Policy Development & Internal Operations

COMMITTEE MEMBERS Civic Center Laura Nakamura, Chair 1950 Parkside Drive Dominic Aliano, Member Concord, CA 94519 www.cityofconcord.org Special Meeting of the Policy Development and Internal Operations Committee Friday, 3:00 p.m. Garden Conference August 7, 2026 Room 1950 Parkside Drive Concord, CA Information for the public on participation at Committee meetings can be found on the back of the Speaker Identification Card. Should you have any questions after consulting the Speaker Identification Card, please contact staff prior to the Committee meeting. AGENDIZED ITEMS – The public is entitled to address the Committee on items appearing on the agenda before or during the Committee’s consideration of that item. Each speaker will be limited to approximately three minutes. 1. ROLL CALL 2. REPORTS The public is entitled to address the Committee on items appearing on the agenda before or during the Committee’s consideration of that item. Each speaker will be limited to approximately three minutes. Please see “How to Submit Public Comments” above. a. Considering Fiscal Year 2025-27 Budget adoption follow up item and providing direction to staff. Report by Joelle Fockler, City Clerk. 3. ADJOURNMENT 1  NOTICE TO THE PUBLIC There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited by California law to raising only those issues you or someone else raised in the hearing or in a written correspondence delivered to the City Council prior to or at the hearing. In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or Tianjun.cao@cityofconcord.org, at least 24 hours in advance of the meeting. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility. Distribution: City Council Jerome C. Wilverding, City Manager Susanne Brown, City Attorney Justin Ezell, Assistant City Manager Joelle Fockler, City Clerk 2  2.a Staff Report Date: August 7, 2026 To: Council Committee on Policy Development and Internal Operations From: Justin Ezell, Assistant City Manager Prepared by: Joelle Fockler, MMC, City Clerk Joelle.Fockler@cityofconcord.org (925) 671-3390 Subject: Considering Fiscal Year 2025-27 Budget adoption follow up item and providing direction to staff. Report in Brief This report provides follow-up information related to Fiscal Year 2025-27 Budget adoption. It includes an overview of the City’s long-term unfunded infrastructure needs, recent fiscal actions taken by the City Council, and information related to City Council compensation. Staff seeks input and direction from the Committee on next steps. Recommended Action Hear the report and provide direction to staff. Background The City is currently deficit spending and is projected to continue operating in a deficit through Fiscal Year 2032, creating significant pressure on its ability to maintain core infrastructure and public facilities. Additionally, the City faces an estimated annual infrastructure funding shortfall of at least $24.7 million, including approximately $18 million needed each year to maintain roadway conditions at the current Pavement Condition Index (PCI) of approximately 58 and an additional $6.7 million for park, median, and public facility maintenance. Significant unfunded needs also remain for aging infrastructure systems, including stormwater facilities, streetlights, traffic signals, and other public assets. This funding gap is the result of decades of deferred maintenance, rising construction costs, inflation, and limited growth in reliable local revenues. While the City has made substantial investments through Measure V, borrowing, grant funding, American Rescue Plan Act (ARPA) resources, and operational efficiencies, existing revenues remain insufficient to meet long-term infrastructure needs. Page 1 of 3 Committee Agenda Report Agenda Item No. 2.a August 7, 2026 In March 2025 the City Council adopted a Tier 1 Strategic Goal to address the City’s unfunded infrastructure needs, and in May 2025 the Council adopted the 2025-27 Operating Budget that incorporated cost-cutting measures and the use of reserves to offset deficit spending. At that time, the Council postponed discussion of City Council compensation until after completion of 2026 labor negotiations. In July 2026, the Council voted to place a ballot measure on the November 2026 ballot to simplify the business license tax structure and generate approximately $3 million annually for core City services as a step to address the City’s long-term unfunded infrastructure needs. There are four remaining strategies that will be explored in a long- term, multi-year, and multi-phase plan to address the City’s unfunded needs gap. The 2026 labor negotiations concluded with Council’s approval of the equivalent of 3% annual wage increases for staff to support recruitment and retention of qualified employees. With negotiations now complete, the Council Committee on Policy Development and Internal Operations is requested to consider the remaining follow‑up item from the FY 2025–27 budget adoption: City Council compensation. Analysis State Law regulates Council compensation and states that the City Council may not increase compensation by more than 5 percent non-compounded per year since the effective year of the last adjustment. Under State law, these increases must be enacted by ordinance and can only be effective at the start of a new term (i.e., after an even year November election in Concord). The existing Councilmember compensation, which took effect after the November 2024 election is set at $1,900 per month; therefore, the maximum increase allowed under State law is 10 percent (5 percent x 2 years, non-compounded). Should Council wish to consider adjustments to its compensation, staff has prepared the following table outlining compensation alternatives, applying a consistent percentage increase for each calendar year during 2025 to 2026. Example: 5% annual increase over two calendar years for a total of 10%, or $2,090. Existing Compensation: $1,900 % Increase 1% 2% 3% 4% 5% 2025 $19 $38 $57 $76 $95 2026 $19 $38 $57 $76 $95 Non-Compounded Total $1,938 $1,976 $2,014 $2,052 $2,090 The additional table below provides compensation alternatives using the variations of non-compounded percentage increases over multiple years. Specifically, the table Page 2 of 3 Committee Agenda Report Agenda Item No. 2.a August 7, 2026 shows the total increase from no change, i.e., existing compensation of $1,900 a month, to maximum legally allowable change of 10%, which would be $2,090 a month, and every option in between. Example: 2% increase in calendar year 2025 and 4% in calendar year 2026 for a total of 6%, or $2,014. Existing Compensation: $1,900 This table is for 1% 2% 3% 4% 5% calculating the non- 1,919 1,938 1,957 $1,976 1,995 compounded total of 6% 7% 8% 9% 10% mixing and matching percentage increases. $2,014 $2,033 $2,052 $2,071 $2,090 Financial Impact If Council chooses to proceed with a compensation adjustment, the financial impacts will vary based on the level of increase outlined in the tables above. The maximum possible annual impact is $2,280 per councilmember, or $11,400 annual total, which corresponds to the 10% maximum allowable adjustment. Public Contact The Agenda was posted. Page 3 of 3