REVENUE & EXPENDITURE ASSUMPTIONS
SALARIES & BENEFITS
Personnel costs represent 65.5 percent of the City’s total General Fund expenditures in FY 2023- 24. Mindful of the increasing costs of California Public Employees Retirement System (CalPERS), City Council implemented a plan in 2013 to pay down the City’s unfunded pension liabilities and help stabilize future pension costs. Overall, personnel costs are projected to increase annually approximately 3.6 percent over the next five years. Assumptions include merit increases and 3.5 percent cost-of-living adjustments (COLAs) mandated by labor agreements. Historically, City positions have stayed vacant for a period of time while recruitments are conducted. Consequently, an average vacancy rate of 4 percent is assumed for full-time positions. Retirement assumptions have been provided by CalPERS and are discussed further in the Strategic Business Plan Chapter. To meet the needs of the community and ensure the provision of essential services is met, 21 new positions funded by general fund, special funds, and upgrading extended part-time employees to full- time are included in FY 2023-24.
FY 2023-25 Adopted Budget
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