MSA MOU for the period July 1, 2024 - June 30, 2027 (Resolution No. 25-4889).
• Adjustments to the unrepresented classifications covered under the Murrieta Management, Professional and Confidential Employees’ Compensation Plan (MPC Compensation Plan) to allow for the 3.3% base compensation COLA authorized by the MPC Compensation Plan (Resolution No. 25-4890).
The language in the MGEA MOU, MSA MOU, and MPC Compensation Plan pertaining to FY 2026/27 provides that:
“employees shall be granted a COLA in base pay equivalent to the lesser of either the percentage change of the 2025 Annual Consumer Price Index for all Urban Consumers (CPIU) not seasonally adjusted for the Riverside-San Bernardino-Ontario area, or the percentage change, year-over-year between audited fiscal years 2023/24 and 2024/25, in Recurring Revenue of the City’s primary Operating Funds (as defined by the City), but not to exceed four percent (4%) or be less than two percent (2%).”
This amount was calculated to be 3.3%.
• The FY 2026/27 Pay Schedule reflects a 3.3% increase in the base pay for the City Manager, consistent with the terms of the City Manager’s employment agreement (Resolution No. 24-4795). Section 2.2 of the City Manager’s employment agreement provides that the City Manager is entitled to receive a COLA equal to that of other management employees.
The updated Pay Schedule also reflects the following compensation adjustments that will be considered by the City Council on June 16, 2026, under separate agenda items:
• Adjustments to the classifications represented by the Murrieta Firefighters Association (MFA) to allow for a 2% base compensation COLA, subject to the City Council approval of the proposed Tentative Agreement for a successor MFA MOU for the period July 1, 2026 - June 30, 2029 (Agenda Item No. 6).
• Adjustments to the classifications represented by the Murrieta Fire Management Association (MFMA) to allow for a two percent (2%) base compensation COLA, subject to the City Council approval of the proposed Tentative Agreement for a successor MFMA MOU for the period July 1, 2026 - June 30, 2029 (Agenda Item No. 7).
Additionally, the proposed updates to the Pay Schedule reflect the following compensation adjustment that has not been previously considered by the City Council:
• A 3.3% base pay adjustment to the compensation range for the City’s unrepresented part-time classifications. This is recommended for internal equity, so part-time pay stays aligned with the hourly rate of the full-time classifications receiving a COLA. This recommendation is consistent with the City’s practice of maintaining alignment between part-time and full-time compensation ranges. The fiscal impact associated with this adjustment will be included in the Operating Budget for Fiscal Year 2026/27. This increase has not yet been approved by the City Council but would be by the Council’s adoption of the Pay Schedule.
Schedule of Authorized Positions
New positions, staffing changes, or position reclassifications are sometimes necessary to ensure operational efficiency and effectiveness. Staff also recommends that the City Council approve the updated Schedule of Authorized Positions for Fiscal Year 2025/26 (Attachment 2). The proposed action includes adding two (2) Associate Civil Engineer classifications in the Public Works/Engineering department. The additional two (2) positions increase the total Full-Time Equivalent (FTE) positions for FY 2025/26 from 472.09 to 474.09. Staff also recommends updating the status of four (4) Part-Time Dispatcher I/II from “limited term” to “permanent”.
As part of the FY 2026/27 First Quarter Operating Budget Update, staff will present the net fiscal impact associated with these new positions. The Public Works/Engineering Department anticipates that the two (2) Associate Civil Engineer positions will perform approximately 50% of the City's plan check services currently provided by contract consultants, resulting in reduced contractual service costs and associated operating savings.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
FISCAL IMPACT
The increases associated with previously approved labor agreements were included in the Fiscal Year 2026/27 Adopted Budget. The budgetary impact associated with the public safety labor groups' compensation package and the City’s unrepresented part-time classifications will be incorporated into the FY 2026/27 First Quarter Operating Budget.
ATTACHMENTS
ATT 1 - Resolution No. 26-4949
ATT 2 - FY 2025/26 Schedule of Authorized Positions