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Temecula approves executive salary schedule and three-year Teamsters contract with 3% COLA

Temecula City Council · June 9, 2026
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Summary

Council approved revised salaries for executive positions and a three-year memorandum with Teamsters Local 986 that includes a 3% cost-of-living adjustment, stepped increases in the employer health contribution, enhanced disability benefits and other terms; staff estimated an approximate $7.35 million fiscal impact.

The Temecula City Council on June 9 approved a package of compensation items that included revisions to the city's schedule of authorized positions and salary ranges, revised executive employment agreements and a three-year memorandum of understanding with Teamsters Local 986.

Human resources staff presented the proposals, which include a 3% cost-of-living adjustment effective July 2026 for represented employees and updated executive contracts with a 3% COLA and standard management benefits. The Teamsters agreement runs July 1, 2026, through June 30, 2029, and phases increases to the city's health contribution from $600 per month to $1,000 per month on July 1, 2026, with additional increases scheduled in January 2027 and January 2028. The MOU also includes expanded short- and long-term disability benefits, city-paid premiums for certain insurance lines, increased safety footwear and standby pay, and administrative updates.

Staff estimated the one-time and ongoing fiscal impacts of the combined actions at roughly $7.35 million, about 3.7% of the city's primary operating budgets for the coming year. The council moved the item, discussed workforce retention and fairness, and approved the measures by vote.

The action formalizes the updated salary schedule and the successor Teamsters agreement and incorporates related language changes into the city's management and council compensation plans.