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Laguna Woods raises council pay, amends budget and updates employee compensation policy
Summary
Council approved an ordinance increasing monthly council pay from $300 to $500 effective January 2027 and adopted a $6,000 mid‑year appropriation; the council also adopted a resolution updating compensation ranges and removed a repayment requirement for employee educational assistance to align with AB 692.
On Feb. 18 the Laguna Woods City Council approved two related personnel and compensation actions.
First, council members adopted a council‑initiated ordinance to raise the monthly stipend available to council members from $300 to $500, effective for salaries paid beginning January 2027. Staff also presented a related budget resolution to add $6,000 to fiscal‑year 2026–27 appropriations to cover the partial‑year cost; council adopted the resolution by voice vote.
Second, the council adopted a resolution revising the city’s compensation and benefits schedule. Staff said the changes are informed by a market survey and include a 4% range adjustment for two director‑level positions; one part‑time position’s rate would change from $21 to $23 per hour if filled. The resolution also removes the repayment obligation for employee educational assistance that had required repayment if an employee left within 12 months. Staff said Assembly Bill 692 created new complexity for repayment agreements and recommended eliminating the repayment requirement while retaining internal limits on assistance amounts and supervisor approvals.
Staff noted that increasing a compensation range does not automatically raise pay for incumbents unless their current pay falls below a new minimum. The council approved both the ordinance and the compensation resolution; staff will implement changes through HR processes and the upcoming budget cycle.
