Santa Ana city executives may soon get annual salary range boosts tied to increases in the local consumer price index as officials brace for an expected $30 million revenue loss when a tax measure starts to sunset in three years.
The move could open the door to bigger pay raises in the future for some of the highest paid employees in the city as municipal spending across OC is steadily outpacing revenues – threatening services like public safety, city events and local libraries.
At their 5:30 p.m. meeting Tuesday, Santa Ana City Council members are expected to vote on a salary range hike resolution that would give executives the ability to cash-out sick leave when they leave the city.
The move would also give the city manager discretion to give severance pay when executive managers leave the city without cause.
The resolution would also grant longevity pay to the police chief and increase executive managers employee contributions to their retirement health savings plan from 1.25% to 2.5%.
Councilman Ben Vazquez said pay raises for executive managers won’t be done automatically and that the proposal was about ensuring officials are being equal with all their employees including managers – who he said get raises every five years.
“The raises are not automatic. It’s tied to CPI, so it actually puts it at a limit that would be bearable. It’s giving the city manager the ability to give raises to the people that have been working and leading the department,” he said in a Monday phone interview.
“We have to take care of our workers and do right so they can afford to live in this city and be able to pay their bills and obviously, get raises that they deserve.”
At the same meeting, officials will consider a new contract, giving part-time non civil service employees a retroactive 3% raise going back to last July.
The debate comes three years before Measure X, a 1.5% sales tax measure approved in 2018, starts to sunset in 2029 and the city loses about $30 million in revenue.
It also comes after officials approved a $778 million overall budget last summer – the last big spending plan council members said they’d adopt before they start tightening the belt – and after officials increased the salary ranges for executive managers last year.
It also comes after officials approved a $778 million overall budget last summer – the last big spending plan council members said they’d adopt before they start tightening the belt – and after officials increased the salary ranges for executive managers last year.
[Read: Santa Ana Approves ‘Last Big Budget’ Ahead of Larger Deficits]
Vazquez said if there are cuts because of Measure X they should be equal across the board and that the city is looking to see if there is appetite for another sales tax measure.
In a city staff report, City Manager Alvaro Nuñez argues the adjustments and benefits are needed to attract, recruit and retain executive managers at the city.
Councilwoman Jessie Lopez said Monday that she still had to review the agenda item.
Nuñez and the rest of the city council did not respond to separate requests for comment on the issue Monday.
Benefits of Being an Executive Manager
The proposed resolution, if approved, would increase salary ranges for executive managers like the assistant city manager and the library services director every July based on the consumer price index for the Los Angeles-Long Beach-Anaheim area from December of the previous year.
Last December, the Consumer Price Index for the region had increased by 3% from the previous year, according to the U.S. Bureau of Labor Statistics.
Currently, the city clerk makes roughly $195,000 a year – the lowest out of any executive manager in Santa Ana – while the Police Chief makes over $364,000 a year – the highest out of any executive manager, according to the city website.
The City Manager makes over $342,000 – about $8,000 less than the city attorney.
The resolution would also allow executives managers who separate with the city to cash out their sick day leave at a scaled rate to either their retirement health savings plan, deferred compensation account or cash with a cap on total hours.
It would also provide longevity pay for police chiefs after they served six consecutive years on the job and allow the city manager to give up to six months of severance pay.
According to a staff report, it will cost the city over $7,900 to give the police chief longevity pay and over $4,000 in next year’s budget for salary range adjustments for executive managers.
The report states only one manager next year will get a pay raise based on consumer price index data because they will fall out of the salary range.
“Adoption of this resolution does not result in an immediate pay increase for EMT, as it only provides for future salary increases pursuant to the CPI, not increasing current salaries.”
Hosam Elattar is a Voice of OC reporter. Contact him at helattar@voiceofoc.org.
