Gilroy City Council Approves MOU and Salary Increases for Management Staff

The Gilroy City Council convened on July 28, 2025, to address key agenda items, including the approval of a memorandum of understanding (MOU) with the Gilroy Management Association and the appointment of an interim city administrator.

The meeting began with a discussion on item 8.2, which focused on the approval of the MOU and associated salary schedules for the Gilroy Management Association, covering the period from July 1, 2025, to June 30, 2028. Staff reported that this agreement follows a meet and confer process initiated in April, as the previous contract expired on June 30. The MOU affects 40 exempt mid-management employees, including various positions such as police captain and IT manager.

Key provisions of the agreement include salary increases of 3% in 2025, followed by 2.5% increases in both 2026 and 2027. Additionally, the city will enhance its deferred compensation contribution, increasing from $30 to $130 per month in 2026 and to $230 in 2027. The city’s contribution to the medical and dental cafeteria plan will also rise by 5%. The fiscal impact of the MOU over three years is estimated at $867,000, with the budget already accommodating these changes.

After a brief discussion, the council unanimously approved the MOU and the associated salary schedules with a 6-0 vote.

The meeting then moved to item 8.3, which involved the appointment of Brad Kilger as interim city administrator following the upcoming retirement of current administrator Jimmy Forbus. Kilger, a retired city manager with extensive experience, was selected to fill this role temporarily while a nationwide search for a permanent replacement is conducted. His hourly rate will be $151.56, with no additional benefits, resulting in projected savings of approximately $37,000 to $55,500 during this interim period.

The council approved Kilger's appointment and the associated resolution, again with a unanimous vote.

In summary, the Gilroy City Council's meeting addressed significant personnel changes and financial agreements that will shape the city's management structure and employee compensation over the coming years. The council's decisions reflect a commitment to maintaining effective governance and fiscal responsibility as they prepare for future leadership transitions.