Title
Successor Labor Agreement/Memoranda of Understanding; and the Citywide Salary Schedule [Two-Thirds Vote Required]
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FileID
File ID: 2026-01842
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Location
Location: Citywide
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Recommendation
Recommendation: 1) Pass a Motion by two-thirds vote: waiving the 10-day posting requirement of City Code section 4.04.020.C for the Successor Labor Agreement/Memorandum of Understanding (MOU) with the Sacramento Police Officers Association (SPOA); and 2) adopt a Resolution a) approving the MOU between the City of Sacramento (City) and the SPOA; b) approving the revised citywide salary schedule; c) authorizing the City Manager to conduct the necessary budget adjustments and transfers from fund balances to adequately fund the MOU; and d) authorizing the City Manager or designee to make minor changes or adjustments to the exhibits in order to correct omissions and errors in the MOU and salary schedule.
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Contact
Contact: Aaron Donato, Labor Relations Manager, (916) 808-5816, adonato@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-SPOA MOU (Redline)
3-Salary Schedule (Redline)
4-SPOA Labor Agreement Costing
5-Resolution
6-Exhibit A - SPOA MOU
7-Exhibit B - Salary Schedule Final
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Description/Analysis
IssueDetail
SPOA Successor Labor Agreement/MOU
The 2025-2026 MOU between the City and SPOA expired on April 17, 2026. The City and SPOA have negotiated a successor MOU. Attachment 2 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: April 18, 2026, through April 27, 2029.
• Effective April 18, 2026, salary ranges will be increased by three and one-half percent (3.5%).
• Effective April 17, 2027, salary ranges will be increased by three and one-half percent (3.5%).
• Effective April 15, 2028, salary ranges will be increased by four percent (4%).
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective October 17, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
• Longevity
• Effective June 27, 2026, employees who have completed ten (10) years of service are eligible to receive longevity in the amount of two percent (2.0%) above their base rate of pay.
• Effective June 27, 2026, employees who have completed seventeen (17) years of service are eligible to receive three percent (3.0%) above their base rate of pay, for a cumulative total of five percent (5.0%).
• Effective December 26, 2026, employees who have completed ten (10) years of service are eligible to receive longevity in the amount of two and one-half percent (2.5%) above their base rate of pay.
• Effective December 26, 2026, employees who have completed seventeen (17) years of service are eligible to receive three percent (3.0%) above their base rate of pay, for a cumulative total of five and one-half percent (5.5%).
• Effective June 24, 2028, employees who have completed ten (10) years of service are eligible to receive longevity in the amount of three percent (3.0%) above their base rate of pay.
• Effective June 24, 2028, employees who have completed seventeen (17) years of service are eligible to receive three percent (3.0%) above their base rate of pay, for a cumulative total of six percent (6.0%).
• Effective December 23, 2028, employees who have completed eight (8) years of service are eligible to receive longevity in the amount of three percent (3%) above their base rate of pay.
• Effective December 23, 2028, employees who have completed fifteen (15) years of service are eligible to receive three percent (3.0%) above their base rate of pay, for a cumulative total of six percent (6.0%).
• Incentive Pay
• Effective December 26, 2026, the incentive pay for holding an Intermediate P.O.S.T. certificate will be increased by one percent (1.0%) for a total of six percent (6.0%).
• Effective December 26, 2026, the incentive pay for holding a Public Safety Dispatcher Certificate will be increased by one percent (1.0%) for a total of six percent (6.0%).
The final version of the SPOA MOU is attached to the Resolution as Exhibit A (Attachment 6).
Salary Schedule
The California Code of Regulations requires that the City Council adopt the City’s Salary Schedule at a public meeting (2 CCR § 570.5). This obligation arises whenever salary ranges are changed to ensure that salary rates are transparent and publicly available. These publicly adopted rates are used by California Public Employees’ Retirement System (CalPERS) to determine the appropriate compensation earnable for each City employee when calculating their pension benefit.
A redline version of the salary schedule is shown in Attachment 3. The final, comprehensive Citywide salary schedule is attached to the Resolution as Exhibit B (Attachment 7).
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PolicyConsiderations
Policy Considerations: Approval of this action by the City Council is consistent with the City’s legal obligation under the Meyers-Milias-Brown Act, adheres to the City’s positive labor management relations concept, and provides labor stability.
The Sacramento City Code Section 4.04.020 and Council Rules and Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action. This provision will be waived by City Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of this action will establish a new MOU between the City and the Sacramento Police Officers Association (SPOA). Additionally, approval of this action will establish compliance with the California Code of Regulations § 570.5.
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FinancialConsiderations
Financial Considerations: The total cost of the proposed MOU for Fiscal Year (FY) 2026/2027 is approximately $7.3 million with an ongoing annual cost at the end of the three-year term of approximately$19.3 million in the General Fund, as shown below and detailed in Attachment 4.
The City's latest General Fund five-year forecast is in deficit starting in FY2027/28. During the budget process, the forecast assumed $4.8 million in FY2026/27 and up to $6.1 million on an ongoing basis for the proposed MOU. FY2024/25 Year-End Reserve will be utilized to balance the current year budget and budgeted as part of the balancing strategies for FY2027/28. The forecast including the final MOU costs is shown below.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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