Council approves one-time expenses and market adjustments for police and fire; non-public-safety raises held in contingency

Finance staff presented preliminary compensation-study results and a proposed midyear budget amendment showing that Sunnyvale’s general government positions were, on average, about 5% below market and public-safety ranks further behind (police ~13% below market; fire averaging ~14% below market). Staff proposed a midyear package that included a 3.5% general adjustment and an optional 5% market increase for fire; staff characterized the combined fiscal impact and noted projected additional revenue (roughly $482,000) from increased sales tax and fees.

After extended discussion about comparable jurisdictions, pay bands, and timing given the incoming town manager, Councilmember Finch moved — and Councilmember Allen seconded — a motion to approve the one-time budget items and to implement the salary adjustments for police and fire, while leaving non-public-safety staff raises in contingency for the new town manager to review and reallocate. Council described this approach as incremental progress toward longer-term compensation goals. Finance staff said the 3.5% package would cost approximately $175,000 (including benefits) for police, fire and general government with additional nominal amounts from the water fund; TMRS pension contributions were estimated at about 12.5%.

The motion passed 6–0. Council and staff said they intend to continue work on a multi-year compensation plan and will present more detailed options during May strategic workshops and the FY27 budget process.