City proposes 3% across-the-board pay increase and benefit-plan options; leadership development emphasized

City human-resources staff presented proposed compensation and benefits actions in the FY26 budget, including a recommended 3% across-the-board pay increase effective Sept. 29 and changes to police pay compression to shorten steps and accelerate top-of-scale attainment for officer recruitment. Victoria (last name in packet), the city’s human-resources director, told council the city’s compensation philosophy is to lead the market by midpoint plus 5% and that the 3% across-the-board increase would be implemented with budget approval.

HR also proposed two medical-plan network options for 2026: a locally focused Health Care Highways network with stable premiums and an Aetna national network option with wider provider access and slightly higher premiums. Victoria said employees would receive enrollment information and education before selecting plans during open enrollment. HR also announced a revived Management Professional Program (MP3) leadership-training and succession initiative aimed at addressing a high percentage of executives and managers who will be eligible for retirement within the next four years; Victoria said citywide average tenure for full-time staff is about 10 years and management retirements could create knowledge gaps without proactive leadership development.

Council members asked about attrition, succession planning and whether employees would have concerns choosing between local and national plan networks; HR said it would supply outreach materials and enrollment support to help employees choose and that MP3 will include shadowing, meeting attendance and project-based learning over an 18-month curriculum.