TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kim Summers, City Manager
PREPARED BY: Diego Chavez, Administrative Services Director
SUBJECT:
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Updated Murrieta Management, Professional, and Confidential Employees’ Compensation Plan
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RECOMMENDATION
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Adopt Resolution No. 24-4785 entitled: A Resolution of the City Council of the City of Murrieta, California, Approving an Updated Murrieta Management, Professional, and Confidential Employees’ Compensation Plan.
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PRIOR ACTION/VOTE
On July 2, 2024, the City Council adopted Resolution 24-4772, approving an updated Murrieta Management and Confidential Employees’ Compensation Plan (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The compensation and benefits for the City’s Management, Professional, and Confidential employees are provided in the “Management and Confidential Employee’s Compensation Plan” (M&C Compensation Plan). The M&C Compensation Plan is adopted by resolution of the City Council. The M&C Compensation Plan covers approximately 62 different classifications and 77 authorized positions.
The M&C Compensation Plan was most recently amended on July 2, 2024. An updated M&C Compensation Plan has been prepared for the City Council’s consideration. If adopted, the updated plan would supersede and replace the M&C Compensation Plan approved by the City Council on July 2, 2024. This updated document reflects the following changes:
Miscellaneous Clean-up Edits / Amendments.
1. The plan's name was changed from Management and Confidential Employees’ Compensation Plan to Management, Professional, and Confidential Employees’ Compensation Plan (MPC Compensation Plan) to reflect the types of employees covered under the plan more accurately. The document was updated to add “Professional” employees throughout.
2. The Community Services Director was added to the list of Department Heads.
3. The Assistant Management Analyst position was deleted from the list of Management positions. This position was inadvertently listed in two sections.
4. The Deputy Fire Chief, and Fire Marshal were added to the list of classifications that are provided with a vehicle to match practice.
5. Dates and grammar throughout the Compensation Plan were updated.
Compensation and Benefits Increases for City Council Consideration.
1. The monthly health contribution amount was increased from $1,747.83 to $1,891.28, effective January 1, 2025.
2. A Cost-of-Living-Adjustment (COLA) to base pay for Fiscal Year 2025/26 and 2026/27 was added as follows:
a. Effective the first pay period in FY 2025/26, employees shall be granted a COLA in base pay equivalent to the lesser of either four percent (4%) or the percentage change of the 2024 Annual Consumer Price Index for all Urban Consumers (CPI-U) not seasonally adjusted for the Riverside-San Bernardino-Ontario area. If the CPI-U percentage change is negative, then the COLA shall be zero percent (0%).
b. Effective the first pay period in FY 2026/27, 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 (CPI-U) 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%). If the CPI-U percentage change is negative or the change in Recurring Revenue is below zero percent (0%), then the COLA shall still be no lower than two percent (2%).
FISCAL IMPACT
The fiscal impact of approving the proposed MPC Compensation Plan for FY 2024/25 is $57,668, and is estimated to be $1,114,421 for FY 2025/26, and $1,552,810 for FY 2026/27. The FY 2024/25 monthly health contribution costs will be incorporated into the Operating Budget during an upcoming Budget Update. The FY 2025/26 and FY 2026/27 costs will be added to the next Biennial Budget.
ATTACHMENTS
1. Resolution No. 24-4785