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Gilroy council approves three-year AFSCME successor memorandum of understanding
Summary
City approved a successor MOU with AFSCME Local 101 covering 07/01/2026'06/30/2029 with tiered salary increases and an estimated FY27 cost of about $655,000; vote was unanimous.
The City Council on July 27 unanimously approved a successor memorandum of understanding with AFSCME Local 101 (general and supervisory units), adopting salary schedules for July 1, 2026, through June 30, 2029.
Human resources staff presented the agreement and its main terms: salary increases of 3.8% on July 1, 2026; 3.7% on July 1, 2027; and 3.0% on July 1, 2028; a commitment to complete a total compensation study by Dec. 31, 2028; a 5% annual increase to medical and dental premiums; and restructurings tied to the utilities reorganization. Leanne McPhillips, who presented the item, said the agreements had been signed by bargaining representatives and staff recommended approval.
City staff estimated the fiscal-year-27 cost for the changes at about $655,000 (62% general fund; 38% other funds). Councilmember Ramirez moved approval and the council adopted the MOU and related salary resolutions through a series of roll-call votes, each passing 6'0. Staff said FY28 and FY29 costs would be incorporated in the next budget cycle.
