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Vacaville Council OKs two‑year labor deals with pay increases; city foresees multi‑year budget gap
Summary
Council approved successor memoranda of understanding affecting about 580 employees, granting 2% cost‑of‑living increases and one‑time cash payments; staff said the changes add about $1.98 million this fiscal year and widen a multi‑year forecast gap that will require revenue or savings measures.
Vacaville’s City Council on Nov. 19 approved successor memoranda of understanding covering most municipal bargaining units, enacting a two‑year contract that city staff said balances modest wage increases with fiscal caution.
The agreements, effective Nov. 1, 2025 through Oct. 31, 2027, include a 2% cost‑of‑living adjustment (COLA) on Nov. 1, 2025, a one‑time non‑pensionable $1,000 lump‑sum payment for most employees, and another 2% COLA on Nov. 1, 2026. Firefighters waived the $1,000 lump sum in exchange for the city funding paramedic training slots, staff said.
City presentations by HR and finance staff described group‑specific changes such as expanded tuition and student loan reimbursement, a health insurance opt‑out payment (corrected in the staff report to $250), new vacation tiers for long‑service employees, and pay differentials or administrative leave increases for several groups. Staff also said certain operational pay items and administrative leaves were standardized across groups.
—This is a data‑driven approach that aims to retain staff while being mindful of our budget,— the HR presentation said. Finance staff estimated the agreements will cost about $1,980,000 in the current fiscal year and roughly $7.37 million over the two‑year term when roll‑ups and liabilities are included.
Council members and staff framed the vote as part of a broader fiscal picture. Finance staff warned the city’s updated five‑year forecast shows an average structural gap (driven in part by a lower sales‑tax outlook and the added cost of MOUs) that will require revenue enhancement or continuing cost‑savings measures.
Mayor Carly and council members thanked negotiating teams and negotiated units for a collaborative process; the council adopted the resolutions by voice vote.
What’s next: staff will finalize pay‑schedule updates and implement the terms; budget and forecast adjustments tied to the MOUs will be reflected in forthcoming midyear financial reports and strategic planning discussions.
