Committee endorses six-year financial plan and flags police labor cost increases

Finance staff presented the annual long-term financial update covering fiscal years 2025 through 2030 and recommended the committee forward the plan to City Council. Staff said the updated plan shows the city structurally balanced across the forecast, with capital improvement program (CIP) funding and reserve policies met.

Staff highlighted labor cost pressures tied to recent deputy labor negotiations, saying the agreement yields an 18% base-salary increase over three years, implemented in steps (an 8% increase in January, a 5% increase in July 2024 and a further ~4% in July 2025). Staff estimated the contract increase will raise costs by about $8.3 million for the next fiscal year but said the plan incorporated that change.

Committee members and staff discussed offsets and assumptions, including savings from the Public Employee Pension Reform Act for newer hires, overtime and workers' compensation considerations, and the effect of surplus transfers into CIP. Staff confirmed the long-term plan will go to the City Council agenda on May 7.

A motion to forward the plan to City Council passed by recorded vote (4–0 with Chair Amezcua absent). The committee emphasized ongoing monitoring of contract and pension assumptions as the plan proceeds to council review.