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Council adopts standard compensation rules for department heads through FY29
Summary
Council approved Resolution 3499 to set a uniform compensation framework for executive management employees (department heads) through FY2029, aligning pay to labor-market analysis, changing longevity/variable-pay structures, and estimating a FY27 cost impact of about $45,402 if all eligible employees opt in.
Assistant City Manager Allison McCormick presented Resolution 3499, a citywide resolution to establish consistent compensation and employment terms for department heads effective Aug. 10, 2026 through fiscal year 2029.
McCormick said the resolution ties department-head compensation to a labor-market, total-compensation analysis rather than legacy individual employment agreements. Key provisions include labor-market adjustments for pay ranges, replacing routine longevity pay with performance-based variable compensation for most roles, capped post-retirement health coverage formulas, and the city manager's authority to terminate a department head without cause with 90 days' notice in most cases; separation benefits remain available in qualifying circumstances.
The staff report estimated an approximate $45,402 cost impact in the remainder of FY27 if all current employees on individual agreements opt into the resolution; the resolution also aligns future adjustments with the city’s broader MPT wage framework. Councilmember Abbott moved to adopt the resolution; the motion was seconded and carried unanimously.
Why it matters: The measure standardizes executive compensation, reduces long-term severance liabilities, and seeks to make external recruitment and internal equity more predictable.
What’s next: Current employees will have the option to opt into the resolution; future hires will be covered automatically, and staff will implement any market adjustments as directed in the resolution.
