Modesto OKs $92.3M in wage, benefit increases for city workers. Here’s who’s getting a raise

The Modesto City Council has approved labor agreements for the majority of its employees that will cost the city $92.3 million over four years.

The agreements call for the city’s civilian employees to receive pay increases totaling 13% over the four years, along with other enhancements. The city’s police officers will receive pay increases totaling 17%, as well as other enhancements over four years.

Council members unanimously approved three labor agreements with the city’s civilian workers — from accounting clerks and electricians to utilities workers and community service officers — on June 13 and unanimously approved on June 27 a labor agreement with the Modesto Police Officers Association.

The pay increases and other incentives also apply to employees not represented by the unions. So City Manager Joe Lopez and his department directors and Police Chief Brandon Gillespie and his captains also will receive increases.

The agreements are from July 1 through June 30, 2027, and apply to 1,130 city employees — everyone but the firefighters, who still have a year left on their current labor agreement. The Fire Department’s managers, including Chief Alan Ernst, also did not receive pay increases. Theirs will be tied to the new labor agreement with the firefighters union.

Councilman David Wright acknowledged in an interview that the labor agreements come with a price tag.

He said Modesto is struggling to attract and keep good employees and too many are leaving to go to work for nearby agencies, including Tracy, the Modesto Irrigation District and Stanislaus County. He added that it is hard to hire and keep good police officers because of a statewide shortage.

The pay increases come after voters in November approved Measure H, the 1% sales tax increase that is expected to bring in about $41.8 million annually to the city’s general fund budget. The budget primarily pays for public safety and other basics. Not including the Measure H funding, the city’s current general fund is about $178 million.

Wright said the labor agreements fit in with Measure H’s goal of delivering better public safety and other services.

“We’re just having a hard time keeping employees,” he said. “One of the issues is salaries.” Wright said the higher compensation will let Modesto compete for and keep excellent employees. “We want quality police officers. We want quality employees — people we can count on” to serve residents.

Sales tax money is going to more than raises

Modesto is spending its Measure H money on more than employee raises.

The city expects to spend $27.1 million of its Measure H funding in 2023-24 budget, which starts July 1, on such projects as replacing playgrounds at eight park and replacing three park bathrooms, hiring four more park rangers, which will bring the number of rangers to a dozen, hiring five more community service officers and one more animal control officer.

The city also will add a tree pruning crew and a forestry crew to help with the backlog in city tree maintenance. And Modesto will fix sidewalks, curbs and gutters damaged by tree roots at roughly 500 locations.

At least $41 million of the labor agreements’ total cost of $92.3 million over the four years will not come from the general fund. The fund makes up about a third of the city’s total operating budget.

Human Resources Director Christina Alger told council members the city’s compensation policy has been to pay its civilian workers 7.5% below the median among comparable jurisdictions. She said the labor agreements bring the city within 5% below the median.

She said the police officers’ total compensation was 6.6% below the median among comparable agencies. She said the new labor agreement brings their compensation to the median.

Alger said in an interview that Modesto compares its civilian compensation against the compensation offered by Bakersfield, Fresno, Livermore, Manteca, Roseville, Sacramento, Stockton, Tracy, Turlock and Stanislaus County.

She said Modesto compares its police officers’ compensation against the compensation offered by Bakersfield, Elk Grove, Hayward, Livermore, Manteca, Sacramento, Stockton, Tracy, Turlock and Stanislaus County.

The staff reports and council presentation did not list what Modesto employees now make. But the California State Controller’s government compensation website provides some detail for 2022.

It shows one police officer’s base pay was $96,226 while another had a base pay of $106,800. A police lieutenant had a base pay of $137,089. An airport maintenance crew leader was paid $69,217 while an accounting technician II was paid $63,597.

The city’s director of community and economic development was paid $175,022, and the city manager was paid $254,588. None of this includes overtime and specialty and incentive pay.

City workers get two more paid holidays

So the total wages for the police officer with the base pay of $96,626 were $221,771. That includes $112,884 in overtime, $1,000 in lump sum pay and $11,261 in other pay. And the city manager’s total wages in 2022 were $279,753. That included $982 in overtime, $10,018 in lump sum pay and $14,165 in other pay.

The labor agreements also have more enhancements, including adding two more paid holidays: Juneteenth and Cesar Chavez Day. That increases the number of paid holidays for the city from 11 to 13. The enhancements include a 2.5% pay increase for having a bachelor’s degree and 4% for a master’s. The city also will contribute more toward employee’s health insurance.

The labor agreements add a sixth step with a 5% pay increase starting in July 2025. Currently, employees whose performance meets expectations can receive five annual 5% step increases in their pay.

Some $62.2 million of the labor agreement’s total cost of $92.3 million over the four years consists of the salary and step increases. There also is $7.7 million in what the city calls market rate adjustments for some employees who the city says are underpaid based on what comparable jurisdictions pay for the same work.